After decades of manufacturing being moved offshore and generally further away in the name of profit, businesses are beginning to see the myriad benefits of keeping manufacturing close and local. This trend is popular with both businesses and consumers for some very good reasons. These are just some of the benefits to keeping manufacturing local from a business point of view.
1. Branding. When thinking about profitability, branding is usually one of the most crucial factors to take into account. There is an increasing focus among consumers on being “local” in general, and products being manufactured locally have been proven an effective selling point for a growing number of brands. For a consumer base that is local, local pride can be a large part of brand identity. Even for an customers that are more geographically spread, the sense of place that is an effectual part of many brands is hugely bolstered by local manufacturing.
2. Safety Concerns. There is no doubt that local manufacturing is safer. The strict regulations for workplaces and manufacturing that are pervasive throughout the United States ensure employee safety. This is not only ethical but also minimizes the risks for costly problems down the line. The products themselves are also generally much safer, which translates to safer, happier and more loyal customers.
3. Supplies. Keeping manufacturing local also means using local supplies. Being able to source supplies locally means faster lead times with designs, prototypes and ultimately the manufacturing itself. Expediting the process in this way leads to a more efficiently run business, which of course benefits the bottom line.
4. Local Employees. When the manufacturing is being done in a distant location – abroad especially – the process of finding, vetting and overseeing employees involved with the process becomes much more complicated. In the case of outsourcing to a cut-rate overseas manufacturer there is almost always a distinct lack of oversight all-around. However, manufacturing done close to home enables close supervision and control over all parts of the process – including finding the very best tradespeople to ensure quality products. A reputation built on quality will benefit any business in the long run much more than undercutting the competition with short-term cost cutting measures.
5. Shipping Costs. Another very real and simple benefit to producing locally is a reduction of shipping costs and time. It is true that one of the primary reasons that so many businesses moved to overseas manufacturing was that labor costs were so low that it offset even shipping costs. However, the lower costs of certain aspects of contracting manufacturing in a distant location are themselves offset by the other factors listed above, in combination with the basic fact that shipping costs are greatly reduced when manufacturing is local. Of course, shipping is not only cheaper but quicker.
There are is a varied diversity of reasons that local manufacturing – once one of the cornerstones of American business – is once again becoming favored by businesses and consumers alike. While many of these reasons fall into the spheres of morals and/or ethics, these are some of the more clear-cut, profit-oriented reasons to keep manufacturing close to home.
Author Bio:
Paul Taylor started www.babysittingjobs.com which offers an aggregated look at those sites to help families find sitters and to help sitters find families easier than ever. He loves writing, with the help of his wife. He has contributed quality articles for different blogs & websites.
