The Kansas City Business Journal published an article, “‘Reshoring’ gains momentum with U.S., KC manufacturers.” It focuses on KC based manufacturers and their reshoring experience in the Kansas City area.
The first manufacturer mentioned is Prier Products Inc. To save on several months of inventory costs they are looking to buy a machine that will allow them to produce the parts in-house rather than overseas. By reducing inventory, they can have a shorter, more responsive supply chain.
The second is Pride Manufacturing Co. Inc., located in neighboring Liberty, MO. The director of business development, Nathan Goodpasture, says:
“We’re literally finding more opportunity for work than we can possibly handle right now, thanks to customers who would otherwise be in China,” Goodpasture said. “The prices have been rising incrementally overseas, and the spread is now getting small enough to where they are willing to pay a little extra to be in the U.S. It’s not just coming from the grass-roots, patriotic type of people who are torn about having anything in China at all, but from people who previously saw their business overseas as adding tremendous value. If it’s now only going to add a tiny bit of value, then they see it as not worth the costs and hassle.”
A survey done by Cook Associates Executive Search revealed 85% out of 3,000 manufacturing executives nationwide said due to rising costs overseas they are considering reshoring their operations in the near future. As the gap in costs of doing business overseas narrows, Kansas City’s central location and skilled work force are permitting it to be a viable option for reshoring opportunities.
To access the entire article, click here.