As the manufacturing sector takes on growth in the USA, the opportunities to grow American based manufacturing company’s runs into an exciting phase. However there are various issues with settling into a manufacturing mindset, after years of it being outsourced to the Far East. This includes, but is not limited to, vocational skills training, establishing the manufacturing facility, setting up logistics and warehousing.
Over the last few decades, manufacturers worldwide opted to manufacture in the Far East, a region offering lower labor costs, creating a competitive advantage from a manufacturing cost perspective. Now fast forward this to the economic climate and rhetoric we see today in the USA, times are changing. Like all change, it will take some time to adjust, plan for and prepare for. The big question is how will manufacturers cope with local manufacturing at much higher labor costs here in the USA?
Automation
Innovation in robotics and automation has advanced so much that human labor can, to a sizable extent, be replaced with robots. The cost in operating these robots has been reported to be competitive and efficient. In a way this is great to keep manufacturing costs at bay but it leaves job opportunities in question. Billionaire Mark Cuban has repeatedly warned about this era of robotics replacing manpower in the workforce.
The Power of the Made In USA brand
After decades of perceived poor quality products being supplied from China to the world, many recipients, i.e. consumers, are ready for change. There is a willingness to pay for products made outside of China, be it from the USA, UK, Australia or New Zealand. This is a positive indicator because it opens up export opportunities for USA made products. Believe it or not, markets like China yield higher pricing for products that manufactured in the USA.
Creating the right strategic partners locally
A big part of this new era of manufacturing in the USA requires strategic supply chain management. As companies gear up to establish local manufacturing, it is vital to focus on the core competencies and delegate other functions to strategic partners. A perfect example of this is as inventory builds up, the task of managing inventory is key. You will need a warehouse and you will need to manage it.
Warehousing products is a skill and a job in its’ own right. There are plenty of 3PL (third party logistics) companies who offer outsourced full turnkey solutions for warehousing and distribution. Typically a 3PL will not only warehouse products but ensure your clients get deliveries on time. The perfect strategic partner provides a marriage made in heaven!
Manufacturing and Growing in Southern California
As the 5th largest economy in the world, California yields a great volume of business transactions. Having a manufacturing facility in California may not be your best option but having a partner who can provide full turnkey logistics on warehousing, trucking and distribution of products is.
Westset Logistics is a leading 3PL located not far from the port of Long Beach and Los Angeles, with a 30 minute drive away from Los Angeles International Airport (LAX). It is a privately held business and has expanded on the grounds of superior customer service and sophistication in cloud based warehouse management systems. Westset Logistics accommodates all products that are non-perishable.