Bringing Manufacturing Back to the US: How Our Economy Can Benefit from Reshoring

In recent years, a significant trend in manufacturing has developed, with more companies choosing to return production to the United States. Some of the major contributing factors are:

The rising costs of overseas labor
Significant rise in shipping costs
Increased demand for higher-quality products

The rising labor cost in some countries where companies previously outsourced jobs has changed the dynamics. As wages and benefits rise in countries like China, India, and Mexico, it becomes less cost-effective for companies to produce goods or provide services in these locations.

Shipping costs went up significantly during the pandemic. They have stabilized in certain regions but remain high in others. For example, a container from Asia pre-pandemic ranged around $3500 and rose as high as $20,000 during the pandemic.

Another reason is quality control. Many American companies have experienced issues with quality control when outsourcing production to other countries. By bringing jobs back to America, they can have greater control over the manufacturing process and ensure that products meet their high standards.

In addition to the abovementioned factors, companies can benefit from improved customer service, better control over their supply chain, and access to a larger, more diverse talent pool. For customers, this means that they can enjoy better quality products and faster delivery times.

The return of manufacturing to the US results in thousands of new jobs and provides a vital boost to the US economy.

“The United States is now on track to bring 350,000 overseas manufacturing jobs back to the states, according to a new report from the Reshoring Initiative. Supply chain issues caused by the pandemic and the war in Ukraine are pushing many executives to bring their businesses closer to home.“
News Nation - Aug 22, 2022

Overall, the return of manufacturing to the US is providing several benefits to companies, customers, and the US economy. It is clear that this trend is here to stay and will continue to positively impact the US economy in the years to come.

Are you prepared?

The manufacturing industry faces several labor and supply chain shortages. The increased demand for goods due to the rise of e-commerce and digital transformation has also strained our industry's resources.

Additionally, supply chain disruptions due to geopolitical events, natural disasters, and other factors have led to a shortage of raw materials and components needed for production.

As a result, companies must find creative solutions to address these challenges, such as utilizing automation in production environments.

5 tips why your manufacturing company needs to automate CNC Coolant Systems:

Automated CNC Coolant Systems can help reduce labor costs by taking on tasks that would otherwise require manual labor.
Automation can increase accuracy and precision in CNC Coolant Systems, resulting in improved product quality and fewer costly mistakes.
Automation can keep production running more smoothly, as the machines can run with fewer interruptions and delays.
Automation reduces waste, as machine settings can be optimized and adjusted to maximize efficiency.
Automated CNC Coolant Systems can help increase safety by reducing the need for manual labor and the risk of hazardous working conditions.

Why can automating your coolant process help your business succeed and reach its goals?

Automating your coolant process can help your business succeed and reach its goals in many ways. Firstly, automating the coolant maintenance and monitoring process can help save time and money due to improved efficiency and reduced labor costs.

Additionally, automated coolant systems can help to identify potential problems or issues before they become serious, allowing you to take preventative action and avoid costly repairs or downtime. They also reduce the risk of human error and provide more accurate and consistent results.

Finally, automating your coolant delivery process standardizes operations, resulting in more reliable performance, better quality control, and increased customer satisfaction along with a higher quality finished product.

The Dazzle Systems by Zebra Skimmers is a solution that can be customized to your organization's production needs. Zebra can build the perfect automated coolant delivery and monitoring solution - from small machine shops to lights out manufacturing facilities.

If you have any questions, please contact us at 440.528.0699 and speak with one of our experts.