Insourcing: A Response to Outsourcing
Metal Wall Panels
A few years ago, industrial companies all over the world started to outsource their processes and production to other countries. These countries, like China and India, were able to produce the same products for less money. Workers in other countries are less expensive, and it is often possible to find materials for less through other countries. However, as more and more companies outsourced to other countries, the cost of wages and production fees steadily increased.
In addition to these rising costs, many U.S. laws were created that penalized production from other countries. Many products produced in other countries have large fees and tariffs that regulate the sale and production of the products in other countries. These fees have risen significantly in recent years, which has made many factories reconsider their outsourcing.
Some companies are even bringing their outsourced processes home. The cost of tariffs, high shipping costs, rising wage costs, and increased regulations on foreign-produced goods has made producing products in other countries sometimes more expensive than creating products in the United States. Another problem with foreign production is the high cost of inventory storage and the uncertainty of shipment times. It can take weeks to obtain an item from a far-away country, while it may take only a few days to receive an item manufactured in the United States. Since many people prefer U.S.made goods anyway, the additional bonus of getting the products sooner is enough to deter many companies from choosing foreign-produced goods.
Bringing more industrial processes back to the United States is good for the economy as a whole. More Americans can get jobs, which will stimulate the entire economy as more money is placed into the United States market rather than foreign locations. Factories can also benefit from the process as well with money-savings and a higher quality product.