Over the last several decades, American businesses outsourced much of their manufacturing and operations overseas. But there are actually signs that domestic manufacturing is beginning to make a comeback. Read on to find out more about the reshoring movement and some of the factors that will determine the future of U.S. manufacturing.

  • International labor laws: One of the primary drivers for the shift to overseas manufacturing has been inexpensive labor. But with wages in countries like China steadily increasing, the gap between manufacturing costs overseas and domestically is beginning to narrow. This rise in wages overseas is reducing the savings potential for companies that are considering moving their operations internationally.
  • Automation: Labor is one of the biggest overhead expenses for companies. With that in mind, it should come as no surprise that the industry’s increasing interest in automation is having an impact on the profitability potential of companies that rely on manufacturing. Automation cuts labor costs, boosts profitability and can have a positive impact on product quality. With the saving potential of automation, manufacturers can afford to keep their facilities in the U.S.
  • Consumer demands: American consumers are becoming more and more concerned with outsourcing manufacturing overseas and that’s one of the most important drivers of the reshoring movement. Consumers are increasingly looking for products that are manufactured in the United States and many are willing to pay more for it.
  • Energy sources and environmental regulations: Changes in energy resources and production in the United States have reduced the cost of energy that’s sourced and produced in the United States. Transporting fuel from overseas isn’t just costly, it also has a major impact on the environment. As EPA regulations have become more stringent in recent decades and more companies are becoming concerned with the environmental sustainability of their operations, manufacturers are motivated to bring their facilities back to the United States.

With the growth of the reshoring movement, it’s important for companies to explore the potential of American manufacturing for their production. At KASO Plastics, we are proud to be an American company with decades of experience providing engineering, product design and plastic injection molding manufacturing services to our customers. You can find out more about everything that we have to offer by contacting our team today.