Over the last half-century, US companies have been offshoring as a means of cutting costs by outsourcing manufacturing, IT and customer service to Asia, Mexico and Canada. While this model might at first seem like a simple solution to the constant challenge to drive down costs, the end result doesn’t always justify the means.

Buckley has been leading the charge to encourage more companies to reconsider bringing that manufacturing work back into the US by way of direct sourcing or takeover work. Following are several key benefits that you need to consider when researching reshoring:

• Dependability: Western corporate culture was single-handedly responsible for the industrial revolution. US productivity and efficiency levels are among the highest in the world. Conversely, Asian and Pacific Rim countries generally take off one month each year for holidays with an estimated 40-60% not returning afterward.
• Distance: Reshoring brings manufacturing closer to the point of sale. This enables companies to consolidate their supply chain, better oversee production, reduce transportation costs and streamline new or changing product lines. There is also less inventory investment due to a more reliable supply.
• Speed: Related to distance and compounded by the US working culture, the time from concept to design to production is much shorter for companies that reshore manufacturing. When submitting new product designs, product changes or revisions to overseas suppliers, it can take anywhere from 45-90 days to return a first article. Then, if the first article is correct, it can take another 45-90 days for the first production run to be returned.
• Quality: Reshoring provides access to a more skilled workforce, improving communication and reducing the risk of manufacturing error. In addition, US regulations and recognized quality standards drive expectations throughout the production process. This results in a higher quality product.
• Labor: Reshoring allows for a much simpler management cycle, streamlining communication and reducing key personnel travel time. In addition, as foreign wages in developing countries rise, the overall labor costs associated with manufacturing have been equalizing as a share of the total cost of manufacturing.
• Brand Image: The “Made in the USA” label is held in high esteem by consumers who understand the importance of maintaining a proper work/life balance. It represents opportunity and pride in a job well done as we keep jobs in the US and work together for the benefit of fellow citizens.
• Stability and Consistency: Strict US corporate regulations ensure the long-term stability and consistency of your home-based manufacturing companies. In contrast, if your Asian supplier grows, they may broker your production to another provider, moving control of production even further out of your hands. Unfortunately, this is usually not transparent and problem awareness can be significantly delayed in the process.

While the temptation to “follow the crowd” to foreign manufacturers might seem hard to resist at first, companies are starting to analyze the total cost of manufacturing and realizing that the potential labor savings (which are disappearing) don’t justify the issues associated with offshoring.

When you work with a US-based company like Buckley, you avoid and eliminate the above-mentioned challenges and enjoy complete benefits, including:

• Less Risk
• Less Time
• Peace of Mind
• More Income
• Faster Turnaround
• Less Inventory Investment
• Better Results
• Better Customers/Happier Customers

If you have a product that you’ve been considering bringing back onshore, contact Buckley at (513) 821-4444 to discuss your concerns and the true and total costs of your project.