Reshoring is the process of returning the production and manufacturing of goods to the company’s original country.According to a 2024 article by Forbes, approximately 66% of U.S.companies outsource at least one department overseas.
Major U.S.-based manufacturers such as Apple, IBM, Walmart, Nike, and Cisco are amongst the largest companies in the world that leverage global talent and cost-effective mass manufacturing in Asia, South America, and elsewhere.As current economic situations fluctuate across the globe, many domestic companies, particularly in the United States, are reevaluating their future manufacturing processes and considering the benefits of reshoring, which include: Improved quality control and local operational oversight.Reduced lead times and fewer supply chain variables.
Lowered costs, especially considering tariffs and oil price fluctuations.Enhanced sustainability efforts and reduced carbon emissions.So how does this impact the additive manufacturing community, and what type of resources will be helpful in this transition? As I look at it, we as individuals and corporations must prepare for all eventualities.
Whether you are a 3D Printing Original Equipment Manufacturer (OEM), Contract Manufacturer (CM), or material provider, certain resources and proactive measures should be considered to support industrial manufacturing clients and their ambition to re-shore production.Let’s explore.Preparing for All Eventualities Comparing Total Cost of Ownership.
When working with a major industrial manufacturer, it’s important to acknowledge that their supply chain and sourcing professionals are hyper-focused on pricing.This typically includes an assessment of labor, logistics, energy, and more.Using a TCO Estimator, like the one available at org, is an excellent resource for supply chain managers, manufacturing management, and logistics coordinators.
The TCO Estimator calculates the total cost of outsourced parts or products and compares that cost with in-house solutions.The recipe is different for additive manufacturing equipment providers vs.contract manufacturers, but it’s still a useful tool recognized by the U.S.
Department of Commerce and is worth investigating.Evaluating Manufacturing Skills & Infrastructure.Reshoring requires a serious commitment to new manufacturing technologies, workforce development, and processes that may not exist within the current structure of the business.
According to a recent article by the Georgia Manufacturing Extension Program, technology will inevitably become the backbone of the supply chain.Therefore, those planning to reshore must ask themselves important questions, such as, can we leverage suppliers’ technology and/or integrate our own? Does our team have the bandwidth to take on new technologies? Additive manufacturing has been hailed as one of the more agile solutions for manufacturers, but it still comes with a hefty price tag.Therefore, those who are reshoring are actively engaging contract additive manufacturing companies to investigate new technologies without the heavy CapEx investment.
It’s a safe way to identify new technologies/materials and leverage engineering and design skills available at the contract manufacturer.Supply Chain Resiliency & Risk Management.The Import Substitution Program (ISP) was created for U.S.-based manufacturing companies, technology suppliers, and trade associations to enable more products to be produced domestically.
Specifically for Technology Suppliers, the ISP paves a path to sell more equipment/technology to OEMs and contract manufacturers by identifying the largest importers of products that can be competitively produced using your technology.Ultimately, it’s a way to simultaneously sell more and strengthen U.S.manufacturing.
The ISP allows Technology Suppliers to explore paths to reshoring by helping identify key inputs such as: A clear definition of the geographic target region (e.g.the Northeastern United States) Selection of best-fit product categories (e.g.electronic enclosures) Targeted companies (e.g.
Polycase) List of products currently or formerly produced offshore (e.g.battery compartments) List of the largest offshore suppliers of relevant products.Learn more about the Import Substitution Program for Technology Suppliers here.
Government Incentives & Support.The U.S.government has enacted legislation several times in the past few years to support reshoring, such as the Inflation Reduction Act and CHIPS Act.
These programs provide expanding access to capital for small manufacturers, tax credits, and even workforce development resources.However, big government can be tricky to navigate, so I recommend a resource that is dedicated to additive manufacturing.In October 2024, the Applied Science & Technology Research Organization (ASTRO) of America in collaboration with the U.S.
Department of Defense (DOD) received final approval for a private equity fund that supports the AM Forward According to a recently released statement, this effort accelerates small businesses’ adoption of additive manufacturing (AM) technology to advance key aerospace and defense supply chains across the country.Specifically, the initiative offers a range of financing structures tailored to the specific needs of small businesses.If your company is targeting the aerospace or defense market, I highly recommend this approach.
You can read the full press release here.Conclusion To summarize, reshoring is an effective strategy that enables domestic manufacturers to tangibly reduce costs, eliminate supply chain headaches, and improve product quality.Furthermore, it encourages domestic labor skills development, sparks innovation, and naturally supports greener and more sustainability-focused initiatives.
For additive manufacturing OEMs or contract manufacturers wondering how to support industrial partners and their reshoring efforts, the brief list of resources provided in this article should provide a quick jump-start in the right direction.For supply chain managers, logistics coordinators, and purchasing professionals who want to learn more about how contract manufacturers can support your reshoring efforts, contact Endeavor 3D, a contract manufacturer located in Atlanta, GA, by visiting www.endeavor3d.com or emailing [email protected] to Our Email Newsletter Stay up-to-date on all the latest news from the 3D printing industry and receive information and offers from third party vendors.