Reduced supply chain risk … lower transportation costs... decreased carbon footprint… increased productivity … less exposure to impending overseas wage increases … increased manufacturing agility … lowered risk of intellectual property theft … reduced quality control concerns … increased ability to rely on “just-in-time” production schedules …
The driving forces behind the current shift towards “manufacturing onshoring” are many and complex. But the fact is, this trend identified and outlined last year in the Boston Consulting Group (BCG) report “Made in America, Again: Why Manufacturing Will Return to the US” is a growing one (with big name companies such as Master Lock, Coleman, Caterpiller, Ford, GE and Whirlpool taking part).
Of course, when it comes to major transitions, such as moving manufacturing operations to the U.S., making the right decisions along the way is imperative to success. And one of the first and most important decisions to be made is to determine whether to bring those operations in-house, or to utilize a partner who can also give you the benefits of supply chain efficiency and quality control.
So how do you make the best decision for your business? Moving operations in-house may seem like a logical solution – one that provides a sense of increased control and productivity – that is until you take into consideration factors such as the cost of underutilized specialized labor and equipment, not to mention infrastructure set up and maintenance costs.
It’s not an easy choice.
That is precisely why, at TEQ, we often work with potential clients to help them understand the true cost of captive manufacturing operations, as well as help them evaluate, redesign and manage entire supply chains.
What are the factors do you think must be considered when “moving to America?”