Recently, onshore manufacturing has been going through a resurgence in the U.S., with estimates that manufacturing account for $2.3 trillion, or 11%, of the GDP. Onshore manufacturing, is the process of manufacturing a good or product within domestic borders instead of outsourcing the job to a global manufacturer. It offers the company and its customers advantages, including faster shipping times with typically fewer quality control issues. Onshore manufacturing also yields a dependable supply chain adaptable to a company’s individual needs.
First, because onshore manufacturing involves creating goods domestically, it taps into the domestic labor force to make those products. While many manufacturing jobs were being sent overseas in the late 1970s to increase profits through cheaper labor, there has recently been a revival of onshore manufacturing. Punctuated by the recent global pandemic, where the success of a supply chain was closely correlated to the country’s success at managing the COVID response, many companies further understand the value of domestically manufactured goods.
This revival comes at a beneficial cost to the domestic labor force – it creates jobs. How many, precisely, depends on the manufacturing scale, but the U.S. Bureau of Labor Statistics estimates that there are nearly 13 million manufacturing jobs across the country as of December 2022.
As a result of the manufacturing plant being held within the borders of the nation, the elimination of overseas shipping typically results in shorter lead times. In the U.S., there are nearly 140,000 rail route miles and more than 164,000 miles of highways, all of which ensure the timely delivery of products. With overseas manufacturing, products must be sent across an ocean, typically on a barge, and cleared by customs before being dispatched via road or rail. Manufacturing products domestically expedites the process and allows reliably faster shipping.
Onshore manufacturing gives customers peace of mind that their products will arrive on time and in good condition. Because the products are created domestically, customer relationships with the manufacturer typically allows for quick remedies to any perceived issues with the product. Additionally, when a company relies on overseas manufacturing, the assumption is made that the same quality control systems are in place outside the domestic border, which is not always the case.
Due to the proximity of an onshore manufacturer, companies can provide specifications and request samples from the onshore manufacturers for speedier delivery of new products than would likely occur with an offshore producer. With those samples in hand, they can work with the manufacturer to ensure it meets all desired specifications before going into full production.
Onshore manufacturing is a dependable, streamlined way to manufacture products. It’s more efficient than offshore production because there are fewer choke points, which result in a more resilient and flexible stream of products. Because of this flexibility, companies can expand output capacity by 15-25%; this means less downtime and improved customer satisfaction.
Transportation costs are much lower, and there is little fear that companies will wait months before receiving their goods. With few exceptions, companies choosing onshore manufacturing know when products will arrive at their facilities.
The benefits of onshore manufacturing are clear: it’s more reliable, requires less risk and fewer headaches, and will likely cost less – all while delivering goods to customers faster. Onshore manufacturing is an excellent option for businesses of all sizes.
