The Trend Towards Reshoring Jobs and Niche Outsourced Product Development and Manufacturing in the US.
Many people today refer to insourcing as bringing products made in the China or overseas back to the US.
According to StatisticBrain.com 53% of companies in the manufacturing sector rely on companies overseas and in the US for production of product.
The reasons why companies outsource include cost reduction, focus, project acceleration, technology expertise and company re-organizations.
According to USA today companies are bringing manufacturing back to the US:
- Wal Mart reshored 4800 jobs to multiple states
- Ford reshored 3200 jobs Ohio
- Boeing reshored 2700 jobs to St. Louis Missouri
Telsa is arguably leading the way with regard to automobile manufacturing in today’s world. They have disrupted the way cars go to market by cutting out the retailer and selling direct to customers.
You would think that they may be just a fierce with regard to how they build the car. Bring everything in house and save as much money as possible.
The truth is they have over 30 high quality engineering companies similar to RG involved to supply everything from the reclining seat to antenna system. The Model S is a breakthrough vehicle. By relying on companies like Fisher Dynamics to provide reclining seats the engineering team at Tesla could possibly focus on the more important milestone for Tesla, the release of the Model 3. (see picture below)
Photo Credit: https://modelscoil.com
If you look closely at what’s happening in the US you will see that many start-ups and mid-sized companies are relying on partners to develop concepts, manage supply chains and manufacture entire product lines?
The question is why do this? Doesn’t it make sense to manage all of that yourself? Won’t you save more money by so? Not in every case. Here are some of the benefits to relying on companies like RG Group for flexible outsourced manufacturing.
Why RG: Technology expertise, focus, cost reduction and flexibility
By outsourcing the manufacture of your product you gain new time and resources related to what you do best.
Your company may be an expert at selling your products or managing the distribution channels.
By totally relying on someone else to do the manufacturing you can begin focusing on selling more of your product not making it.
On the other hand you may be proficient at developing new products. In many cases our engineering team doesn’t just focus on the building to print….they look to partner with senior executives to help them develop the next generation of products. This collaborative approach between to customer and supplier generally leads to significant cost reduction and breakthrough products.
Ebbs and flow in demand lead to a more cyclical tough to manage business. If you’re a new company or are thinking of manufacturing a new product you will certainly be victim to the unpredictable world we live in.
What will you do if you receive a huge order that may not repeat next year or even next month? By relying on companies like RG you can rest easy in knowing that you don’t have to cover payroll or overhead expenses every month. Your only concern could and should be, where will my next idea or order come from?
Last but not least RG has over 60 years of expertise in the world of Fluid Handling and Motion Control.
What does that translate to? Anything that moves using hydraulic, pneumatic, electromechanical or instrumentation related products. In more common terms the steering of a boat, the lifting of an elevator, the brakes on your car, the movement and safety of an amusement park ride etc. For more information related to RG Group check us out at www.rg-group.com.
Patrick R. Gross, MBA
Engineered Solutions Business Development
The Engineered Solutions Team specializes in providing motion control expertise in all mechanical disciplines; Hydraulic, Pneumatic, Electromechanical. We provide productivity and value in all aspects of the build cycle from feasibility/design through testing, fabrication, installation and commissioning.