Reshoring manufacturing is gaining popularity because of the supply chain issues experienced during the coronavirus pandemic. Overseas factories that closed or halted production left U.S. companies searching for parts and supplies.
Recent laws incentivized manufacturing firms to produce domestically:
- 2021 Infrastructure Law: Designates funding to improve public transportation, internet access, and electric vehicle charging stations
- 2022 Inflation Reduction Act: Invests in clean energy, low-emission vehicles, and other green initiatives
- 2022 CHIPS and Science Act: Invests in semiconductor manufacturing to improve American supply chains
Benefits of Reshoring Manufacturing
Reshoring manufacturing to the U.S. provides diverse benefits:
- No concerns about time zones or language barriers
- No excessive shipping costs, international taxes, or customs fees
- Shorter domestic shipping times
- Faster production processes
- Closer proximity to manufacturing plants lets employers set labor and manufacturing standards, oversee working conditions, and ensure worker safety
- “Made in the USA” product labels encourage repeat purchases
According to Reuters, supply chain solution provider Thomas reported that 83% of North American manufacturers are likely or extremely likely to reshore production. If each manufacturer brings one single-contract domestic supplier, the shift could drive up to $443 billion in US economic value.
These strategies can help build a successful manufacturing team.
Optimize Business Operations
Invest in the latest tools and technologies to automate your manufacturing firm’s operations:
Data analytics
Thoroughly understanding the efficiency of each aspect of the business helps make operational adjustments. For instance, placing devices with embedded sensors connected to the Industrial Internet of Things (IIoT) throughout the facility can collect data for the analytics tools. Also, cloud data analytics platforms can track operational metrics such as employee behavior and production process waste.
Automation
Automating repetitive tasks on the manufacturing production floor and in the office elevates safety, efficiency, and productivity. Examples include inventory management, data entry, and invoicing.
Provide Organizational Charts
Create an organizational chart outlining the employees in each department, their skills and place in the hierarchy, and the best ways to connect with them. Then, post the charts with employee photos in each department and on cloud platforms so workers know whom to contact to ask questions or request help.
Offer Professional Development
Ongoing training and development opportunities help employees increase their skill sets and organizational value. Showing employees are valued and appreciated increases job satisfaction and retention.
Prioritize Communication
Establish multiple communication methods on one platform for employee convenience. For instance, consider using tools such as Slack and Microsoft Teams to facilitate audio calls, videoconferencing, and direct messaging through employees’ phones or computers. Efficient communication supports collaboration, productivity, and problem-solving.
Encourage Collaboration
Employees working together toward common goals can accomplish more than those working independently. As a result, collaboration helps achieve manufacturing targets, company goals, and business growth.
Implement Constructive Feedback
Email employee surveys, offer a feedback channel on the intranet, and encourage supervisor conversations requesting constructive feedback to improve business operations. Then, develop and implement the best ideas. Showing value and respect for employee input elevates engagement, performance, and retention.
Get Help Building Your Manufacturing Team
Connectology has expertise in finding local, experienced manufacturing talent to help reach business goals. Find out more today.
