Supply-Chain Wake-Up: Pandemic Exposes Overseas Manufacturing Risks in Injection Molding

Onshoring as a Solution? Analyzing Risks, Benefits, and the Cost-Effective Transformation of Business Strategies

The pandemic laid bare the consequences of companies underestimating the perils of overseas manufacturing, resulting in product shortages and the burden of excessive inventory to offset these risks, tying up valuable cash. Numerous domestic companies still heavily depend on offshore facilities for the production of injection molded goods. The offshore supply chain system remains strained, facing persistent risks such as geopolitical tensions, port congestion, and extreme weather events affecting shipping. Have you considered onshoring your overseas injection molding needs? Explore the risks versus benefits, challenge assumptions about higher costs in domestic injection molding, and recognize that with proper project management, bringing injection molding back onshore can be both cost-effective and a strategic risk mitigation for your business.

Onshoring strategies offer numerous advantages, including lower transportation expenses, decreased import requirements, and overall cost savings. Domestic injection molding not only enables faster response times but also fosters stronger business relationships. It serves as a crucial risk mitigation strategy that is inherently more sustainable. Shorter shipping routes contribute to fewer logistical complications, and manufacturing components in domestic facilities enhances inventory control, bringing greater stability to your business.

A growingly pertinent advantage, particularly observed among the global brands we presently collaborate with, is the increasing demand for environmentally sustainable supply chains. Companies are actively seeking to decrease dependence on carbon-intensive shipping methods, such as ocean freight, and are prioritizing closer proximity to end customers to diminish the overall carbon footprint of their operations. Onshoring practices are aligned with the goal of forging a sustainable future, and supply chains are meticulously constructed to ensure both security and environmental responsibility.

Dispelling the Cost Myth: When it comes to reshoring injection molding, the prevailing misconception revolves around an anticipated increase in costs. At Plascon Plastics, we specialize in assessing onshoring projects and presenting viable options that introduce cost savings. By strategically manufacturing products closer to the market, companies stand to reduce both transportation costs and lead times, while maintaining a stable part price. This achievement is realized through a comprehensive evaluation of the part, mold design, and material selection. Our track record includes several successful onshore projects, with annual production ranging from 800,000 to 25,000,000 parts, where we have effectively transitioned injection molding domestically, resulting in significant cost savings.

Connect with us! What is your company's sustainable injection molding challenge?