American Machinist has an article which we at Unionwear agree with for reshoring to stick, manufacturers need to modernize.

For decades, U.S. manufacturers reaped considerable production-cost savings by moving their operations offshore, primarily due to the low cost of foreign labor. And although the reshoring trend began around 2010, the past few years have seen a sharp increase in reshoring manufacturing, due in part to rising labor costs worldwide. Obviously, the Covid-19 pandemic had a lot to do with accelerating the trend as well.

Another notable factor motivating U.S. manufacturers to reshore is a wholesale shift in perspective, from price-per-part cost modeling to a total-cost-of-ownership mindset. This includes direct costs, such as record-high shipping rates, managing offshore vendors, and overstocking to buffer against future supply shocks. Then there are indirect costs, including loss of control of intellectual property, risks to reputation, and changing ESG standards.

Two of the top trending factors currently influencing manufacturers’ decisions to reshore are noteworthy: social and ethical concerns due to human rights abuses in China, and Walmart’s $350-billion commitment to sourcing U.S.-made products.

Other factors trending up include manufacturers inventory shortfalls due to supply-chain disruptions, rising freight costs, and the ability to mitigate high U.S. labor costs with automation.

Whatever the motivation, reshoring has outpaced foreign direct investment (FDI) in job creation for three consecutive years, creating a wealth of new employment opportunities in domestic manufacturing.

However, the future of U.S. manufacturing remains to be seen. Businesses will undoubtedly experience some growing pains as they transition away from long-held practices.

For reshoring to truly stick, manufacturers must offer improved products and impeccable customer service that will surpass foreign manufacturers.

Their efforts should involve tactics including but not limited to:
•  Maintaining quick responsiveness to RFQs;
•  Communicating proactively about ways to lower customer costs or decrease lead times;
•  Providing failsafe security and IP protection;
•  Consistently delivering orders on time.

There is a lot more at the article. Click here to read.