Offshoring manufacturing has become increasingly expensive - and risky - and companies have found that the initial allure of lower labor rates for manufacturing abroad have had years of recurring and compounded inflationary cost increases due to hikes in labor costs, increased cost of living expenses, large swings in commodity prices, and unpredictable tariffs.  As a result, manufacturers are being forced to pay hidden costs that were never accounted for. 

Then Covid-19 hits the global supply, causing massive disruptions and significantly impacting the “long” supply chain. Transport costs surge by an order of magnitude. And for years post-Covid, there have still been wide swings in sea container costs, and a recent hike - yet again - in cost per container for transport.

This week, we have major port strikes from Maine to Texas, impacting 36 ports in the East and South-East of the US – what’s the impact? J.P. Morgan is estimating a $5B hit - per day - to the US economy.

If you have offshored over the last few decades and not assessed the risk in your “long” supply chain, it’s time to review your supply chain strategy. A recent Kearney survey found that 96% of CEOs are heavily considering reshoring their offshore operations, or, have already done so. 

Hynes Industries has helped our manufacturing partners explore options of both reshoring and onshoring manufacturing to the U.S. and has developed a white paper to assist with decisions in localizing the supply chain. We examine the challenges specific industries face as they target to reshore - or expand into – U.S. based production. Most importantly, we help identify strategies to “de-risk” the supply chain, while reducing manufacturing costs and maximizing supply chain performance.

Click here to download:

https://www.hynesindustries.com/the-benefits-of-reshoring-and-onshoring-for-us-manufacturers