Benefits of Reshoring Die Cutting
Manufacturers are gradually turning to reshoring, particularly in metal cutting and forming processes like die cutting. One reason is the increased customs complications caused by the COVID-19 pandemic, which demonstrated the potential risks with offshoring operations. In particular, manufacturing reshoring is becoming extremely prevalent among US companies to reduce supply chain interruptions and maintain self-sufficiency.
This article will define reshoring and discuss its advantages in the die cutting process.
What Are Offshoring and Reshoring in the Manufacturing Industry?
Offshoring, outsourcing manufacturing to a country other than your own, is no longer practical for manufacturing nowadays. Many businesses focused solely on the initial expenses of establishing overseas operations, such as labor and quoted manufacturing. In reality, numerous hidden expenditures can significantly increase the overall costs of offshoring in the long run. As a result, reshoring has returned.
Also referred to as onshoring, reshoring is the process of returning goods production and manufacturing to the company’s original country. It is also a quick and effective way to boost the economy since it helps stabilize trade and fiscal deficits, generates economic opportunities by creating better manufacturing jobs, and encourages trained human resources.
What Are the Advantages of Reshoring in the Die Cutting Process?
Manufacturing reshoring to the United States benefits companies by increasing earnings, providing pro-business benefits, offering employment services, and facilitating digitization. In addition, you can anticipate the following advantages:
Improved Product Quality and Consistency
Manufacturing companies that use the reshoring method report higher overall product quality and consistency. It also contributes to maintaining effective communication among manufacturing and development teams and implementing responsive quality adjustments during production.
Faster Lead and Delivery Times
Reshoring reduces the time it takes to receive die-cut parts and other stamped metal components. When offshoring processes, products from overseas typically take 10 to 14 weeks to complete and arrive. It also eliminates the need for customers to make large investments in inventories when opting for offshore manufacturing. Furthermore, reshoring allows manufacturers to source materials more quickly due to shorter supply chains.
Enhanced Workforce Competence
Reshoring allows for developing local workers across manufacturing industries and rapidly implementing new methods or process changes. They are usually trained according to strict workforce guidelines, and the company’s substantial investment in automation technology enables specialization.
Reduced Supply Chain and Compliance Risks
Since reshoring brings the operations back home, the supply chain’s complexity and unpredictability decrease. In addition, this method reduces shipping and customs compliance risks while increasing immediate access to all die cutting steps.
Minimized Time Zone Difference Issues
Another advantage of reshoring is that most operations are carried out in the same (or nearly equal) time zone. This benefit allows manufacturers to quickly identify and resolve issues to prevent disrupting the die cutting process, as the collaboration between individuals in the same time zone is fast.
Custom Die Cutting Services From Elastomer Technologies
Elastomer Technologies has over 35 years of experience specializing in customer-tailored molding solutions and die cutting part productions! We constantly provide custom services using various processes like clickers, traveling heads, punch presses, and high-speed automatic work centers. Moreover, our capabilities include the ability to cut the following materials to close tolerances:
- Hook and loop
- Other packaging materials