What is onshoring?
Onshoring is a term used to describe a particular type of outsourcing model. This method involves using companies in the same country or location as yours to capitalise on the benefits of proximity.
Similar models include reshoring, the reallocation of production back to the main headquarters, and near-shoring which makes use of options in neighbouring countries. The antithesis is offshoring – relying on operations in distant destinations for materials, parts and labour, usually to save money.
How to onshoring benefit businesses?
Despite its geographical position, the US was impacted by issues in the global supply chain relating to Brexit – the departure of Britain from the European Union – and Russia’s invasion of Ukraine. This is because the widespread use of offshoring has created complex chains and reliance on resources from overseas.
To safeguard the nation’s economic stability for the future, Biden is investing in onshoring which is causing a boom in domestic manufacturing that’s already bolstered the economy and employment rates. Discover the main advantages of keeping business operations on US shores.
- Resistance to international issues
Having most if not all of your operations in proximity to each other gives you resistance to international issues. Forget fears over safe trading routes, material availability, sudden price hikes and money-draining delivery delays: onshoring gives you complete control over your operations.
While the effects of global events such as the COVID-19 pandemic are unavoidable, keeping production on your soil makes you more resilient to the political problems worldwide.
- Job creation and skill development
It might be more expensive to use home-grown labour, but over time the economy will be boosted by the creation of jobs which will benefit US citizens and attract workers from countries near and far.
Onshoring is also an excellent way to upskill your workforce, giving you the confidence to meet and complete any challenges that arise across each industry. There’s more scope for working on world-changing projects and being the first to achieve advancements.
- Improvement sustainability
Tackling climate change is increasingly important to every nation, and onshoring is an opportunity to work to stringent environmental standards. You can use industrial controls to ensure precise processes in factories countrywide to ensure all businesses meet US-standard sustainability regulations.
Having your operations in the US also dramatically lowers your carbon footprint, instantly reducing carbon emissions which are one of the main contributors to human-led global warming.
- Comprehensive quality controls
It’s not only sustainability regulations that can be guaranteed by onshoring your operations. Producing all elements of your product in the US allows you to implement comprehensive quality controls in terms of the materials and machinery used, employee conditions and safety and product function.
