Connections Blog

Reshoring – Resurgence of US Electronic Manufacturing

USA FlagThere is a growing move to bring electronic manufacturing back to the United States. The terms often used are Reshoring Manufacturing or On-Shore Manufacturing. While this change is not happening rapidly, it is in fact happening.

There are numerous reasons for this shift in manufacturing. Many companies are seeing rising labor costs overseas that directly affect the cost of their manufactured goods. Couple that with the logistics that go into procuring products from offshore, many companies are exploring US companies for their electronic manufacturing needs. Other contributing factors are that many US electronic manufacturers are utilizing a more skilled workforce and becoming more efficient with manufacturing making them more competitive in terms of costing. Perhaps the biggest factor contributing to the reshoring of electronic manufacturing is that many companies are looking for manufacturers/suppliers that can be nimble and react quickly to their needs. Communications and reaction time are critical. Gone are the days of keeping large amounts of components or finished goods in inventory. In the current business climate, companies are trying to keep their costs down and their inventory dollar levels at a minimum. Thus, companies are looking for US electronic manufacturers that they can partner with and provide quick turnaround times on finished goods so that they can meet their customers’ demand and fulfill orders fast.

One resource of interest about reshoring is the Reshoring Initiative® whose tagline is “Bringing Manufacturing Back Home”. They provide the “Total Cost of Ownership Estimator™ – a free online tool that helps companies account for all relevant factors — overhead, balance sheet, risks, corporate strategy and other external and internal business considerations — to determine the true total cost of ownership.” They have a database of “2,900 articles relating to reshoring and related topics.” Some of those articles include:

Speaking of electronics manufacturing done in the USA – if you want to buy custom cable assemblies, wire harnesses and box builds/electro-mechanical assemblies that are built in the USA – in the Philadelphia suburbs in Horsham Pennsylvania, just contact us at Galaxy Wire & Cable and we’ll be happy to assist.