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Kickstart: ‘Spooked’ Customers Want Local Suppliers

Kickstart: ‘Spooked’ customers want local suppliers

Kickstart: 'Spooked' customers want local suppliers

Reshoring has been a hot topic for years — maybe even decades. But now some hard numbers are showing that it’s a real trend, and not just a few anecdotal reports of production returning to North America. In a Nov. 2 report, consulting firm Deloitte said some 62 percent of manufacturers it surveyed have started reshoring or near-shoring production capacities, Bloomberg writes . The survey included 305 executives at transportation and manufacturing firms, mostly in the U.S. American companies expect to add 350,000 jobs through reshoring in 2022, a 25 percent climb from 2021, Deloitte says in its “Future of Freight” report. While companies have talked about the benefits of having production closer to home for some time, the COVID-19 pandemic, global shipping congestion and federal dollars for U.S. manufacturing of computer chips and electric vehicle parts pushed reshoring from the “maybe” column to “yes.” Mike McGaugh, CEO of Akron, Ohio-based plastics and rubber maker Myers Industries Inc., said in an Oct. 30 conference call with investors that customers are convinced that it is time to build more close to home . “I think the supply chain issues spooked some customers that we saw over the last two years or three years,” he said. “And if you can make it in the Quad Cities as an example vs. somewhere in Southern China, even if the costs are little bit higher on labor, the ability to have rapid feedback and rapid delivery, it means something to our customers. “And so [for] a reliable supplier that’s 300 miles away, we are seeing the quotes vs. a supply chain that’s 8,000 miles away.” Transit and packaging firm Signode may be more than 100 years old, but with the opening of a new “global flagship facility” in Roselle, Ill., the maker of polyester and polypropylene strapping is eyeing the future. “This facility is well-suited to support the … team now and for the coming years,” Eric Christensen, group president at Signode, said in a Nov. 2 in a news release marking the opening of the 360,000-square-foot facility. “This new space will allow us to better innovate and serve our clients’ needs for automation and optimized packaging solutions.” Signode is part of Crown Holdings Inc. and has 93 operations in 40 countries. The Buffalo Bills have had a hot season in 2022, currently leading the AFC East. But anyone familiar with the intense weather extremes in Buffalo, N.Y., know that the word “hot” doesn’t apply to conditions on the field as we move into winter. But special fiberglass bench seating with built-in heaters made by Cleveland-based Bourne Creations Inc., which does business under the trade name Dragon Seats, will make things a bit more comfortable this winter. “Built to combat the frigid temperatures of Buffalo, these state-of-the-art benches warm the players’ entire bodies, offer heated foot decks, which blow a steady stream of hot air upwards, and include ‘Hot Hats,’ which help keep helmet internal padding [in its best] condition in severe elements. Unlike a cold, rigid helmet, warmer helmet interiors can help protect players’ heads and body in freezing temperatures,” Dragon Seats said in a news release . The benches aren’t just equipped for cold weather. For teams in hot conditions, the company offers benches with built-in air conditioning and misting sprays.

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Daisie Hobson

Daisie Hobson is a Director at the Reshoring Institute and an engineer with many years of experience in manufacturing and project management.

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