Precision Manufacturing, a trade publication operated by the Minnesota Precision Manufacturing Association, released an article titled “The Global View: Reshoring Depends on the Right Business Ecosystem”. The article suggests that businesses cannot thrive let alone survive without a stimulating environment including a workforce of specific skills, local suppliers, and access to customers. Not only that, but a supportive community also plays a key role in successful reshoring expeditions.
The article highlights how the government’s misconception has been undermining the success of reshoring initiatives. Many people in government refer to non-manufacturing jobs created from a reshore as “free jobs.” They fail to see that these jobs are necessary to sustain a healthy business ecosystem and are not just created out of thin air.
Governments and businesses must work together to enable reshoring.
“Governments and business leaders need to ask themselves what type of reshored manufacturing they want in their communities. Do you want to attract manufacturers that are competing to develop and build the next generation of battery technology? If so, you need to shift educational resources toward chemistry and math, and you need to improve your regulatory knowledge of chemicals and processes used in battery production. In short, you need to be smart and interact with the reshored business in a thoughtful way.”
For reshoring to flourish, governments also need to consider international supply chains, tariffs and logistic costs, visa policies, education, skilled workforce, regulatory environment, and transportation infrastructure. All of these combined provide the ideal structure for a business ecosystem that supports manufacturing.
To read the full article, click here.