Reshoring Effort Sweeps Across North American Manufacturing Sector

A recent report from KPMG has found that the Canadian Manufacturing Sector is poised for growth after spending nearly a decade in stagnation. This is due to a number of factors, most notably the reshoring effort that promotes growth by keeping production within borders rather than outsourcing to overseas providers.

Rising logistical costs, including fuel prices and shipping, have been major contributors to the reshoring shift in North America. In addition, many customers are looking for faster production schedules, which can be bogged down by sourcing from such distant locations as China and India. Therefore, it comes as no surprise that only 14% of surveyed manufacturers plan to source from China this year, which is down from 31% last year.

Quality is another factor leading the reshoring charge. Whereas it can be difficult to monitor and enforce quality standards overseas, by keeping production within the U.S. and Canada, manufacturers have a much greater sense of the materials and workmanship going into each product.

Before making the final decision on whether or not to reshore production, manufacturers should weigh all the costs and benefits. To make this a bit easier, Industry Week has put together “Reshoring: The Manufacturer’s Checklist,” which addresses the many points that businesses should consider before making any drastic moves. Some of the tips include focusing on total costs rather than unit costs, and looking into government incentives for local manufacturing operations. Another issue to consider is local tax rates – which can vary considerably. So even if the taxes seem prohibitive in your immediate surrounding area, you may be able to find affordable options in other nearby locations.

We welcome the producers who have considered all options and decided to return to North America, and are proud to serve as a Canadian and U.S. supplier of essential components for industry. The industries we serve vary greatly, from automotive manufacturers, to power generation companies, to food and beverage processing and more. As these companies continue to reshore their operations, we’re happy to be their trusted source for seals, retaining rings, caps, and more.

To learn how we can help your business, please feel free to contact us online. We look forward to working with you.