This week’s guest blog is from Rebecca Kennedy from http://www.omega1.com. OmegaOne started as a domestic manufacturer of stainless steel hydraulic fittings. Through the globalization of manufacturing the company remained focused on domestic manufacturing while others sourced product overseas. The company has remained competitive focusing on specific markets that are not as price sensitive and where domestic product is preferred. Low cost product from foreign (primarily Asian) have driven prices down making for a much more price sensitive and commoditized market place. The strength of OmegaOne is product quality, competitive (domestic) pricing, responsive manufacturing, diverse inventory of hard to find items and responsive sales and customer service.
In recent years, there has been a strong push from both American consumers and American businesses to bring manufacturing back home to the U.S.
This growing interest in “reshoring” isn’t surprising: Following the offshoring movement (the process of sending jobs from the U.S. to foreign countries with cheaper labor) that began in the 70’s and 80’s, the American economy has experienced its fair share of downturns and setbacks, including increased unemployment and weakened global competitiveness.
Check out these 5 undeniable benefits of manufacturing reshoring that can’t afford to be ignored.
1. Reshoring means higher quality products for consumers.
Foreign manufacturing is all about offering the cheapest solutions on the market – cheap labor, cheap tools, cheap technologies, and cheap processes.
Cheap manufacturing was all the rage several decades ago, but American consumers have begun to grow tired of poorly made (and sometimes even unsafe) goods produced in countries with lax manufacturing laws.
Today’s consumers having a growing interest in quality and value – areas where American-made goods rank at the top of the pack.
2. Reshoring helps keep the U.S. innovative & competitive.
Due to the previous shift towards overseas manufacturing, the U.S. has fallen off the bandwagon in terms of innovation and creating breakthrough technologies and solutions through research and development.
Countries that are heavy in manufacturing like Singapore, China, Korea and Japan have pushed their way to the top, in terms of global competitiveness through manufacturing innovation.
By bringing manufacturing back to the U.S., more and more U.S. companies will feel pressure to invest in R&D and get back in the global innovation game.
3. Reshoring allows for greater control of production processes.
Outsourcing products to overseas manufacturing plants means putting your full trust in their ability to manufacture products that meet your standards.
However, many foreign nations have significantly less rigid laws in place for product standardization and quality assurance, safe and fair working conditions, and environmental