International trade tensions and pandemic-related developments have brought heightened awareness to reshoring. US-China decoupling has American manufacturers reviewing all of their overseas relationships, and 69% of respondents to a recent Thomas Industrial survey indicated they “are likely to bring manufacturing production and sourcing back to North America.”1
Given the unstable political and public health environments, it’s hardly a surprise that the majority of American companies in the manufacturing and industrial sectors are considering decoupling. In fact, about one-third of company leadership teams have already moved manufacturing out of China, or have action plans in place to do so within the next two to three years.1
Central to a new product development program (NPD) is the budget, and exploring economic efficiencies often leads to a debate between offshoring and reshoring.
In most instances, overseas costs are particularly attractive compared to domestic production of custom injection-molded components for consumer applications.
However, in light of the coronavirus (COVID-19), the world is functioning within a new normal. Bottom line decisions are no longer black-and-white as the pandemic complicates — and often upends — supply chains, adding project time and cost. Quickly, the offshore injection molding "bargain" becomes a candidate for reshoring.
Outsourcing has long been a practical solution for manufacturers looking to keep budgets in check. Low-cost countries generally provide attractive price points for labor and products, especially when compared against those charged in North America. The lower the cost, the higher the competitive advantage.
The past several weeks have seen a whirlwind of collective emotion. The impact of COVID-19 is challenging all of us to reassess our priorities, appreciate things we tend to otherwise take for granted, and do our parts to protect each other by staying safer at home.
The global pandemic has North American manufacturing reeling. Nearly half of suppliers report shipping and logistics disruptions, with 35% also registering incidents of offshore factory suspension and/or production restrictions.1
OEMs regularly face an important decision: use a supplier from overseas or partner with a US-based supplier.
Why is this so important? Because if your supplier is somehow incapacitated and deliverables are delayed, your orders go partially or wholly unfulfilled. That has a negative ripple effect on your customers and your reputation. This is evident from Thomas' March Industrial Survey, which saw a reduced desire from US manufacturers to source internationally (43% in February to 34% in March), and increase in those looking to source from North American manufacturers (47% from 43%).
MD&M West in Anaheim recently wrapped up, and I’ve had some time to reflect on one of the key panel discussions: Exploring the Connection Between Your Manufacturing Process & Patient Safety.
How expensive is injection molding? It's a common question, and it's also deceptively simple. Any injection molder can quote you a price. Since you expect to pay for the service, it's not necessarily a matter of understanding if or even how much you'll invest injection molding.
Rather, knowing when to strategically invest in the process is key in managing the cost of injection molding to achieve exceptional outcomes.
What does 2020 hold for the plastics industry? Several trends that emerged in 2019 continue to be refined and amplified: