Letter from the President: Why More Manufacturers Are Reshoring
Leave a CommentReshoring manufacturing jobs back to the United States from overseas is a trend we’ve been seeing over the past several years, and one that’s sure to continue into the near future.
According to a recent Boston Consulting Group (BCG) report, the U.S. gained 10,000 reshored manufacturing jobs in 2014, and hundreds of companies will follow suit in the coming years.
Reshoring is becoming more popular for manufacturers across the country as they recognize the true cost of working with offshore factories. Long lead times, poor communication, high transportation costs, huge shipping risks, lower product quality, and a closing wage gap abroad are just a few of the many factors pushing us towards a reshoring initiative.
In addition to declining conditions abroad, American technology and productivity are stronger than ever. In just a few years, there will be virtually no benefit or cost savings to keeping our manufacturing operations overseas, and soon we will see more products than ever, “Made in America.”
Some of the most impactful benefits of reshoring include:
Higher Quality Materials
Overseas manufacturing does not always guarantee the same quality standards like ISO, for example, with which domestic manufacturers are expected to comply. As a result, product quality can be lower in comparison.
Competitive Prices
In addition to the recent increased labor cost trend in China, overseas manufacturing naturally requires greater shipping costs. By moving manufacturing back home, we can reduce these shipping costs while maintaining wage expenses.
A Strong Economy
Reshoring creates more jobs at home and invigorates the U.S. economy.
Shorter Lead Times
Housing every step of production under a domestic roof increases agility and autonomy, which in turn cuts down on order lead times. The lengthy hassle of dealing with overseas shipping that can add weeks or even months to a product’s time to market will be avoided.
Here at Swift Glass, we’re proud to support the recent reshoring trend in American manufacturing and the positive impact it has had on our economy. Located in Elmira, New York, Swift Glass has provided industries across the country with glass fabrication services for nearly 100 years — and hope to provide the same level of service and quality for 100 more.
Thank you to all of our customers for their continued support of Swift Glass, and for customers everywhere who are creating more reshoring opportunities.
Sincerely,
Daniel J. Burke
President, Swift Glass Company
