The COVID-19 pandemic exposed weaknesses in global supply chains. With the United States feeling the impact as goods from major manufacturing countries failed to arrive. This situation highlighted the benefits of “Made in the USA” zinc die casting and the value of reshoring manufacturing.
Deco showed the benefits of domestic sourcing by keeping its operation running when international supply chains were disrupted. Choosing American manufacturing, especially in specialized areas like zinc die casting, offers stability and reduces dependency on overseas suppliers.
Supply Chain Disruptions and Delivery Cost Highlight Benefits of “Made in the USA” Zinc Die Casting
The true cost of overseas manufacturing is becoming increasingly apparent to those exploring the benefits to “Made in the USA” zinc die casting.
Even as the immediate supply chain disruptions of COVID-19 begin to fade.
The global risks of future disruptions remain a concern. After manufacturing, overseas shipping is unpredictable and costly, with uncertainty of shipping, container availability, customs, dock availability and then trucking. Each link in a complex supply chain provides just another risk that can be disastrous.
In contrast, logistics in the USA are simpler and more reliable. American companies purchasing domestically manufactured parts have significantly lower risk, but also costs. Shipping costs compared to those imported globally can be significantly higher.
Freight shipments from China and India via sea freight and air freight have significantly higher costs and then there and added concerns of customer and international tariffs. While international lead time can extend from 30-90+ days.
Domestic shipping is faster, usually taking 1-5 days, and cheaper with shorter distances and reliable carriers.
Evaluating the True Cost of Overseas Manufacturing
One of the critical tools for businesses considering the shift back to American manufacturing is the Total Cost of Ownership (TCO) Estimator provided by the Reshoring Initiative.
Accessible at www.reshorenow.org/tco-estimator, this estimator helps companies calculate the real costs associated with manufacturing overseas versus domestically. It considers a wide range of factors, including shipping fees, tariff rates, inventory holding costs, and the potential impact on supply chain disruptions.
Utilizing the TCO Estimator can reveal the hidden expenses that often get overlooked in international manufacturing. For example, while the upfront production costs might appear lower abroad, when factoring in the total cost—including risks like delayed shipments, quality issues, and the costs of safeguarding against supply chain uncertainties—the scales can tip in favor of domestic production.
By applying this tool, businesses can make informed decisions about sourcing. The benefits of “Made in the USA” become even more evident when considering the full scope of costs and supply chain risks.
Shorter Lead Times and American Customer Service
Opting for American manufacturing saves time on production and shipping, directly enhancing customer satisfaction with shorter lead times. Shorter lead times mean companies don’t need to store as much inventory, saving money on storage costs.
Choosing parts “Made in the USA” also guarantees access to domestic customer service. This advantage ensures better communication, as there’s no time zone and regional issues. With local sourcing there is less risk for language barriers causing confusion and miscommunication.
Environmentally Friendly and Community Focused
American manufacturing, often have a strong tie to the community and environmentally focused on similar issues. Purchasing parts made by local manufacturers keeps money in the local communities through employee payroll, income taxes, and donations.
By purchasing from American manufacturing companies, the focus remains local. Local companies have a stake in local environmental concerns and adhere to good environmental practices and sustainability.
Not only is zinc die casting one of the most sustainable practices because of zinc’s low melting temperature in manufacturing and zinc’s ability to be 100% recyclable, but when souring more locally the cost and environmental impact of emissions from shipping and trucking is reduced.
In Conclusion
With an unpredictable future, it is evident that there is a significant benefit of choosing “Made in the USA” zinc die casting. The advantages of reshoring manufacturing include reduced lead times, lower shipping costs, less harmful environmental impact, and superior customer service. Utilizing the Total Cost of Ownership (TCO) Estimator helps to evaluate the true cost of overseas manufacturing.
Benefits of “Made in the USA" Zinc Die Casting
Michele Duwe
Michele Duwe is the Sales and Marketing Manager with Deco Products. She has seven plus years as a digital marketing manager and a decade of sales and marketing experience.
