In a recent article in Crain's Chicago Business online, How Illinois can join manufacturing's comeback, Illinois is identified as #25 of all states in manufacturing efficiency when considering the cost of capital, energy, labor, and materials. It is located near the country's center. It has access to an exceptional network of transportation options, including rail, air, truck, and barge on the Great Lakes and river systems, making Illinois a solid platform to build.
Labor Costs
Labor costs will continue to be an issue, and the aging workforce could derail growth if these skills are not passed on to the next generation through trade school, technical school, apprenticeships, and other programs.
Accurate Metal Fabricating provides on-the-job training for most of our employees. All factory personnel must pass a basic skills test, including basic math, reading, and writing skills. Advanced testing includes print reading and machine operations.
What is Reshoring?
Reshoring is a business strategy and economic concept that refers to returning or relocating a company's manufacturing, production, or service operations from a foreign or offshore location to its home country. It is the opposite of offshoring, which involves moving operations to other countries to take advantage of lower labor costs or other cost-saving factors.
Reshoring is driven by various factors, including changes in economic conditions, increased labor costs in foreign countries, concerns about product quality and intellectual property protection, a desire to reduce supply chain vulnerabilities, or a commitment to supporting domestic industries and creating jobs in the home country. Companies may also decide to reshore in response to shifts in market demand, such as a desire for more localized production to meet customer preferences or shorter lead times.
In some cases, government policies and incentives may play a role in encouraging reshoring to boost domestic manufacturing and economic growth. Reshoring can have both positive and negative implications, and its success depends on factors like the specific industry, the cost structure, and the competitive landscape of the company involved.
Join the Conversation!
What is your company doing to support and develop its skilled labor? Where can people get the training to secure these good-paying and stable manufacturing jobs? Reach out to us today and share your thoughts.