Guidance for Expanding Manufacturing Capacity
By Brad Cunic, Senior Vice President, Reliability Consulting Group
COVID-19 has quickly demonstrated the dangers of depending too heavily on imports for products critical to the health and safety of U.S. residents. The fast-evolving threat to both individual and economic health has placed a renewed focus on the advantages of reshoring manufacturing capability to the United States.
According to the Reshoring Initiative (www.reshorenow.org) a few significant reasons that companies re-shore include shorter lead times, higher product quality and consistency, minimal intellectual property risks, and the image of being ‘Made in USA’. Add to that compelling economic reasons like strengthening the U.S. economy, creating good jobs, and helping to balance trade and budget deficits, and it seems likely that in 2020 many companies will begin focusing on opportunities to expand their manufacturing capacity in the United States.
COVID -19 has probably shined the brightest spotlight on supply chain weakness in the pharmaceutical and medical supplies industry. At risk are over-the-counter and prescription drugs, equipment, and supplies required to minimize loss of life and to combat exposure to future pandemics. The U.S. federal government is focusing on purchasing goods made in America, and other manufacturing plants deemed “essential” will be expanding here in the U.S. In early April, Larry Kudlow, Director of the United States National Economic Council, said the U.S. government is considering literally paying companies to move manufacturing back from China. (Forbes, April 10, 2020)
For manufacturing leaders investigating the best options for expanding manufacturing capacity in the United States it’s important to investigate known best practices for starting a new facility or re-starting an existing facility – best practices which will ensure the plant starts operations effectively and efficiently, and continues operating at designed capacity at the lowest risk and total cost of ownership (TCO).
To learn more about selecting the optimal approach to expand manufacturing capacity, read the whitepaper.
A Guide for Expanding Manufacturing Capacity
Best Practices for New Plants, Expansions, or Re-purposing Existing Facilities