Assembly Operations Contribute to Reshoring Surge
The pandemic has spurred a national push to strengthen the domestic supply chain, driving reshoring numbers higher. If the second half of 2021 progresses at the same rate as the first half, reshoring and foreign direct investment (FDI) job announcements for 2021 are projected to be over 220,000 or 38 percent above an excellent 2020, according to the latest data from the Reshoring Initiative. That would give 2021 by far the highest yearly rate recorded to date.
Here are the top takeaways from our data:
- For the second year in a row, reshoring job announcements outpaced FDI—62 percent vs. 38 percent. Companies are focusing on their home markets.
- The number of companies reporting new reshoring and FDI is also set for a new annual record: more than 1,800 companies
- The jobs in transportation equipment manufacturing are mostly related to electric vehicle battery production.
- The computer and electronics industry has seen the largest jump in percent of jobs, due to investment in semiconductor and chip manufacturing.
- New jobs for manufacturing medical protective equipment and pharmaceuticals are down from 2020
- So far this year Ohio, Arizona and Tennessee have seen the most job announcements. Texas has dropped from second in 2020 to 13th in 2021. South Carolina is 11th after years as No. 1.
You can read the full report here: Reshoring Initiative IH2021 Data Report: Reshoring Poised to Surge 38 percent to Record High.
Two Companies Reshore Assembly
Koller-Craft LLC is a family-owned and -operated Tier 2 molder and assembler of automotive components, including interior trim pieces, decorative parts, cup holder assemblies and door handle assemblies.
“We just transferred a lot of business from Mexico to our plant in Gadsden, AL, because the company there couldn’t get enough people to do the work,” says Gary Craft, director of sales at Koller-Craft South. “They were having problems getting employees. And once their product got to the border, the trucks were sitting there for five to seven days because of staffing issues at the border.” Freight cost, inventory, supply chain interruptions, political instability and total cost made offshore production unappealing. Improvement in customer responsiveness, higher productivity, infrastructure, lead time, time to market and proximity to customers made reshoring attractive. Koller is adding 15 to 20 workers to its 170-employee plant.
New Jersey-based solar tech company NanoPV is investing $36 million in a solar panel assembly plant in Georgia. Some 500 hires are planned.
“We are very proud to execute our largest solar manufacturing entity at Americus, Sumter County, Georgia,” says Anna Selvan John, Ph.D., president and CEO of NanoPV. Pat Wilson, commissioner of the Georgia Department of Economic Development adds, “We are witnessing a rebirth of the solar manufacturing industry in the United States.”
Acme Alliance Wins 2021 National Metalworking Reshoring Award
Acme Alliance LLC, a leading die caster in Northbrook, IL, received the 2021 National Metalworking Reshoring Award in recognition of its success bringing manufacturing back home to the United States. I was honored to present the award at the Fabtech show Sept. 14.
Looking for quick answers on assembly and manufacturing topics? Try Ask ASM, our new smart AI search tool. Ask ASM
The award is given annually in recognition of successful reshoring. The award honors companies that have effectively reshored products, parts or tooling made primarily by metal forming, fabricating, casting or machining, including additive manufacturing. Both OEMs and suppliers are eligible. The award is made possible by the Reshoring Initiative, the Precision Metalforming Association, The Association for Manufacturing Technology, and the National Tooling and Machining Association. The Society for Manufacturing Engineers generously provided the venue and audiovisual recording. Companies can apply for the 2022 Award at www.amtonline.org/article/reshoring-award.
Acme Alliance was chosen as the award winner for several reasons. They have had a history of reshoring products for their customers. In one case, their reshoring fixed a quality problem and cut the customer’s inventory by 94 percent! According to our data, quality/rework/warranty and inventory rank in the top ten influencing factors for reshoring with quality ranked as No. 1.
“In our business model, we use our worldwide manufacturing footprint to produce and deliver products to the regions that they are assembled [and used] by our customers,” says Mauri Mendes, president of Acme Alliance. “We truly believe being close to our customer is the most important strategy. We are seeing many large organizations switching their strategy by reshoring their supply chain.”
Matt Thavis, Director of Value Stream Development, provides additional insight into Acme’s reshoring success: “Acme’s vision is all about lean shoring or reshoring. We offer a total cost of ownership business model that reduces client lead time, inventories, freight cost and any amplification of quality concerns. We focus on total cost, not just the single part price of a given component. We seek to reduce the extended value stream, by offering standardized regional manufacturing for our global OEM clients.”
See if reshoring makes economic sense for your company. The Reshoring Initiative’s resources can be found on our website, www.reshorenow.org. Among those resources are 20 webinars related to reshoring. If you or your customer has an opportunity to reshore or wants to find opportunities, contact us at info@reshorenow.org.
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
