Reshoring: One of the great manufacturing success stories

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What happens in reshoring? Reshoring is when Manufacturers and other production companies move their formerly offshored operations from China, India, Latin America, and other regions back to North America.

Initially, shortly after the turn of the millennium, while other companies still offshored with gusto, a handful of specialty manufacturers realized that offshoring did not enable them to deliver the product quality and supply chain control that they required to ensure the long-term viability of their businesses. Around 2010, some of the largest brands in the industry began to transition manufacturing back onshore when they saw what a difference reshoring could make in their ability to meet changing customer needs and spur innovation.

When business conditions in the offshore countries changed—increasing costs, more complex regulation, and risk to intellectual property all greatly contributed—many more manufacturers initiated reshoring initiatives. Certainly, other reshoring projects are in planning and early stages right now.

We know of spectacular reshoring success stories. Companies find ways to create revenue from new products and services, make manufacturing more efficient, recruit a highly motivated and educated work force, reduce innovation cycles, and exercise greater control over their supply chains.

Other instances, where the results of reshoring surprised companies or presented complexities they had not anticipated, are not entirely arguments against reshoring. Instead, they are arguments for sound planning and a solid, versatile technology platform that can support both offshore and reshored operations as well as the transition itself.

The Solution? Reshoring Technology in the Cloud

The cloud, where information and technological capabilities become accessible to any user, anywhere, can simplify reshoring initiatives. Since modern ERP and CRM capabilities can be used through the cloud, you can easily set up a business management infrastructure that can change and grow with you through reshoring and into the future.

At Sikich, it’s part of our mission to help manufacturing companies thrive. We help them complete their reshoring projects and become more competitive, profitable companies. We then combine our industry and technology expertise with modern cloud-based ERP.

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.


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