Businesses have been considering reshoring and making their products in the US since before the pandemic. However, since 2020, this conversation has only been more prominent.
With supply chain issues and excessive tariffs and taxes, it is crucial for businesses to find the most financially suitable solution in order to get product in the consumers hands.
Over the years, this has not been a priority until it is. By not getting product on time or having to find short term alternatives very frequently, you are losing money, time and customers. So how do you fix this issue?
Overseas is not the cheaper option
With all of the product shortages we have been experiencing, receiving product from overseas is no longer the cheapest option.
Tariffs and labor costs have risen exponentially meaning more money out of your pocket as well as your consumer. Shipping costs, although slower than ever before, have also gone up over the past few years.
Not to mention even developing the product. Every piece of equipment, specific parts needed, and so much more all have to be transported overseas in order to create a final product.
With all of this in mind, creating your products overseas is no longer considered the cheapest option for you and your consumer in most cases.
Overseas is not the most reliable option
Availability has been a big issue recently. Parts are unavailable, shipping costs are too high to transport goods that are needed, and some parts may not even be in production anymore.
By having to find short term solutions frequently, you are losing money and time. Your goal should be to find a long term solution that negates the issue of unavailability.
Like most people, you probably need parts now. The easiest way to ensure easy access to product is to reshore your production line. This way, you do not have to stress about whether the parts for your product are making it overseas in a timely manner to inturn be shipped back to the US when a final product is available.
Hesitations on pulling the trigger
Reshoring means finding a new vendor. Business owners are hesitant to do so. What if they’re not reliable? What if they do not provide a good quality product? Although these are valid concerns, finding a reliable partner in the states that does not have to wait on parts from overseas and increase prices because of increased taxes and tariffs will prove to be the cheapest and most reliable option in the long run.
Another hesitation we hear in this space is that reshoring an entire company is quite costly upfront. Although it will cost you money upfront in order to reshore, the amount of money and time you will save, without all of the extra hurdles of shipping overseas, will save you greatly in the long run.
Every company is in a different situation. It is important to evaluate your pros and cons and perform a TCO comparison to make your decision. NEFM can help you navigate this process in order to make the best decision for your company.
NEFM can help
We know that this process can be daunting, so let NEFM take the pressure off your shoulders.
Don’t put off reshoring until it becomes a problem for your company. Taking care of this now will save you time and money down the line, and we make it easy.
All we need from you are the tools and molds associated with your product in order to get started. After we have that, we can give you the framework to make this decision, comparing your pros and cons associated with reshoring, including an ROI comparison.
At NEFM we are transparent with our partners and provide high quality services. To get started or to learn more about the reshoring process, contact us today!