2022 Supply Chain Update: Reshoring Talk Turns into Action

[dot_recommends] July 19, 2022 Manufacturing Business Strategy, Manufacturing Challenges, Manufacturing Marketing Strategy

What does the onshoring, reshoring, and nearshoring activity happening in the US mean for you?

red headline reads "2022 Supply Chain Update" and white subtitle reads "How do the trends impact your manufacturing marketing strategy?" The remaining text appears in the article.

What does the reshoring trend mean for your manufacturing company? In this 2022 supply chain update, I focus on evidence that chatter about reshoring has turned into action.

Plans for moving sourcing seem to be gaining momentum! New evidence points to rapid movement to bring production home, especially in hard-hit sectors.

Talk about supply chain reshoring accelerated in 2022

Perhaps you saw the report from Bloomberg about new evidence of supply chain relocations back to the U.S.? First, they looked at mentions of the terms onshoring, reshoring, and nearshoring in earnings calls and conference presentations. Then, analysts counted how many times the terms came up.

Here’s what they found –

  • Reshoring talk grew 260% year-over-year for Q2 2022.
  • In Q2 2021, there were 70 mentions of related terms.
  • This year in Q2, the related terms were mentioned 181 times!

 

2022 actions back up supply chain attitudes

If you thought the supply changes were all talk, new construction projects data will surprise you. Dodge Construction Network data reported by Bloomberg found these startling facts:

  • New manufacturing facilities construction in the US rose 116% year-over-year.
  • Compared to the 10% increase for all building projects, this trend shouts that big changes are on the way!

New manufacturing construction projects in progress include chip making facilities in Phoenix, and aluminum and steel plants in Alabama, Arkansas, and Kentucky.

And that’s just the tip of the iceberg! The top opportunities in new manufacturing facilities construction span across the US.

What might this trend update mean for your company?

As supply chains get shuffled, new opportunities arise for U.S. manufacturers, especially those manufacturing in the U.S.

For example, new manufacturing facility construction has already driven up orders for air compressors. That led to the reopening of an Ingersoll Rand plant in Buffalo New York.

Now is the time for manufacturers to prepare to be important players in the great supply chain shift! So, we developed some questions to help you plan a strategy that builds relationships and drives sales.

Questions to consider for your strategic supply chain positioning:

  • How can you strategically position your brand to serve the needs of reshoring and onshoring companies over the next several years?
    • What questions do they need to answer as they search for new sources?
    • What will help them get to know your brand?
    • How can you quickly establish credibility?
  • How will you make sure your company gets in front of buyers looking for US suppliers?
    • When did you last conduct an SEO audit on your website?
    • How recently did you evaluate your customer journeys?
    • Could you benefit from a new database build for lead generation?
  • What will keep prospective customers engaged once they find you?

Trends driving supply chain changes in 2022 will linger

It’s worth aligning your marketing strategy with changes in the supply chain, because the trend will likely continue for the foreseeable future.

Let’s look at a few trends driving manufacturers to reshore production:

  • Continued supply chain disruptions from the coronavirus pandemic, especially for components made in China
  • New awareness of vulnerabilities around the lack of US sourcing for key components
  • Manufacturing automation making US production more affordable and profitable

Unfortunately, even the pandemic shows signs of remaining a factor. And our new awareness of vulnerabilities and increased attraction to automation are here to stay. So, this 2022 supply chain update may remain relevant long into next year.

See the full Bloomberg article for more details on what’s behind this trend and what we’re likely to see going forward.

So, what do you see your company doing in response to supply chain trends?

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Managing Partner at StratMg | Website | + posts

With over two decades of experience, Parin leads an expert demand-generation agency, StratMg, that helps industrial manufacturing clients achieve unambiguous and quantified organic sales growth across the US, EMEA & APAC.

Parin has built & positioned StratMg to be a value-added marketing services provider that strives to create a culture of quantified sales-driven marketing initiatives leading to sustained business growth through channel management, diversification, new customer acquisition and retention strategies and tactical execution.

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