Historically, many US companies have outsourced projects overseas to enjoy the benefits of lower price points in tooling and labor. This has increasingly become problematic for companies. Shipping and supply chain shortages negate the benefits, making outsourcing overseas far more complicated than returning jobs to the states. Here are just a few reasons why businesses are bringing their work home.
What is Reshoring?
In our industry, this refers to reversing the trend of outsourcing jobs to overseas manufacturers. While initially outsourcing made financial sense for these industries, rising transportation and labor rates make this option less cost-effective. In addition, companies that use US-based manufacturers often qualify for tax incentives.
Why is it a Better Choice?
Bringing manufacturing to the US is a great way to support our economy. It also eliminates communication issues and allows for unexpected updates to your project to be handled promptly. Another reason to use a US-based fabricator is to improve your brand image and messaging. Below are more ways your business benefits from partnering with a US-based company.
1. No More Delays Due to International Barriers or Events
Whether it’s a language barrier or a wide timezone discrepancy, outsourcing can cause delays, miscommunications, and mistakes. In addition, a country’s internal struggles or international events on the world’s stage can significantly derail your business’ ability to receive finished products on time.
2. Improved Quality
The very reason companies choose to outsource their work––lower costs––is the same reason the finished products are not consistently high-quality. Low wages and increased working hours for international labor forces mean workers are more dedicated to quotas than consistency, frequently working in less than optimal conditions, and not typically focused on the end quality of their craft.
Additionally, overseas materials are frequently of a lower, inconsistent grade that can adversely affect your products’ end result and reputation. By contrast, the US provides oversight, specifically around quality control standards.
3. Streamlined Distribution
One of the most significant cost factors of producing goods overseas is shipping and distribution. With global fuel prices at a record high, transportation costs are increasing exponentially. US production mitigates some of these prices, making getting your goods to their destination more affordable. Streamlining deliveries also means less opportunity for breakage and lost or delayed shipments.
4. Increased Control Of the Production Process
Outsourced manufacturing is far out of the span of US control, meaning there is no accountability for unsafe working conditions or production procedures that don’t meet the United States’ stringent environmental regulations.
5. Bringing Job Opportunities Back Home
Perhaps one of the biggest advantages of reshoring is increased job opportunities for Americans. And bringing jobs back home is good for supply, great for employment, and lifts areas in need of economic development.
EDCO Fabrication is Proudly US-Based
Since 1959, EDCO has proudly been providing industrial manufacturing services right here at home. We specialize in laser cutting, forming, and welding as well as powder coating and painting for a wide variety of industries across the US. No project is too big or too small for our talented team at EDCO. It’s time to bring fabrication home again; let EDCO show you where to start.