Switching Up the Supply Chain: Reshoring to the U.S.

Over the past weeks, we have had several serious conversations with current, past, and prospective customers about supply chain issues in the COVID-19 era, and a common theme is starting to emerge.

Nearly all the customers we spoke with say they are looking at making changes to their supply chain and moving more in the direction of reshoring production back to the U.S.

When asked what is driving the shift, this is what we heard:

  • Shortening the supply chain in terms of geographic distance means goods arrive faster.
  • Global trade tensions can lead to uncertainty and unfamiliarity; An inherently greater confidence and comfort level exists with partners closer to home.
  • Having supply chain partners in relatively nearby time zones means greater ability to communicate with someone during common business hours.
  • Nearby partners can offer lower inventory or minimum order requirements.
  • Corporate travel restrictions limit the ability to engage with overseas vendors face-to-face.
  • Intellectual Property disputes, when they occur, can be very difficult to win in the global landscape, and they are easier to navigate when all parties are domestically-based.

As an East Coast-based producer of consumer packaging, closures, and components with two state-of-the-art manufacturing facilities in Somerville, New Jersey, USA, and Brantford, Ontario, CA, CMG Plastics is well-positioned to support a wide range of brands, from emerging to established companies, that want to move their supply chains closer to home. To learn more about our capabilities and start a conversation about how we can help you reshore your plastic products, click here.