When looking for a manufacturer that will provide you with

quality, savings, and a quick turnaround, it’s essential to

consider the location of your facility. While many
companies are moving overseas in search of cheaper
production and labor costs, it often pays to keep your
company based right here in the United States. In fact,
there are numerous benefits to choosing a manufacturer
based in the United States over those found abroad––,
especially in the long run.  Below, we discuss seven of the
main advantages.

1. More Jobs for Americans

Choosing U.S.-based manufacturing means creating jobs
here at home for Americans. Many customers value
companies that are rooted in their communities and
employ their neighbors and friends, and therefore will
choose those products over your competitors for that very
reason.
By keeping your manufacturing in the United States, you
can be sure that you’re supporting the local and national
economy and helping American families thrive financially,
which in turn further stimulates the economy at all levels.
Manufacturing currently provides some of the highest
wages in the country for industrial workers. In fact,
according to the U.S. Bureau of Labor Statistics, industries
that specialize in producing goods paid an average salary
of $56,799 per year—more than $10,000 above other
popular working-class sectors such as healthcare or
teaching.
Additionally, it’s not just manufacturing jobs that you’ll help
create. In 2013, the American manufacturing industry
employed about 12 million people, but it also helped
create an additional 17.1 million ancillary jobs as well. U.S.
manufacturing helps create jobs not only for the
individuals who are manufacturing the components and
products, but for those who are selling them, distributing
them, and using them in other technologies. 
Manufacturing is continuing to grow—gaining 1.1 million
jobs since the Great Recession in 2008, and many
manufacturers anticipate an additional 2% growth during
2018.

2. Reduced Cost for Deliveries

 While locating
manufacturing facilities abroad as a means of saving labor
and production costs has traditionally been a common
practice, the logistics costs involved with shipping
products, materials, and/or components halfway around
the world have climbed exponentially in recent years.
When you choose to keep your manufacturing in the
United States, you’ll save significantly on inbound and
outbound delivery and shipping costs. While shipping
products from overseas can be expensive, shipping
domestically provides a range of transportation modes and
broader shipping windows that can offer significant
savings. Plus, by working with American delivery
companies, you’ll eliminate the risk of miscommunication
due to language barriers or currency differences, creating
a much smaller margin for human error.
Using U.S. shipping providers also means that you’ll again
be contributing to the national economy, and you’ll
significantly reduce the amount of money you’re spending
on shipment insurance, jet/ocean liner fuel, international
taxes, customs fees, and more. By keeping shipping costs
low, you’ll also be able to maintain product costs lower
because you’ll have less overhead. Low prices keep
customers loyal and more likely to buy again and again.

3. Shorter Lead Times

Not only does manufacturing in the U.S. save you money
on logistics costs, but it also saves you valuable time in
the production process. When goods have less distance to
travel to get to their distributor or intended retailer, they
can be delivered more quickly to the customer—
accelerating the sales process, enabling more agile
forecast responses, and getting money in your pocket
sooner.
Having a shorter lead time is also a surefire way to
increase customer satisfaction. Living in the digital age,
customers have come to expect products to arrive within
very short time frames. This is known as the Amazon
Effect. Instead, shorter lead times will keep shipping costs
lower for consumers, while still meeting the expectation
that the product can be delivered on time. 
To meet these nearly instantaneous demands, many
companies who manufacture abroad must keep large
inventory stores on hand in the United States anyway—
which can end up being both costly and risky in terms of
paying for storage space, labor to control/maintain
inventory, as well as the chance that it could expire or
become outdated before it sells. Manufacturing within the
United States enables a push mentality instead of a pull
mentality for an organization’s supply chain and increases
the ability to successfully weather unexpected market
shifts.

4. Environmentally Friendly

Cutting down on transit and

delivery costs not only saves money but energy, making
the U.S. manufacturing a much eco-friendlier option.
Ocean shipping is one of the biggest emitters of
greenhouse gases, and by cutting down on international
shipping, your company will produce a much smaller
carbon footprint. Customers want to feel good about the
companies they purchase from, and many consumers will
factor a company’s environmental standards into their
purchasing decision. 
When manufacturers are located abroad, however,
customers sometimes have a hard time feeling connected
to the place they’re doing business with. Some consumers
may begin to wonder whether they’re conducting ethically
sound and environmentally friendly business practices,
making them less likely to buy products made overseas. In
addition, the “maker movement” is currently taking storm
across the nation, placing a greater emphasis on
individual craftsmanship and local manufacturing that lead
to greater environmental sustainability.
By manufacturing at home and lowering your overall
energy consumption, you’ll be sure to grow your business.

5. A Higher Standard of Safety &

Quality Control
By being geographically closer to your production facility,
you’ll be able to execute tighter control over the
manufacturing process, allowing you to ensure that all
products fit set standards and specifications. If a problem
should arise, you’ll be able to catch it and correct it more
quickly—saving valuable time and money in the long run.
Plus, you can be more confident that all materials being
used in your facility adhere to safety and quality
standards, as well—helping you make sure that you have
the best building blocks on hand to manufacture your
product.

U.S. manufacturing also allows you to enforce

greater safety practices in your facilities to help protect
your workers. Countries where manufacturing is
commonly outsourced often do not have the same level of
safety regulations that the United States has, which could
put your employees at higher risk of injury while at work.

6. Homegrown Customer Service

Manufacturing isn’t the only part of your business that
gains by keeping your company located on American soil.
Customer service is an integral part of any company’s
success, and it’s often majorly influenced by the
geographic location of your customer service
representatives. When customer service representatives
and centers are located abroad, customers often feel a
disconnect between themselves and the people handling
their service issues. In addition, there can sometimes be
language barriers that can cause miscommunication
between representatives and customers, which can lead
to problems and frustrations on both sides.
7. U.S. Manufacturers Pay U.S. Taxes
While offshoring has traditionally been a means to save on
taxes, the benefits of reshoring or keeping operations in
the United States should not be understated. By keeping
your manufacturing firm in the United States, your taxes
will support the community that you and your employees
live in in terms of infrastructure, social programs, and
more. Keeping manufacturing operations in America
strengthens the United States’ economy and keeps our
government’s financial system secure.
Together, these benefits present a solid case to keep
manufacturing companies in the United States. While
overseas manufacturing might seem like a cheaper option
for many companies, in the long term, the benefits of
keeping your manufacturing facility domestic far outweigh
the short-term benefits of moving your facility abroad.

Learn More
The Rodon Group is a family-owned and operated
company that has been manufacturing on American soil
since 1956. Supporting American manufacturers supports
us all. To learn more about The Rodon Group’s made in
America policy, click here. 

Learn more about the hidden risks and costs in an

offshore supply chain by downloading our
whitepaper, Hidden Risks in an Offshore Supply Chain.