Onshoring, or bringing manufacturing operations back to the United States, has been a growing trend in recent years. This is due to several reasons, including a desire to reduce dependence on foreign suppliers, improve product quality, and increase competitiveness in the global marketplace.
Companies of all sizes are exploring ways to bring their manufacturing operations back to the US, but it is not always a straightforward process. Here are some strategies for successfully onshoring manufacturing in the US.
- Assess your supply chain: The first step in onshoring is to understand your current supply chain and identify which operations can be brought back to the US. This includes a thorough analysis of your current suppliers, manufacturing processes, and the costs involved. You should also consider the impact of onshoring on your existing operations and the resources needed to implement the changes.
- Identify potential US-based suppliers: Once you have a clear understanding of your supply chain, you can start to identify potential US-based suppliers. There are many companies that specialize in providing manufacturing services in the US, so it is important to choose the right partner for your business. You should consider factors such as the company’s reputation, experience, and capacity to meet your needs.
- Develop a plan: The next step is to develop a comprehensive plan for onshoring that outlines the costs, timeline, and resources needed. This plan should also include a contingency plan in case things do not go as expected. You should also consider the impact of onshoring on your existing operations and the resources needed to implement the changes.
- Invest in technology: Technology is a key factor in the success of onshoring. It can help to streamline operations, increase efficiency, and reduce costs. You should consider investing in technology such as automation, 3D printing, and robotics to make your manufacturing processes more efficient.
- Build a skilled workforce: One of the biggest challenges of onshoring is finding a skilled workforce to support the operations. You should consider partnering with local schools, community colleges, and universities to develop training programs that help build a skilled workforce. You can also consider offering incentives such as tuition reimbursement and on-the-job training to attract and retain workers.
- Foster a culture of innovation: To be successful in onshoring, it is important to foster a culture of innovation. This means encouraging employees to think creatively and find new solutions to challenges. You can encourage innovation by providing opportunities for professional development, investing in research and development, and creating an environment that encourages risk-taking and experimentation.
- Monitor and adjust: Onshoring is a process, not a one-time event. It is important to regularly monitor your operations and adjust your strategies as needed. This means staying up-to-date on changes in the industry, responding to new challenges, and adapting to new technologies.
- Consider government incentives: Finally, you should consider the government incentives that are available to support onshoring. There are several programs, such as tax credits and grants, that are designed to help companies bring their operations back to the US. You should work with a tax professional or financial advisor to determine the best incentives for your business.
Onshoring manufacturing can be a complex process, but it can also bring many benefits to your business. By following these strategies, you can successfully bring your operations back to the US and reap the rewards of increased competitiveness, improved product quality, and reduced dependence on foreign suppliers. Bringing your manufacturing operations back to the US is a strategic move that can have a positive impact on a company’s bottom line.
All of this is exactly what we’ve been helping our clients do for years through Praxie’s Manufacturing Command Center software. Designed by manufacturing experts, we help manufacturing companies streamline operations while significantly advancing their manufacturing processes. We use bast practices in Six Sigma, Lean, and SQDCI to build processes and dashboards that create competitive advantage.
Michael Lynch is the CEO of Praxie. Prior to co-founding the company, Michael led the Internet of Things business at SAP. He joined SAP as part of the acquisition of Right Hemisphere Inc., where he transformed a small tools provider for graphics professionals to the global leader in Visualization software for Global 1,000 manufacturers. Previously, he was the VP in charge of creative product development at 7th Level where he helped grow the company from 20 employees to IPO. At 7th Level, he led the production of over thirty award winning Internet, education and entertainment software products for Disney, Real Networks, IBM, Microsoft and Sony.
To contact Michael or for more information about Praxie’s Manufacturing Command Center solutions, contact [email protected].
