If you’re like most US-based major manufacturing companies, you’re currently getting precision-made parts from China or another country. However, sourcing goods from within the US—aka reshoring— is a strategy being used effectively by a growing number of companies. Reshoring is most effective when the company utilizes “dual sourcing” by partnering with both off-shore and US-based suppliers.
Are you wondering about the overall benefits of dual sourcing in today’s climate? Let’s discuss the top benefits of adding a US source to your off-shore sourcing. We’ll also provide some insights into why US manufacturers should consider sourcing parts from American machine shops like ours.
The Top Two Reasons Why Dual Sourcing is Great for Major Manufacturers:
Production Costs Are No Longer Insurmountable
Due to automation and other productivity-boosting technologies, labor costs are generally cheaper than they used to be. Therefore, sourcing from the US is no longer prohibitively expensive when it comes to many CNC parts. Other countries like China will continue to have an advantage for certain goods. However, the US is capable of producing other goods at a comparative advantage, and dual sourcing lets your company take advantage of both while remaining cost neutral.
It Helps Mitigate Supply Chain Risk
Today more than ever, it’s crucial to have a responsive and flexible supply chain. That’s where dual sourcing has an advantage over single sourcing. There are so many things that can go wrong within a supply chain, from material shortages to natural disasters to political unrest. Scalability can be an issue with single sourcing, and there’s often a lack of flexibility when it comes to costs. If you have a broad product portfolio, dual sourcing will allow you to partner with different sources that have different areas of expertise. And, sourcing within the US can help you cut shipping costs, take advantage of tariff benefits, and more.
Manufacturers should take advantage of any option to reduce supply chain risk and improve supply chain design. A flexible, responsive supply chain is a must for today’s lean businesses—and dual sourcing can help you achieve this. Consider partnering with a US-based supplier to maximize the advantages of dual sourcing.
Manufacturing Metal Parts in the US
If your company is worried about supply chain risks when it comes to offshore sources, then dual sourcing may work to your advantage. Dual sourcing is cost neutral and provides a type of risk mitigation plan for your company. It’s certainly worth considering if you’re working towards a leaner, more efficient supply chain.
At Caldwell Manufacturing, we’ve helped major manufacturing companies like 3M mitigate offshore risk by manufacturing their parts in the US. As a trusted US-based supplier, we work with supply managers to develop a plan that works for their needs. We provide quality CNC metal parts that are up to specifications and delivered on schedule.
Contact us today to learn more! We’d be happy to discuss how we can meet your manufacturing needs.