There are many reasons to set up, or reshore, your manufacturing in the USA. While patriotism is a great reason to set up shop here, business leaders know you need to make the business case to make it work..
It turns out there are some good reasons to do so. Here are just a few.
Control Over Products and Quality
By reshoring, businesses have more control over product quality. Offshoring means little to no oversight over manufacturing By offshoring you are losing quality control opportunities and faster communication..
Skilled Workforce
The United States has millions of highly skilled workers. Certainly non-Americans are smart as well, but the United States has long been a hotbed of ingenuity. We built the biggest economy the world has ever seen for a reason.
Streamlined logistics
When you offshore manufacturing, your products are regularly in transit. If you discover a problem with a batch upon arrival, you are stuck with a multi-week supply of products that have left the source and not yet arrived at your facility.If there is an undiscovered issue that was not found in manufacturing, you now have a minimum of six weeks of problems – including storing and reworking defective products, lost revenue due to the disruption and managing an influx of customer complaints. By manufacturing domestically these problems disappear overnight.
Available and Affordable Resources
With the up and rising practice of reshoring, resources have become available and affordable. Another factor that has led to this is the fact that the U.S. is a leader in oil production; thus, many costs of the manufacturing process have significantly decreased.
Avoiding complicated taxes and tariffs
When offshoring became fashionable about 25 years ago, most businesses were willing to simply absorb the tariff costs. Now with ongoing trade wars, taxes and tariffs, we are seeing the financial advantages of offshoring manufacturing evaporate before our eyes.
Intellectual property protection
Intellectual property protections in the United States are far superior to those found in many other parts of the world. By keeping your manufacturing at home, you are keeping close control over your valuable IP and are significantly reducing your risk of having it stolen. And if it is stolen, the US has a robust mechanism to protect your intellectual property.
There are more listed HERE.