Paul Martyn: “From a supply chain perspective, I have capacity, time and inventory as my buffers for uncertainty. With inventory and time increasing, it’s an indicator that demand is more bullish among manufacturers in the U.S.”
Reshoring Will Take Time
Companies are also employing more sophisticated ways to track costs, using total cost of ownership models that can result in companies purchasing more domestically.
Reshoring is a reality for U.S. manufacturing, says Martyn, though he cautions that it will take time for its effects to be seen fully. In part, that is because lower energy prices arising from the natural gas boon are resulting in more capital spending on projects that will be years in creation.
“The capital-intensive nature of the manufacturing that will return here takes some time,” says Martyn.
Like many observers, Martyn cautions that we shouldn’t assume that the return of more manufacturing operations to the U.S. will result in the same numbers of jobs that were created in the past. Robotics, 3D printing and other technologies will result in more automated, less labor-intensive operations. And those operations will require skilled workers that are still in short supply. But despite these challenges, says Martyn, reshoring is a “trend that we can’t ignore.”
