From fitness equipment producers to electricity and power companies, manufacturers are looking to simplify their supply chain logistics and reduce overall costs by reshoring. In fact, a Thomas Industrial Survey earlier this summer revealed that 64% of manufacturers report they are likely to bring manufacturing production and sourcing back to North America — a 10% increase from the same sentiment reported earlier in the year.*

Why the new interest in reshoring? According to the Thomas survey, the underlying cause is the COVID-19 pandemic, which has ravaged global supply chains and disrupted manufacturing and shipping concerns.

“We’re seeing that global trend play out here in La Crosse,” confirmed DuraTech Sales Manager Paul Hatlem. “We’ve had many customers come to us recently, saying, ‘I need a reliable supply chain, can you help us bring our production back to the U.S.?’”

So many companies have turned to DuraTech for help in reshoring that, in the last four months, the company’s printed electronics department has grown by nearly 300%.

Reasons for reshoring

Decades ago, manufacturers, looking to reduce expenses, relocated their operations overseas to countries with lower labor and production costs (aka – offshoring). The benefits that offshoring provides, however, don’t come without risk. For example, supply chains can be disrupted by anything from regional political upheavals to natural phenomena like earthquakes, storms and, yes, pandemics.

“We’re seeing that right now in the midst of COVID-19,” Hatlem said. “I mean, when China shut down because of the pandemic, nothing moved.”

In addition to a more stable supply chain, reshoring usually means engineering changes can be made more easily. “The top two reasons our customers reshore are consistency of delivery and ease of engineering changes,” Hatlem said. “For example, re-engineering and producing a membrane switch in a different country where English is not the dominant language is going to be more difficult than working with someone in the same or similar time zone who speaks the same language.”

Other benefits of reshoring include quicker turn around and delivery times, reduction in transportation and shipping costs, and averting complicated customs and federal restrictions on products entering the U.S. from other countries.

DuraTech can help you reshore

As experts in printed electronics, in-mold structural electronics (IMSE®), in-mold decorating (IMD), graphic overlays and more, DuraTech is ready and able to assist OEMs and other industrial businesses to reshore their operations.

“Reshoring really is not that difficult from our perspective, especially when it comes to membrane switches and other printed electronics,” Hatlem said. “It’s as simple as sending us your blueprint. We source the same materials as locally as possible, then produce parts here that are equal or better quality to the parts you’ll get in lower cost countries.”

Domestic production still might cost a little bit more than manufacturing overseas, Hatlem admitted. “But, we’re not 30 percent more expensive anymore, and the tradeoff is worth it for companies that want a more stable supply chain and more reliable delivery times.”

For those who still need to rely on overseas production, DuraTech offers the option to outsource parts to Beijing, where the company has a manufacturing site. “We give customers the option,” Hatlem explained. “If price is a critical consideration, we can engineer a part here and then offer to manufacture it in China. But if they’re looking for quicker turnarounds and a more stable supply chain, we recommend the U.S.”

To learn more about DuraTech’s reshoring capabilities that will help you meet your most challenging, high-quality, close tolerance production requirements – on time and within cost – contact us today.