Reshoring Impact: Companies Evaluating New Production Spaces

More manufacturing jobs came back to the U.S. than left in 2016, according to Reshoring Initiative’s Reshoring Report. The majority of the companies bringing jobs back to the U.S. were producers of transportation equipment, appliances, electrical equipment and plastic or rubber products.

Reshoring is the act of moving jobs, which had previously been offshored, back to the U.S. There are several motives for reshoring. Material Handling & Logistics pointed out that complaints of long lead times from U.S.-based consumers encouraged companies to rethink their manufacturing locations.

Additionally, President Donald Trump has stated his preference that manufacturers work toward reshoring efforts, and many companies anticipate policy changes that will make stateside production more attractive than continuing operations overseas, The Wall Street Journal reported.

Addressing reshoring challenges

Though there are plenty of good reasons to bring jobs back to the U.S., a move of such logistical consideration isn’t done easily. Relocating operations requires a company to seek out a good location, hire new employees and ensure the new location is operating smoothly. In doing so, making certain that all equipment is functioning properly can become a challenge for, especially once production is expected to begin again.

The Wall Street Journal relayed the story of one small manufacturer, GAM Enterprises Inc., which makes precision mechanical components for factory automation and began moving jobs from Germany to the U.S. in 2014. GAM struggled to find an employee who knew how to operate small-batch production technology. When it finally found a match, the company had to provide several months of on-the-job training. It was also a very expensive endeavor. GAM spent close to $4 million in its relocation efforts.

Obstacles like this are to be expected when uprooting operations in one locale and transplanting them elsewhere. These challenges need to be handled carefully and intelligently.

Enlisting the help of Miner Corp can help manufacturers review their new equipment, make sure it’s properly installed and set up a facility maintenance plan. These are all cost-effective strategies that will keep the plant running smoothly, with little chance of an unexpected equipment failure holding up production. A professional inspecting equipment prior to production can be especially helpful in instances like GAM experienced, where the machinist went through months of training before being able to operate the equipment. By hiring a professional through Miner, equipment can be reviewed through the eyes of an expert.