The economics of offshoring have looked and remained appealing for the last 50+ years. This is especially true for manufacturing. Cost-savings and a trickling labor force in the states haven’t encouraged much in-house production. That’s beginning to change, though. Tariffs encouraging more US manufacturing, increased speed to market in industries like retail, and innovations in automation are all swinging the manufacturing pendulum back around, making a recent push for a trend in reshoring.
Here to explain how reshoring is affecting the medical device industry is Tom Allen, Vice President of Sales for TRICOR Systems. As the conversation turns to home, Allen has found new challenges in convincing manufacturers that reshoring could be a blessing in disguise.
It’s a lot easier to jump on a plane and fly from even California to New York than overseas to discuss or solve a problem if that’s needed, Allen said. “As the labor goes up, we’re going to either see people moving to other countries where the labor’s cheap again, or back to the US. Our goal is to get them back to the US.”
Allen explains the pros and cons of moving manufacturing to the US, how infrastructure is preparing for the influx, and why reshoring is creating stronger relationships between OEMs and contract manufacturers. “There’s more of a handshake between the OEM and the contract manufacturer, where the CM is offering suggestions for improvements that can save money and save time,” Allen said. “And I believe the OEM’s are listening and open to that.”
For the latest news, videos, and podcasts in the Healthcare Industry, be sure to subscribe to our industry publication.
Follow us on social media for the latest updates in B2B!