Made in the USA! Instead of fiddling around dipping our toes in the water, we should put a full court press on expanding manufacturing in the USA.
Why? Let’s just consider a few questions:
- Should we put our eggs in the China basket? Only if you enjoy substantial risk…
- Are shortages, delays, and extended lead times OK?
- Should we get control over manufacturing in industries related to national security?
- Should we get control over the production of healthcare products and pharmaceuticals?
- Are you OK with countries that use child labor?
- Are you interested in contributing to the economy? According to the National Association of Manufacturers, for every dollar manufactured, another $2.74 is added to the economy.
- Are you interested in cleaner energy? If you add the total carbon footprint of what is manufactured in China, transported, etc., you are likely to be horrified when you compare to the US with significant advances in cleaner energy.
Pick up the Pace of Reshoring
Progress is happening, but it is not enough. Let’s pick up the pace!
- According to Dodge Construction Network, construction of new manufacturing facilities soared 116% last year. (Bloomberg)
- According to the Reshoring Institute, reshoring and foreign direct investment (FDI) job announcements reached a record 261,000 in 2021.
- According to McKinsey, manufacturing contributes 30% of productivity growth.
- Several microchip factories are ramping up in Arizona, Texas, and other locations.
- According to an EY Industrial Supply Chain Survey, 53% of firms have already nearshored or reshored some of their supply chains since the beginning of the pandemic. 44% are planning more during the next 24 months.
Support US Manufacturers
In addition to reshoring, we should support US manufacturers with expansion. It is typically easier, quicker, and more effective to find a US manufacturer and expand operations instead of building new and starting from scratch. It leverages already existing resources and builds upon success. Expansion is possible without increasing headcount if you automate and digitize as you expand. Consider an ERP upgrade or use of technology to support your expansion plans. Upgrade your processes such as SIOP to support efficient expansion with superior service.
Support policies that will aid manufacturers. Encourage manufacturing professionals and engage students in opportunities in the manufacturing field. Support organizations that provide training, education, and mentoring for the manufacturing industry. For example, our Association for Supply Chain Management chapter is providing tailored classes on the fundamentals of production and inventory management and the end-to-end supply chain. Contact us to learn more.
Please keep us in the loop of your situation and how we can help your organization thrive during these times of volatility and disruption. There will be more winners created than at any other time than since emerging from the Great Depression. To gain additional ideas and insights on how to best navigate these volatile times and thrive, read our new eBook Thriving in 2022. Learning from Supply Chain Chaos. Download your complimentary copy.