Since the 1990s, HMMI has witnessed natural disasters, geopolitical unrest, labor strikes and shortages, transportation disasters, and the COVID-19 pandemic drastically alter the supply chain on a global scale. The uncertainty of additional steep tariffs on imported raw materials and products only touches the surface of the threats to the global manufacturing supply chain.
The American supply chain, for example, has suffered over the decades as more OEMs moved manufacturing overseas to take advantage of the cheaper labor and reduced regulations. Moving manufacturing overseas had a domino effect on the American economy. Not only did the country lose manufacturing jobs and the resulting income, but American suppliers also lost valuable customers, forcing them to reduce staff and invest less, perpetuating the cycle.
Onshoring and tariffs are helping repair this damage to the American economy, but it doesn’t have to hurt American businesses or consumers.
How OEMs and the Economy Benefit From Onshoring and Tariffs
Both onshoring and tariffs play critical roles in the health of the American manufacturing industry. OEMs that partner with domestic manufacturers not only avoid directly paying higher tariffs but also reduce logistics and transportation costs while having greater flexibility to rapidly adjust to emergent supply chain disruptions, such as natural disasters shutting down transportation hubs.
With raw materials more expensive to import, manufacturers will look for domestic material sources, revitalizing American steel production. As more OEMs invest in manufacturing stateside through onshoring, and tariffs drive manufacturers to source domestically, more dollars will flood local economies. To meet the increased demand, manufacturers will be able to expand workforces and invest in additional facilities, boosting spending power and providing greater opportunities for businesses and consumers alike.
Advantages of Onshoring with HMMI
Horizontal Machining & Manufacturing Inc., located in Huron, South Dakota, is conveniently positioned for nationwide shipping. We have a history of continually pushing the boundaries of American manufacturing by investing in some of the largest, most advanced manufacturing capabilities in North America. Our highly advanced capabilities enable us to produce cost-effective solutions for complex and oversized metal fabrication projects on a massive scale. By onshoring with HMMI, OMEs can expect:
- Improved Supply Chain Dependability and Speed
- Reduced Logistical Headaches, Expenses, and Uncertainty
- Improved Agility to Adjust to Market Demand
- Enhanced Quality Reliability
- Superior Customer Service
- Shorter Lead Times
Time Is of the Essence to Onshore Your Manufacturing
American OEMs have utilized overseas manufacturing for decades, driving many factories and production plants out of business. With rising tariffs and other supply chain risks, onshoring is becoming necessary. However, domestic manufacturing capacity is limited as a result of decades of offshoring. While manufacturers are gearing up to accommodate the influx of demand, space will fill quickly, resulting in longer lead times. We have proactively prepared our facility, capabilities, and capacity to accommodate OEMs with larger-than-oversized manufacturing requirements.
To stay ahead of the potential bottlenecks while additional facilities are built, we highly recommend OEMs begin the onshoring process now by contacting HMMI today.
