The 1990’s were tough on American manufacturers. Large volumes of manufactured goods were ‘offshored’ to developing countries due to lower labor costs and the lack of environmental regulations, worker protection laws, and property rights protection. American industries – including iron and steel – felt the impact. Many communities lost jobs and their way of life during this huge move to outsource manufacturing.
But in recent years, incentives have started to change. There are now significant benefits to reshoring that business that has been previously sourced overseas.
Cost of Production, Control, and Quality
The cost of production in many developing countries has increased greatly, global environmental awareness has become a priority, and companies want better control over their supply chain. The U.S. manufacturing base is leaner and more competitive than it has ever been and domestic production is on the rise. Many businesses have seen that in 2017, it just doesn’t make sense to go through intricate global brokerage networks to procure components that can be produced domestically with better quality and reduced overhead. For the first time in decades, more manufacturing jobs are returning to the U.S. than are leaving.
The U.S. is a world leader in sustainable manufacturing. Recycled content of iron and steel products made domestically is often over 80%, which is not true of most ferrous components made in other parts of the world. Companies who value how their products are made and what it is made from are starting to consider sourcing domestically.
Other advantages of reshoring manufacturing include:
- Better quality control
- Reduced delivery time and freight cost
- Less inventory and shelf time
- Faster product development and component revision
- Less risk of loss of intellectual property
- Easier communication
- Marketing benefits of products ‘Made In America’
JR Hoe is one of those U.S. manufacturers that weathered to storm, continuously improved its operations and capabilities, and is poised to work with those casting end user that is looking to simplify its procurement process and get better control over its supply chain. Contact Us for any of your American made cast iron or steel fabrication needs.