Plastic and tooling products have been greatly impacted over the years by overseas manufacturing. In the past, cheap labor overseas compelled US manufactures companies to contract work and move companies overseas. This created problems for many American manufacturing industries. To name one industry, Tool shops throughout the US were forced to cut staff and many jobs were lost and many companies closed. “Reshoring” started happening when many obstacles and problems arose by contracting work overseas. Below is a list of obstacles when sourcing products overseas.
- Long lead times.
- Poor quality materials, parts and assemblies.
- Providing wages for overseas employees: quality, production and shipping personnel.
- Product errors with the communication gap.
- Increasing shipping costs and expedition fees.
Products started to “reshore” and now in the year 2018, tariffs are beginning to be placed on imports. Steel tariffs imposed on imports of 25% is going to lead the tooling manufacturing business in America to new levels not seen in years. Tool shops in the US will need to expand and hire skilled workers to meet demand. Plastic manufactures will see the triple down effect by the reshoring of tooling and will begin to see a higher demand for US plastic manufacturing. Below is a list of benefits when sourcing products domestically.
- Same tooling costs with better quality.
- Higher quality materials, parts and assemblies.
- Shorter lead times with smaller order quantities (JIT).
- Cut wages on overseas quality, production and shipping personnel.
- Reduce errors with the communication gap.
- Lower the increasing shipping costs and freight delivery times including expediting.
- Lower unemployment rate.
- Increase wages.
- Increase corporate profits.
- Increase US tax base, trade imbalance and federal deficit.
- Made in the USA – proud.
Courtney Gust, Camcar Plastics Inc