Reshoring Due to COVID-19 New Manufacturing Trend

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Reshoring Due to COVID-19 New Manufacturing Trend

August 21
00:13 2020
Reshoring Due to COVID-19 New Manufacturing Trend

According to Frances Brunelle, President of Accelerated Manufacturing Brokers, domestic manufacturers are dealing with the fact that COVID-19 has exposed many North American-based manufacturers rely significantly upon China for fulfilling some, part, or nearly all, of their supply chain.

Having relegated the supply chain to China for the better part of the past decade, some companies started taking steps last year to divest their over-reliance on Chinese parts. This was prompted by the trade war. Some companies shifted low-cost parts acquisition to Vietnam and others to Mexico.

In light of the virus and its unpredictable path, abatement, and potential resurgence in the fall, the questions of reshoring the supply chain are resurfacing as an alternative. Manufacturers who require, tubing, valves, hydraulic manifolds, molds, and CNC machined products are looking in their own backyard to solve for potential shortages in Q3 and Q4 2020.

Chinese manufacturing will not return to production capacity until Q3 2020 at the earliest. As a result, tier 1, 2, and 3 suppliers’ products will not arrive in the United States until end of Q4 2020 or Q1 2021. When North American manufacturers extend delivery times in excess of 16 weeks, orders will be canceled, reputations will be ruined, and alternative vendors selected for a very long time.

Developing domestic partnerships is the new reshoring. Customers, in most cases, are willing to pay a premium for on-time, as-promised delivery commitments. They understand that US manufacturers charge more for components and that the manufacturing vendor is working to make the best of a bad situation.

Read more here.

About Accelerated Manufacturing Brokers, Inc.:

Accelerated Manufacturing Brokers, Inc., specializes in the sale of manufacturing companies nationwide, with generally $2 – $20 million in revenue, and a minimum of $500K in net income. The firm is exclusively dedicated to helping manufacturers sell their businesses and transition into retirement. The firm’s mission ensures the continuity of U.S. manufacturing by connecting a new generation of entrepreneurial owners. The upfront guidance is offered without a fee; the assessment and how to optimize the manufacturing enterprise for sale is a unique hallmark of the Accelerated Manufacturing Brokers’ value proposition.

Passion about the manufacturing sector is personal; it represents the best and backbone of the U.S. economy. Clients are quintessentially great small American manufacturers. These savvy entrepreneurs are the nation’s renegades and rebels who have worked hard and built great companies. Like the clients served, the Accelerated Manufacturing Brokers’ team is highly entrepreneurial and manufactures their destiny while helping clients realize how to best position their company for prospective buyers.

For current listings click here.

Follow on Twitter at @MfgBrokers.

Media Contact
Company Name: Accelerated Manufacturing Brokers, Inc.
Contact Person: Frances A. Brunelle, President
Email: Send Email
Phone: 908-387-1000
Address:75 Frontage Rd
City: Asbury
State: NJ
Country: United States
Website: www.AcceleratedMfgBrokers.com