October 6, 2024

Onshoring is the process of bringing production and other related activities back to the home country, and it can be a great option for businesses looking to reduce costs and increase efficiency. This article explores the various ways onshoring can help a business, including increased control over production, better access to skilled labor, and improved communication.

The Manufacturers Association for Plastics Processors (MAPP) has recently released expectations that 54% of plastics processors see their customers reshoring. This marks the start of a new trend, reversing almost 20 years in the direction of offshoring.

Improved Quality

By onshoring, businesses can better control the quality of their products and services. Onshoring allows for closer supervision of production processes and can help ensure that products and services meet the desired standards. It also increases the likelihood of compliance with industry regulations and standards.

Increased Productivity

By onshoring, businesses can take advantage of shorter lead times and increased efficiency. This leads to higher levels of productivity and can help reduce costs. Onshoring also allows businesses to benefit from the latest technology and processes, leading to further improvements in productivity.

Cost Savings

Onshoring can result in significant cost savings for businesses, as it eliminates the need to pay for overseas labor and transportation costs. It also eliminates the need to pay for additional taxes and fees associated with outsourcing. Onshoring can also reduce the cost of labor, as domestic workers tend to be cheaper than overseas ones.

Strengthens Domestic Manufacturing

Onshoring helps to revitalize domestic manufacturing industries. By bringing production back home, companies can take advantage of local expertise, infrastructure, and resources. This can lead to improved product quality, reduced transportation costs, and faster time-to-market. A strong domestic manufacturing sector contributes to the overall economic stability of a country. It reduces reliance on imports, enhances national security, and promotes innovation and technological advancements.

Supports Small and Medium-Sized Enterprises (SMEs)

Onshoring provides opportunities for small and medium-sized enterprises (SMEs) to participate in the supply chain. When larger companies bring their operations back home, they often seek local suppliers and partners to support their production processes.This opens up new markets and business opportunities for SMEs, allowing them to grow and expand. As SMEs thrive, they contribute to job creation, innovation, and economic development in their local communities.

Reduces Environmental Impact

Onshoring can help reduce the environmental impact associated with long-distance transportation. By producing goods closer to the consumer market, companies can minimize the carbon emissions generated during transportation. Additionally, onshoring promotes sustainable practices and regulations in the home country. Companies are more likely to comply with environmental standards and regulations when operating in their own country, leading to a cleaner and healthier environment.

Improved Risk Management

By onshoring, businesses can better monitor their operations and manage risks associated with outsourcing. Onshoring can also reduce the risk of IP theft and ensure compliance with data protection laws. It also ensures that businesses have greater control over their production processes and can better respond to customer needs.

There are many other examples of onshoring’s advantages to plastic product manufacturers. The availability of certain resins in certain quality ranges is much better onshore. Local companies are much more likely to use transportation options like truck and rail, making it more cost effective to transport smaller shipments and reducing the carbon footprint. Perhaps most importantly, it creates jobs for those in your local community instead of shifting the wealth somewhere else.

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