Top Considerations for Reshoring Manufacturing Operations

Top considerations for reshoring manufacturing operations for business in 2021.To mitigate further operational plan disruptions many businesses are looking at reshoring manufacturing operations.

With the global impact of COVID-19, companies are feeling the impact on their operation in many ways and can be difficult to assess and create new strategies for success. “The pandemic, now in its second year, has severely disrupted supply chains. The ISM noted that companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus impacts limiting availability of parts and materials.” (Reuters)

With supply chains being disrupted, businesses have developed new strategic responses to address the issues in the marketplace. Most products that are produced overseas, especially in China, have had major impacts on available inventory.  Material shortages coupled with higher labor costs in China have led to increased costs. Below are three questions to ask yourself if you are considering reshoring your manufacturing.

Would your customers pay more for a ‘Made in the U.S.A.’ product?

Consumers have made a dramatic purchasing shift from looking for the best price to domestic production. Where once price was king, many consumers now take into account where a product is made. While domestically manufactured products traditionally cost more, in today’s marketplace, consumers are willing to pay more for ‘Made in the U.S.A.’. There are a number of factors that have led to this consumer purchasing shift, such as: supporting local jobs, environmental costs and overall quality. The consumers of today understand that there is more to a product than a low price and are willing to pay more for quality and peace of mind.

Have you looked at the regulatory certifications needed to fully produce your product domestically?

Manufacturing requires a diverse array of resources that range from raw materials, logistics, qualified labor/expertise, and facility. There are many points along the way that are heavily regulated to meet quality, health and safety standards. While these standards are to protect consumers in the marketplace, they can be real hurdles for small businesses.

In order to re-shore manufacturing operations, you must be sure that you are prepared for new and necessary regulatory certifications based on your industry standards.

Are there tax credit available in your industry for reshoring initiatives?

For years now the United States has been making it easier for businesses interested in reshoring manufacturing operations. One way of doing this is by offering tax credits to businesses that successfully move their operations. This is a great way to cut down on expenses while making the shift. A certified accountant will be able to help you research tax credits available to your business.

Reshoring manufacturing operations is not a small undertaking, but with the right guidance and foresight it can be successfully accomplished.

This blog post is a part 2 of 2. Read the first post here: The Current Supply Chain Crunch.


3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.

Subscribe to the 3D Innovations newsletter on our Facebook page!

Connect with us on TwitterFacebook & LinkedIn today.

July 2024

Most Viewed Posts

BabyToon Testimonial

error: Content is protected !!