Reshoring: Bringing Spring Manufacturing Back to the U.S.

What does the growing reshoring trend mean for spring manufacturing? 

Back in the U.S. Back in the U.S. of A!

The past however many months have sent global manufacturing and supply chains into a tizzy. And it’s hitting the spring business. You may remember that back in January, we were forced to send a message to our customers about a shift in our business practices. Bottom line: unfortunately for everyone, it’s taking longer to source materials and prices are going up. 

Between COVID-19, Suez Canal blockages, pipeline cyber attacks, administration changes, and the ongoing shortages of raw materials, the United States may need to change its policies, and in doing so, manufacturers may be forced to rethink their business operations.

Welcome to Tennessee Spring and Metal. Made in America.

As a country, we need to take a closer look at our reliance on offshoring and consider whether or not onshoring can help stabilize supply chains and how sustainable manufacturing can and promote a stronger economy and help strengthen a consumer-driven economy. 

As an on-shore manufacturer or springs and wire forms, we think this could be incredibly beneficial for our industry — and our customers.

While offshoring was once believed to promote world peace, the pandemic put a monkey wrench in things as countries prioritized access to ventilators, PPE, and vaccines.

An article in Forbes, published last fall, noted that “The U.S. is starting to rethink the value of reshoring some of its essential manufacturing. But there are several hurdles to overcome. Companies will need to figure out how to employ more U.S. workers at higher living wages while staying competitive economically.”

The hurdles are significant, but the potential benefits are even greater. Onshoring manufacturing can help heal the supply chain, support local economies, and bring good-paying jobs to cities — and rural communities — around the country.

Benefits Of Reshoring

In 2020, reshoring exceeded foreign direct investment in job creation. Biden is proposing a 10% Made In America tax credit and a 10% surtax on offshoring. Which would certainly support and promote onshoring (FluidForming Journal). 

Reshoring manufacturing has the potential to lower transportation costs, dramatically reduce carbon emissions, improve sustainability, ease supply chain strain, improve the quality of goods, create high-paying jobs for American workers, and revitalize struggling communities. 

Sounds like a lot of wins to us.

Localized production also facilitates just-in-time, LEAN manufacturing, by optimizing the workflow to more quickly produce more specialized products for less capital investment.

Even in third-world countries, employees are demanding better pay and benefits. In addition, rising fuel costs and the rising prices of raw materials affect profit margins on goods made offshore. Now’s the time to conduct a cost-benefit analysis on the price of doing business on foreign soil. 

Although the “buy local” movement is small, it’s growing. More and more consumers are willing to pay for quality and to support the American economy. Depending on your customer base, MADE IN AMERICA could be a huge benefit.

For more information about Tennessee Spring and Metal, contact us at 1-800-497-3545 or email us at info@tennesseespring.com.

Tennessee Spring and Metal is AS9100 Rev D, ISO 9001:2015 certified.