Reshoring Manufacturing: Is it Right for Your Business?

Beginning in the 1970s, businesses within the U.S. started “offshoring” their operations to foreign countries. There, the company could take advantage of tax breaks, less strict labor laws, and lenient environmental regulations. This offshoring practice continued for decades, but its effectiveness is now being called into question. Due to rising labor costs, tightening environmental regulations, and volatile supply chains, companies are reshoring manufacturing operations back to the U.S. But perhaps the biggest factor in the reshoring movement was COVID-19’s impact on 98% of global supply chains. An over-reliance on long-distance supply chains resulted in many companies being unable to meet demand. That’s why 79% of executives with manufacturing operations in China have moved part of their operations to the U.S. or plan to do so in the next few years.

It’s no secret that reshoring manufacturing is growing in popularity among American businesses. But is it right for you? Here, we detail the benefits you can expect from moving your liquid blending operations back to the U.S.

Advantages of Reshoring Your Projects

Supply Chain Resilience

As we saw with the COVID-19 pandemic, an over-reliance on foreign manufacturing can have disastrous impacts on your business. By moving your manufacturing back to your home country, you can have greater control over the supply chain. It’s easier to figure out the logistics of sourcing raw materials and transporting final goods when it’s all taking place within one country. Additionally, you can rely on trucks and trains to move the final product, which is generally safer than shipping them by ocean.

Faster Turnaround Times

When you move operations back to your home country, you also benefit from faster turnaround times. Rather than shipping the product across the ocean, you can rely on quick support from rail and trucking companies. In many instances, you could have your product within days, rather than weeks or months.

Job Creation and Economic Impact

Reshoring manufacturing has a huge impact on the American economy. For every $10 billion of reshored manufacturing revenue, another $3.8 billion is added to capital expenditure spending, according to a study by Momenta. The study also shows that for every manufacturing job created, another 7.4 jobs are created in other industries as a direct result. Moving your operations back to your home country could provide a major boost for the local and national economy.

Environmental Sustainability

A major benefit of reshoring manufacturing is the lesser impact on the environment. When supply chains are spread out across various countries, it results in a high production of greenhouse gasses, which is a contributing factor to climate change.

According to the Reshoring Institute, ships are responsible for annually emitting more than one billion tons of carbon dioxide and greenhouse gases. And this estimate is only projected to increase by a factor between 50% and 250% by the year 2050. The study goes on to say that if international shipping was treated as a country, it would be the sixth largest emitter of energy-related carbon dioxide in 2015. Moving manufacturing closer to the final products’ destination can significantly reduce environmental impact by decreasing reliance on long shipping routes.

How Do You Reshore Manufacturing?

It’s no secret that there are a multitude of benefits from reshoring manufacturing operations. But, how do you get started? Finding an experienced manufacturer is the first step.

If you’re creating liquid products and want to reshore your manufacturing, turn to the experts at Crystal Packaging. Located in Colorado, we regularly help customers take charge of their manufacturing and get the high-quality products they deserve. But why should you trust us? Our experience, helpful team, and wide range of capabilities can’t be beat.

Founded in 1977, Crystal Packaging is a leading provider of toll blending, contract packaging, and windshield wash production for a wide range of industries. Our 70,000-square-foot facility features multiple blend tanks and more than two million gallons of storage. With our high-speed filling lines, we can fill, label, package, and palletize containers of varying sizes. Moreover, our unique location allows us to serve a wide variety of distribution and production centers in the area.

All of those capabilities are backed up by numerous industry certifications and a dedicated team. We maintain GMP, ECOCERT, and Safer Choice Standard accreditations to hold us to the highest standards in liquid blending. We also are an H-3 certified facility and maintain an EPA registration for certain products. To date, we’ve produced more than 400 million gallons of product for over 300 satisfied partners. We’d be honored to help you, too.

Contact Us Today

If you’re ready to learn more about reshoring your manufacturing operations, reach out to us for a no-strings-attached consultation.