According to the latest “State of North American Manufacturing” report from Thomas Insights, a global industrial consulting and analysis firm, 83 percent of North American manufacturers are planning to add North American suppliers to their supply chains within a year, a significant increase from the 54 percent who responded that way to the same question in March 2020.
According to survey data compiled by the company’s Industrial Survey Panel, which draws responses from industrial buyers, the global pandemic led to numerous shifts in manufacturers’ thinking regarding domestic sourcing trends and supply chain demands. The report stated that “the key takeaway is the industry’s growing prioritization of reshoring in the aftermath of the COVID-19 pandemic.”
From the report:
“What happens when four in five manufacturers add North American suppliers to their supply chain in the next 12 months?
“From Thomas’ research, manufacturers add an average of 11 suppliers to their supply chains on a yearly basis. If 83 percent of the 579,811 manufacturers in the USA bring on one new supplier – even a single contract – at an average of $921,247 per contract, it amounts to a potential $443 billion injection into the U.S. economy.”
The report continues: “The supply chain disruptions brought on by the pandemic have become a wake-up call for businesses to look beyond cost-saving and just-in-time inventory management. Ninety-four percent of the manufacturers surveyed listed ‘Availability’ and ‘Lead Times’ as the most important factors when vetting new suppliers, instead of the generally anticipated answer ‘Price per Unit.’ One of our respondents commented, ‘We need more U.S. manufacturers and the supply chain needs to be strengthened. Just-in-time does not work in a boom.’
“If there’s anything positive that came as a result of the intense past year and a half, it’s that many in the industry are calling for more introspection, investment, and support for the wider manufacturing ecosystem and sustainable solutions to future-proof supply chains.”
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