In today’s competitive environment, original equipment manufacturers (OEMs) seek to strengthen their supply chain while maintaining excellent quality. To achieve this, many companies are relocating manufacturing closer to home. This process is known as reshoring.
Over the past several decades, many North American OEMs transitioned manufacturing offshore. These operations typically went to locations in Asia, such as China, to take advantage of perceived lower costs.
Reshoring is the opposite of offshoring and simply brings manufacturing back overseas. While some costs may be lower with offshoring, many OEMs realized that reshoring is much more competitive. It becomes an attractive option when considering the total cost of ownership and brand reputation.
On-going global trade tensions, geopolitical instabilities and COVID-19 have resulted in significant disruptions and strains on supply chains. OEMs seek more localized suppliers to address these uncertainties to create a more robust supply chain with fewer risks.
Reshoring manufacturing to the US is an ideal solution.
THE BENEFITS OF RESHORING MANUFACTURING
We have three state-of-the-art manufacturing facilities in the US with distribution networks across the Americas.
Note that all of the advantages below result in production efficiencies and cost savings. They also come with lower supply chain risk for OEMs.
SUPERIOR QUALITY
Many North American OEMs seek reduced quality risks and an alternative to offshore manufacturing. Reshoring with a US contract manufacturer offers North American OEMs more reliable and higher-quality products. This translates to a higher-value manufacturing solution with reduced risk.
The US has strict standards and has earned a reputation for manufacturing very high-quality products for various industries. RIS, for example, is a contract manufacturer based in Minnesota and serves various high-quality products in markets worldwide.
EXCELLENT PROXIMITY TO THE US AND CANADA
As noted, RIS is in the Midwest of the US. People can easily travel to most locations in North America in a few hours. In contrast, most flights to Asia take a day.
Additionally, the time differences across North America are manageable, allowing similar work schedules between personnel and manufacturing locations. A considerable advantage to partnering with a US contract manufacturer compared to Asia with a 14-hour time difference.
This becomes especially important when dealing with urgent matters that cannot afford a delay.
STREAMLINED LOGISTICS
Issues with the supply chain have only amplified these benefits in recent years. During 2020, significant travel and logistics delays with goods from Asia occurred. Shipping costs skyrocketed in 2020, specifically container freight rates, due to logistics disruptions caused by the pandemic.
Reshoring with a US contract manufacturer streamlines logistics for OEMs. This reduces the risk of logistics delays and cost spikes. It also secures brand reliability and consumer trust.
LESS INVENTORY ON WATER
A real-world example of these issues played out at ports across the globe. Due to logistics disruptions caused during the COVID-19 pandemic, ports observed massive pile-ups of container ships. These delays took months to resolve, resulting in enormous product delays.
Reshoring with a US contract manufacturer solves the inventory on water problem by decreasing the time spent in transit. This improves speed to market and ability to rapidly respond to changing market conditions and customer demands.
RESPONSIBLE BUSINESS
One advantage of partnering with a US contract manufacturer is the value it places on its workforce. US auditors enforce labor laws, and there are limits on how many hours personnel can work each week. There are also restrictions that ensure a safe work environment.
Additionally, there are laws to ensure the quality and traceability of raw materials for manufactured products. Unfortunately, you cannot say the same about many countries in Asia.
Companies doing business in the US know the workforce is cared for and their reputation is not at risk.
Reshoring manufacturing to the US offers many benefits and makes good business sense. The team at RIS is well-positioned and ready to serve as America’s reshoring partner. We employ more than 350 people and provide a myriad of manufacturing services to OEMs across the world.
Contact our team today to learn more about our range of contract manufacturing solutions.
About RiverSide Integrated Solutions:
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Dedicated Program Team
- Extensive supply-chain network for efficient parts procurement and kitting
- Subassembly and full box-build
- Warehousing and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
