We’ve touched on the topic of the supply chain previously. We discussed how upheavals all along the supply chain, from manufacturing right though to delivery, are causing shortages of critical items.
One of the things we mentioned then was that 83 percent of manufacturers said they were “likely” to “extremely likely” to reshore. This represented a 29-point increase from the year before.
Twenty-nine points is a huge change in perspective, and one that now begs the question: Is this truly the time to bring manufacturing back to the U.S.?
A quick Google search of that question yielded more than a million news articles. No doubt, there are nearly as many arguments for and against. Conflicting arguments aside, there are glimmers of hope peeking through in the headlines.
In mid-October, CNBC reported that TSMC, a Taiwanese chipmaking giant, is building a manufacturing plant in Phoenix. Around the same time, Rochester First reported on a new partnership between Optimation Technology and Re:Build Manufacturing, with a goal of bringing more manufacturing capacity back to the U.S. And in late September, The Detroit News reported that Ford Motor Co. and a partner were investing $11.4 billion to build electric vehicles and batteries, making this the single largest manufacturing investment in the company’s history, and producing 11,000 new jobs.
Each of these news stories brings with it the promise of a better tomorrow, a return to the days of abundant American manufacturing jobs that pay well enough to support whole families. Foreign goods represented eight percent of Americans’ purchases in 1960. Ten years ago, that number jumped to nearly 60 percent.
Perhaps the supply chain problems we’ve grappled with of late are a blessing in disguise. Perhaps American businesses that manufacture overseas will take a long, hard look at how they do business, and make a plan to manufacture more right here in the U.S. And perhaps some entrepreneurs will see the current situation as an opportunity to begin something new, right here.
Wherever you fall in this roundup of possibilities, we are here to help you. Commercial Funding Partners has, since 1987, helped businesses like yours secure funding for manufacturing, equipment and heavy machinery, among other things, across an array of industries. We have helped fuel the growth of American businesses like yours, and we will continue to put the relationships we’ve developed with lenders to good use for you.
If you are currently a client of ours, let us say thank you. We wouldn’t be where we are today without the support of companies like yours. And if you are not yet a client, we welcome your questions and the chance to show how we might help you continue to grow your very own American dream.