Offshoring can be an attractive option to manufacturers looking to cut costs. However, ask yourself: “What’s the real cost of offshoring?” Are you actually saving money, or are you losing money due to slow lead times, ineffective products, and,basically, not getting what you were expecting? Oftentimes, offshoring can actually cost more in the long run.

Lead Time

We’ve talked about the importance of lead time in numerous blog posts before, but it really is worth mentioning again because is a big deal. Offshore products require long lead times. Long lead times can create issues for your own workers. This leads to down time, which then impacts your own lead time, and your ability to deliver your product to your customer on time.

Inconsistency

You’ve probably heard the offshoring stories of companies deciding to purchase from China, or another country, because they couldn’t beat their prices. However, you’ve probably also heard the horror stories of products arriving broken, or not getting exactly what you wanted.

This creates even more problems, mainly because you have to figure out a solution to get the correct product in a timely fashion (probably from a U.S. manufacturer) and you’re going to pay a premium for quick lead time. This could have been prevented if you went with the company that bailed you out in the first place.

Unless you know exactly what you’re getting, it’s time to reshore

There are numerous statistics supporting the fact that many American companies, specifically manufacturers, are returning to U.S.- based suppliers due to issues with offshoring. Price isn’t everything. If you have to pay a little extra for quicker lead times, quality products, and customer service, then it’s certainly worth it in the end. Avoid the headaches and reshore.

Contact Custom Tool

At Custom Tool and Grinding, we offer tool regrinding, reconditioning, good advice and other services for industrial clients regardless of the time of year. To find out more about our services, contact us today.