Job shops, stampers and metal processors are noticing more manufacturing work returning "home" to the United States. This “reshoring” trend is attributed to the often unwieldy length of the supply chain, increases in freight and international labor costs, and concerns over quality and delivery. As costs in foreign production companies increase, it is beginning to be more economical to manufacture at home; experts are quick to point out that the trend is not attributable to U.S. government incentives.
Buying and manufacturing domestic is helping to combat the rising costs of transportation as fuel prices continue to rise and the length of the supply chain expands. Several original equipment manufacturers (OEM) that used to buy domestic and produce overseas have invested in new equipment which now makes it more cost effective to keep everything in the States, and as a bonus, they have seen an increase in on time deliveries. With a focus on cost savings, many companies are talking to local suppliers to motivate them to a competitive price and encouraging them to produce parts in needed quantities and dimensions so that they can keep their business local. The new trend of moving production back to the U.S. is accompanied by migration from Eastern Europe to places like Mexico as well.
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