What is Reshoring?
Reshoring, also known as onshoring, is the process of moving all or some of the manufacturing operations from overseas countries back to the United States. Changes to tax laws, labor costs, transportation costs, IP security and national sentiment have resulted in a trend to bring manufacturing back to the United States.
Why Consider Reshoring?
- Increases in shipping and transportation cost to the U.S.
- Rising labor costs in foreign countries
- Reduced inventory cost by compressing the supply chain
- Greater flexibility and responsiveness with local suppliers
- Risk of loss of control of Intellectual Property
- Unexpected supply disruptions due to government actions
- U.S. Government imposed tariffs on imports
- High cost of rejects for quality concerns
- Improved communication and service
- Made in the USA
How Do I Calculate the Total Cost of Ownership?
Reshoring Now has created a free Total Cost of Ownership (TCO) calculator that considers 30 variables. The calculator provides the current TCO and a predicted TCO 5 years out. The TCO provides an analysis of 17 different country specific calculations.
Considerations For Reshoring Injection Molding
Reshoring manufacturing, and specifically injection molds, requires careful planning. It is important to make sure that you know the specifics of assets being transferred to avoid supply disruptions and additional costs that can be mitigated with good planning and communication. For the overseas supplier, it is important to make sure you obtain all the engineering files, tooling specifications, production and process data. For the domestic supplier, it is important that you have fully qualified the capabilities and capacity of the supplier(s) receiving the manufacturing and tooling. Do they have proper documentation control and technical resources? Do they have the proper sized tonnage, barrel size, and capacity on molding machines? Do they have tooling resources to repair, modify and support production resources? For projects that have automation and secondary operations, does your supplier have the technical resources and capabilities to assume responsibility for these operations. This preliminary checklist will help highlight critical items to a successful tool transfer.
Why Texas Injection Molding?
People – A business is only as good as it people. Our people provide value to our customers by delivering creative ideas and innovative solutions. As such we seek to build our team with people that share our Core Values and have strong plastic engineering, technical and interpersonal skills.
Process Control – Controlling the manufacturing process is critical to provide for the management and reliable growth of the operation. We are certified to ISO 9001-2015 standards and utilize best in class ERP systems to control and support information management, manufacturing processes, quality systems, inventory, safety, environmental and other systems necessary to provide our customers defect-free products to committed delivery dates.
Technology – Talented people and great systems can only deliver quality injection molded parts on-time with reliable technology. We are committed to maintain modern injection molding equipment, necessary auxiliary equipment, and supporting quality laboratory and injection mold maintenance and repair resources to support molding production.
The “Secret Sauce” or “magic in the bottle” that makes any company a great place to do business with and a great place to work is culture. We work very hard to wrap our strategy of People, Process and Technology with a culture where team members genuinely care for each other. When we care for each other, everything takes care of itself. We care for our customers, our equipment, our facilities and create an atmosphere that is an attractive and enjoyable place to work and do business.
For more information please call us a 281-489-4292 or use our contact form.