ONSHORING CONSULTING
Our contacts in the industry have shared a huge trend in molded products. On-shoring of foreign produced products is underway on a massive scale. However, we’ve learned that on-shoring efforts by domestic importers are being delayed by issues including:
Additionally, the industry has been discussing the familiar drawbacks to foreign produced molded products for many years. Some of these drawbacks include:
Based on our market studies, the issue that appears to be the deciding factor is shipping costs. Now that the ports are open again following COVID19, the cost inefficiencies are staggering. We recently had a client tell us that the shipping costs are now 50 times higher than they were before COVID. Smaller high volume, high margin parts can probably absorb this inefficiency; but lower margin, medium-sized and larger parts can’t bear the costs. They need to be moved onshore to compete. BHC Associates is ideally positioned to provide a full suite of consulting services to assist you in meeting your onshore project needs.
We can connect you to North American Molders with high-volume highly automated operations resulting in highly reproducible parts with low contributed labor costs. We have a resin manufacturer relationships which guarantees you can get the right resin for your application. High quality communications from the same time zone are important to avoid project delays, rework, or other issues. Of course, the reduction in shipping costs and wasted time on complex logistics is a huge opportunity to create value.
BHC Associates have a team of consulting professionals who dedicate themselves to supplying outstanding quality service resulting in the finest customer experience. If you are looking for support for your onshoring project, contact BHC Associates today!
- Little to no in-house design and engineering expertise
- Little to no in-house manufacturing or blow molding experience
- Lack of tool ownership and access to the tool drawings and models
- Not having relationships with local/domestic tool shops and molders
Additionally, the industry has been discussing the familiar drawbacks to foreign produced molded products for many years. Some of these drawbacks include:
- Limited control of their vendor’s manufacturing processes and schedules which contributes to poor part quality and late deliveries
- Limited availability of finished goods due to ongoing global plant shutdowns due to COVID
- Perpetual increases in shipping costs
Based on our market studies, the issue that appears to be the deciding factor is shipping costs. Now that the ports are open again following COVID19, the cost inefficiencies are staggering. We recently had a client tell us that the shipping costs are now 50 times higher than they were before COVID. Smaller high volume, high margin parts can probably absorb this inefficiency; but lower margin, medium-sized and larger parts can’t bear the costs. They need to be moved onshore to compete. BHC Associates is ideally positioned to provide a full suite of consulting services to assist you in meeting your onshore project needs.
We can connect you to North American Molders with high-volume highly automated operations resulting in highly reproducible parts with low contributed labor costs. We have a resin manufacturer relationships which guarantees you can get the right resin for your application. High quality communications from the same time zone are important to avoid project delays, rework, or other issues. Of course, the reduction in shipping costs and wasted time on complex logistics is a huge opportunity to create value.
BHC Associates have a team of consulting professionals who dedicate themselves to supplying outstanding quality service resulting in the finest customer experience. If you are looking for support for your onshoring project, contact BHC Associates today!
© Copyright BHC Associates, Inc., 2020 - 2023. All rights reserved.