Tag Archive: industrial production

Reshoring: Is It All Hype or Action?

September 20th, 2020

According to a Thomas survey about COVID-19’s impact on U.S. manufacturing and industrial production, 64% of manufacturers are likely to bring production back to North America. It has gone beyond talk to action. Clients and colleagues are seeing an increase in inquiries related to reshoring and expanding manufacturing capabilities.

Even before COVID-19, executives were interested in reshoring. The total cost has come into alignment (and is often preferred) in North America for non-commodity products. Tariffs exaggerated the situation, prompting executives to consider the investment of capital to repurpose, expand and build manufacturing capabilities. When inventory carrying costs, transportation costs, intellectual property costs, management and overhead costs, logistics costs and many others are considered, the equation often flips on its head. Excess inventory also ties up cash unnecessarily.

Although costs are relevant to remain competitive in the global economy, it is even more compelling when executives look at the customer side of the equation. In today’s Amazon-impacted, fast-paced environment, customers expect immediate delivery of customized products and services with the ability to change orders based on the latest customer and consumer requirements at the last minute. The last mile has become the last minute. In fact, customers not only expect to change orders while products are out for delivery, but they also expect easy returns and replacement products as a typical standard of service.

Continue reading….. on Brushware or LMA and watch our video on reshoring (also below).

Read more about product supply strategy and related concepts in our eBook, Future-Proofing Manufacturing & Supply Chain Post COVID-19. If you’d like a rapid assessment and recommendations for your situation, please contact us.

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Manufacturing is at a Peak!

December 29th, 2017

Supply Chain Briefing

According to an Industry Week article, manufacturing is at its all-time PEAK!  Not only is it FAR from dead but it is at the highest point in history.  By every measure of industrial production, the U.S. is at record levels.  We are more than twice as high as we were in 1979 when we were at the peak in employment.  

No matter what measure is used, manufacturing is at the top of its game.  Inflation adjusted manufacturing GDP will peak in the 4th quarter of 2017.  Any way you slice it, manufacturing is strong.  Are you thinking about how to leverage this strength?

What Should We Consider and/or What Impacts Could Arise?
Manufacturing isn’t showing signs of slowing down.  In fact, with the recent tax law passage, it could get an additional boost.  Of course, the strong companies are automating and finding ways to provide exceptional customer experiences.   

There is vast potential for growth and success.  

  • Are you working with the strongest suppliers?  
  • If so, do you know how much of their capacity you use?  
  • If they continue to grow, will you continue to receive the same level of service?  
  • Are they continually automating?  
  • Do you have secondary suppliers?  

Remain Competitive and Gain Your Edge
Just because manufacturing is growing, this is by no means a time to rest.  To remain competitive and gain an edge with customers, you need to stay abreast of the latest technologies.  

  • Do you understand your customer expectations?  
  • Are you thinking about what they’ll need one, two and three years from now?  

The most successful companies are definitely thinking AND doing something about it!