Traditional American manufacturing activities are slowly returning from overseas. Whether the decisions to do so were initially based on rising costs abroad, the need to react quicker to American consumer demands or other reasons, many U.S. manufacturers are experiencing more benefits than initially considered. Here is a look at what it takes to drive the reshoring trend ahead and what companies can gain from these efforts.

Have a Firm Understanding of the Benefits of Reshoring

Smart investors understand reshoring. They know the benefits and communicate those benefits to business partners. Implications for the national economy such as an increase in jobs and tax incomes are obvious. What about implications for individual businesses? The following list outlines some key company benefits of bringing manufacturing jobs home.

  • It saves money. Reshoring reduces the cost of company ownership. For starters, cheap labor is more elusive as global wages rise and developing countries adopt labor laws.
  • It helps with customer service. As times change, customers no longer prefer cheap and bulk products. And they prefer quality customer service. In this regard, local manufacturing companies have an advantage. These companies are able to respond to customer demands faster and build lasting relationships.
  • It improves product quality. For reasons above, reshoring means higher quality products. Companies have tighter control over the production process. They are able to make needed adjustments easily.
  • It means more innovation. The old world of manufacturing centered around a few select hubs. With the help of reshoring, today’s manufacturing is more diverse. Manufacturing facilities are able to cluster near research and development facilities.
  • It’s better protection for intellectual property. Regulations are standardizing. As companies move merchandise from ports and competing jurisdictions, the more at risk intellectual property becomes. Reshoring maintains strong regulations and keeps merchandise local.
  • Promote "Made in the U.S.A."

    Many manufacturers are promoting “Made in the U.S.A.” After a global recession that crippled local economies, the “Made in the U.S.A” label has an even stronger meaning than before. It’s a point of pride for consumers.

    Similarly, it represents unmatched quality. Buyers have spent decades surrounded by “Made in China” labels. They’ve grown weary of these products. Now, more than ever, is the time to promote the “Made in the U.S.A.” label.

    Start Training Now

    A lot has changed in the years manufacturing was first sent to Southeast Asia and other far corners of the globe. The industry has changed. Markets have changed. Jobs themselves have changed. Companies must brace for a new economy. It takes a new kind of training and recruitment to fill returning jobs. Below are a few tactics companies use.

    • Outreach to schools. High schools and colleges are eager to send grads into the economy. Some businesses are getting an early foothold in schools by sponsoring educational programs. Similarly, businesses use career fairs to explain the changes in manufacturing to potential recruits.
    • Scholarships. Perhaps one of the easiest ways to grab job applicant's attention is to help fund their education. It provides good publicity for the company and promotes jobs in manufacturing. It is also an effective way to screen potential employees.
    • Veterans. It is important for companies to recruit and train veterans. It is a good practice for the veteran, business and country.
    • Self retraining. Now is the time to get informed about the economy and future jobs. Staying educated in these areas will provide companies with the knowledge to recruit properly.
    • Build a New Business Plan that Considers the Effects of Reshoring

      A company should restructure its business plan to take advantage of the new manufacturing environment. It may no longer be profitable to do business from old manufacturing hubs. Companies value customer service; therefore, it pays to go local in business and marketing efforts.

      Advertise Your Edge

      Local manufacturers encouraging the movement of reshoring are gaining an edge in the marketplace. Perception is everything. Companies should share both strategies and success stories that encourage the movement of reshoring. Since economic cycles are perpetual, companies have more control over direction than they think.


      Steve Yoder
      About The Author Steve Yoder
      Steve Yoder is Vice President of National Accounts for Minerallac, a family-owned American manufacturer and distributors of electrical construction and safety equipment located in Hampshire, IL.

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