Truckl’s Post

#supplychain #transportation What are the benefits of reshoring manufacturing? I know this is a loaded question. A cynic might argue that it's not very feasible to contemplate this. In the short-term you focus on industries that are easily transferable, and in the long run on those that take more effort. To move away from one country and into another requires a lot more than just setting up a new factory, as you surely know. You need supplier networks that provide materials, a skilled workforce that populates your factory, and, most important, you need comparable unit cost to make it worth while. We can shift apparel manufacturing to France, for example, but labor will simply tripple the cost of each garment. Plus we'd be dealing with a strike every two weeks. It's more likely that we shift from one country to another. The good news for reglobalization, as this dynamic is now called, is that it spreads wealth to many other places. You might even argue that the shift away from today's dominant economies was in the cards all along. It just took a bit of a political push. As a country's standard of living rises, so will wages and expectations. When they do, your unit cost goes up and manufacturers begin to look for other spots on the planet to get things done. There are plenty of countries in SE Asia, Latin America and Africa that could greatly benefit, if we develop the infrastructure along with new economic opportunities. #truckl #innovation

There were always talks about bringing manufacturing back to the US. The issues caused by COVID-19 surrounding supply chain, cost of raw materials, and tightening relations with China have forced manufacturers hand to expedite the process of “onshoring” their manufacturing. This article dives into what that looks like for #commercialrealestate and the economy throughout the US and other boarder states.

"Production runs are becoming much shorter, products are changing much more rapidly, and actually having access to the manufacturers and the suppliers in a local area makes you much more flexible and that is actually a factor behind this" Prof. Dennis Novy at University of Warwick commented on why UK firms are bringing their manufacturing back home in a recent BBC News article. Citing a study published at the start of the year, the article reports that over half of UK manufacturers are now reshoring and examines the significant drivers behind the trend. An even newer emerging trend briefly discussed is 'friend-shoring,' which involves moving manufacturing to a country that has a friendlier relationship with your own to reduce risk and increase resilience in supply chains. Learn more: https://lnkd.in/eq44hkrm #SupplyChain #OnShoring #NearShoring #UKManufacturing

British manufacturing is having a far greater impact on the economy than first thought according to a major new report released today. ‘The True Impact of UK Manufacturing’ shows industry is worth £518bn and supports 7.3million UK jobs directly and across the supply chains/communities it operates in. This represents nearly a quarter of total GDP (23%) and far bigger than the direct contribution of 8.2% that is usually quoted by economists. Carried out by Oxford Economics and the Manufacturing Technologies Association (MTA), the in-depth report also shows that ‘making things’ accounts for 34.5% of all UK goods and services exports

Such a positive note to start a new week on - the power of manufacturing, here in the UK. The industry works hard, has a hugely skilled workforce, delivers quickly within the UK and worldwide to show that the #UKmanufacturing industry is a global player. #electroniccomponents #electronicsmanufacturing #electronicsindustry #UKMfg #electronics #GBMfg #ElectronicsManufacture   #SMEs #SMEbusiness #BritishBusiness #BuyBritish #SMEbusiness #SussexSMEs #UKsmes #SouthernManufacturing #manufacturing #UKbusiness   #BSIqualityassurance #qualitymanagementsystem #ISO9001:2005 #components #semiconductor #engineering #robotics #electricalengineering #technology #electroniccomponent #arduino #electronicprojects #electronicsprojects #sensor #electronicengineering #electronicparts #connector #electricalcomponents

Learn how U.S. manufacturers are leveraging India's manufacturing growth to diversify their supply chains and reduce costs. Read about the strategic shift from China to India. #manufacturing #india #sourcingfromchina #supplychain

This article and the data shown here might be a bellwether of things to come. If we are, in fact, in the first month of Peak Season, China’s slowing export orders tells us something. One possibility is that retailers and importers are, in fact, re-stocking and maybe not necessarily ordering for a strong upcoming spending season.  It was not long ago that import volumes coming into the US were a dribble at best as companies continued to work through the glut of inventory overbought in reaction to Covid’s voracious spending sprees.  With the US economy trucking along at a surprisingly strong clip, those inventories are finally depleted. Since much of the imports from Asia are consumer-related, it makes sense that regardless of the reasoning – restocking or hopes of strong sales – importers needed to order early to make the back-to-school beginning of the spending season. The other option the data out of China could be show is the shifting of purchasing away from China. In which case, watching closely the volume trends out of Vietnam, Indonesia, and other southeastern Asia countries will tell us if the peak of this early peak season is coming sooner or later. With just about everyone kerfuffled over what and why these volumes are moving right now, most of the guesses are this is an early peak season. That is certainly what I think. Given the bone-crushing state of the market, though, the bigger question for importers and shippers now is, how long is this going to last? Though congestion is the real wild card in the current market, there are two trains heading toward a collision eventually. One is the inevitable softening of volumes, and the other is ongoing introduction of new capacity. Eventually, these facts will intersect at a point where the balance will shift, and capacity will outrun volumes. And when this happens, this current carrier party will end. #carriers #china #chinatrade #importers #volumes #transpacific #peakseason

The talk of reshoring, onshoring, nearshoring and “friend shoring” increased during and after COVID with companies looking to secure their supply chains during the pandemic and for the future. We saw Peloton build a factory in Ohio in reaction to the pandemic dynamic. Now we see it again talked about with the Panama Canal and Red Sea issues. In reality, firms have always looked at this and it was also in the forefront with the China tariffs put in place by the Trump administration. This geographic shifting will also influence future container market lanes and demand. From the article: “Reshoring — moving manufacturing back to the countries where the goods are sold —is currently being embraced by 69% of manufacturers, according to research by Medius. As companies continue to weigh the risks and benefits of reshoring, more are embracing it as a core strategy to improve product quality and consistency, take advantage of local tax incentives, and cultivate a skilled workforce. On a global scale, business leaders are turning to reshoring in response to geopolitical tensions that have posed heightened risks to supply chains. The recent crisis in the Red Sea, which resulted in shipping delays and a spike in costs, presents just one example of how global events can take a toll on offshored production.”

As Mexico's role in the US economy continues to grow, their national economy is seeing results as well. Check out this article to learn more about how Mexico has become an important source for US supply chains and to see where different productions are concentrated: https://hubs.ly/Q02jlttW0

According to MarketWatch, a leading barometer of business conditions at U.S. #manufacturers turned positive in March for the first time in 17 months.  #logistics #supplychain #manufacturing https://hubs.ly/Q02rSTrX0