What is Reshoring and How Does it Relate to Injection Molding?

“Reshoring” refers to moving business activities from foreign countries back to a company’s home country. It’s the opposite of offshoring, which became popular in the late 1970s. By offshoring operations, companies could take advantage of tax breaks, lower labor costs, access to cheaper materials, and less strict environmental regulations. However, reshoring is becoming more common as these considerations change.

Today, foreign manufacturing is not as lucrative as it once was. Supply chain bottlenecks, rising labor and transportation costs, and tightening environmental regulations are closing the gap between onshore and offshore manufacturing. Perhaps the biggest factor in the reshoring movement was the COVID-19 pandemic’s impact on 98% of global supply chains. Due to the challenges presented by the pandemic, 79% of executives with manufacturing operations in China have moved part of their operations to the United States or plan to do so in the next few years.

Reshoring is growing in popularity among a wide range of industries, particularly those that rely on injection molding. With such an interest in this phenomenon, you may be wondering if it’s right for your organization. While it’s indisputable that there are advantages to reshoring injection molding, how do you know if it’s truly something you should pursue? Here, we’re breaking down the benefits of working with an onshore injection molding partner.

Advantages of Working with an Onshore Injection Molding Partner

Better Communication and Collaboration

Proximity plays a huge role in communication and collaboration. Onshore manufacturers are geographically closer to the business, which facilitates real-time communication and quicker response times. Additionally, language proficiency is often higher with onshore manufacturers, resulting in clearer communication and a lower likelihood of misinterpretation.

Faster Turnaround Times

When you work with an onshore injection molding partner, you’ll see reduced shipping and transportation times. Not only can these enhance your speed-to-market, but you’ll also see lower costs to transport your product.

Strict Regulatory Compliance

Onshore manufacturers are well-versed in local laws and regulations, which minimizes your overall legal risks. While offshore manufacturers can also offer regulatory compliance, they may not be as familiar as an onshore partner.

Enhanced Intellectual Property (IP) Protection

Choosing an onshore partner for intellectual property protection often stems from a combination of legal and practical considerations. Onshore manufacturers operate within the same legal jurisdiction as your business, providing a shared legal framework that can facilitate clearer and more enforceable protections. Additionally, onshore partners are subject to stringent regulatory standards and compliance requirements, which often include robust measures to safeguard intellectual property rights. Both of these factors contribute to heightened IP protection for your business.

Need an Onshore Injection Molding Partner? Turn to Schnipke

Reshoring your manufacturing doesn’t have to be a painful process. With Schnipke, we can get your injection molding operations set up quickly and on a trajectory for success. As a United States-based company, we’ll be there for you to deliver the quality products you need.

Since 1967, we’ve dedicated ourselves to providing outstanding customer service and innovation to solve the most difficult tooling, molding, and assembly problems facing our customers. Through our dedication, we’ve become the supplier of choice for highly complex and tight-tolerance plastic injection molded components.

We specialize in precise injection molding for the medical and electronics industries. We can design tools within tolerances of +/-0.001” and as small as 0.02 grams in weight. All of our services are backed by our ISO 9001:2015 and ISO 13485:2016 certifications. When you work with us, you know you’re getting the highest quality products possible.

Let’s Get Started

Want to learn more about what we can do for you? Reach out to our team today.