A number of trends in manufacturing were apparent prior to the pandemic, but many have been accelerated by the new state of the industry presented by the novel coronavirus.

 .

1. Reshoring

 .

Higher value-added manufacturers were already beginning to reshore from China. China’s labor cost advantage is decreasing, and many now recognize that long supply chains tie up a lot of inventory (and cash) on boats, which creates a vulnerability to both quality problems and faster product life cycles. The threat of intellectual property theft is another significant driving factor. Another factor was the decreasing labor content of higher-value-added products, accelerated by increasing automation. The pandemic has increased scrutiny on Disaster Resource Plans, including having multiple options of supply. Reshoring is now seen as a de-risking option going forward. Analysis: Business customers receiving supplies from a single plant in the United States may insist that a second plant be readied […]

Click here to view original web page at www.manufacturing.net