"A powerful and unexpected business trend is emerging: More and more manufacturers are beginning to onshore operations they previously sent overseas. And distribution businesses are often in a perfect position to help them succeed, as well as directly benefit themselves."
That's the assertion of a new post on The Informed Distributor blog titled "Manufacturers onshoring - How distributors can benefit." This post is the first in a four-part series based on the BSW white paper "Blurring the Lines between Manufacturing and Distribution: Exploring the hybrid business model."
Here are excerpts:
"It wasn't so long ago that offshoring was the new normal. Long-established manufacturers were pulling up stakes and moving their operations to far distant locations where the logistics were tougher, shipping could be a challenge, but overall costs were lower. Distributors had to scramble to retain, reorganize, or replace relationships that had gone back years or decades.
"What a difference a couple of years can make.
"A new white paper by St. Louis-based Brown Smith Wallace Consulting Group (BSW) makes the case that as some of that business activity returns to the United States, it does so in a way perhaps best suited to the new role distributors play in the market.
"It's time for distributors to rethink their place in the supply chain," BSW writes. "With a nominal investment, distributors can move many tasks 'onshore' that were sent overseas for short-term financial advantage, and change the equation."
Get a copy of "Blurring the Lines between Manufacturing and Distribution."