A message from our CEO, Tim Merrifield:

Labor shortages, supply chain backups, geopolitical volatility—just a few of the challenges that manufacturers are facing.

And the debate continues. Will companies benefit from reshoring, maintaining an offshoring status quo, or some hazy balance of the two?

Proponents say that the time for reshoring is now:

  • take advantage of manufacturing cost increases in Asia, which are resulting from a multitude of factors: COVID lockdowns, supply chain disruptions, raw material price increases, closed ports, supplier bankruptcies, employee wage increases, environmental regulation pressures, and higher transportation costs

  • optimize supply chains to reduce lead times, reduce transportation costs, minimize other supply chain disruptions, simplify communications, and improve supply chain sustainability

  • satisfy stringent US regulations

On the other hand, reshoring presents its own unique obstacles, including the increased cost of domestic sources, skilled labor shortages, the need to retool and reengineer, and other expenses inherent in shifting operations from overseas to the US.

At The Cubbison Company, we are facing the same pinch of talent acquisition that most of you are. (In a recent study, 62% of surveyed manufacturers pointed to talent acquisition as their number one concern.)

We also take into consideration the higher costs related to reengineering, retooling, and domestic sourcing.

In the end, our reshoring and offshoring decisions are driven by what is best for our clients—affordability, delivery times, and quality.

Our approach is to retain a mix of well-vetted domestic and international suppliers and manufacturing partners.

We are interested in understanding how other companies are responding to the push and pull of reshoring versus offshoring.

Please take a moment to complete the one-question poll below. We will compile responses and share them in next month’s newsletter.

Sincerely,
Tim