The Automation Element of Re-Shoring

Joel Hans, managing editor from Manufacturing.net, released an article, “The Automation Element of Re-Shoring.” Hans focuses on Automation GT, a company that designs and manufactures machines for automation, and the statements of its CEO and President Simon Grant.

“Simon Grant, Automation GT’s CEO and President, says the re-shoring issue has become more prevalent in during early and mid-2012. Even though most of the industry has been aware of the trend, Grant says only recently has there been a ‘re-awakening’ of the capital budgets among his company’s Fortune 100 customers. And while a post-Great Recession economy might give major corporations more flexibility in which to consider the prospect of bringing jobs back to America, it’s not the only reason to pursue the business case.”

Offshore manufacturing results in longer supply chains. As the chain gets longer, the risk for delays and high transportation costs rises dramatically. A specific case mentioned was Hurricane Sandy, which caused some of Grant’s customers to lose key market opportunities. While he admitted that re-shoring does not absolutely protect from these sorts of disasters, it does “significantly lower the barrier to finding a workaround that will get product where it needs to be to keep customers happy. With everything put together, Grant states, ‘From a financial and a logistical perspective, automated production in the U.S. just makes sense.’”

Grant goes on to mention more benefits of re-shoring with an emphasis on automation: precision, better quality control, increased workplace safety, cost-effectiveness, responsiveness to changing market demands, reduction of lead times, increased customization, intellectual property protection, creation of reliable high-paying jobs, and economic development.

“Grant remains optimistic about the prospects of re-shoring during 2013, and is even offering clients who aim to bring production back to the U.S. a free consultation and review of their manufacturing lines. He says, ‘We expect to see onshoring really pick up in 2013. We are excited and ready to consult with clients during their transition.’”

To read more from this article find it here on manufacturing.net.