With so many of the world’s manufacturing drifting over the Pacific and south of the Rio Grande, and so much of the customer service sector being offshored to India, the many advantages outfits who insist on an All-American raw materials, manufacturing, marketing, sales, and customer support and services enjoy are often overlooked. But the impressive results such companies, like Airguard, achieve, and the added benefits they offer their customers cannot be ignored.
These benefits include:
Reduced delivery costs
The underlying logic of relocating manufacturing capacities offshore is to save on labor and production costs. However, the relocation also involves increased shipping costs, particularly for regionally dispersed but interdependent operations. And the fact is that the costs of shipping products, components and raw materials around the world have skyrocketed over the past decade. An all U.S.A manufacturing operation means considerably reduced transportation overhead for both inbound and outbound delivery. Moreover, domestic shipping offers a far greater variety of transportation modes and more flexible shipping windows, enabling far lower storage and inventory costs. And of course, American transportation companies are less prone to the misunderstandings and mishaps derived from operating across cultural and linguistic barriers. Then there are international taxes, customs fees, shipping insurance…
The bottom line is that reduced delivery costs alone can lower product costs for an American manufacturing company low – without any compromise on American quality level.
Shorter lead times
The less distance a product needs to travel, the less time it spends in the production process, and the faster they reach the customers, enabling American manufacturers to accelerate the sales process, achieve more agile forecast responses, and relieves them of the need to keep capital locked up in the production chain. But more importantly, an American manufacturer is simply more responsive to the evolving expectations and preferences of their customers, and particularly timely delivery.
Meticulous quality and safety control standards
Let’s face it. The reason many manufacturers locate offshore is precisely to avoid difficult to meet and sometimes expensive standards. But that simply rolls the costs of shoddy work to the customer, the employees – and anyone in the vicinity of their factories. Customers of an American manufacturing company have the satisfaction and security of knowing that their suppliers are in a position to maintain tight controls over operations, and that Federal and state regulation ensures they are up to par.
Maintaining a personal connection through domestic customer service
Something has been lost with the migration of customer service operations overseas. Regardless of how dedicated the workers of the subcontinent are, the personal connection and rapport a domestic service representative can establish with a disgruntled or concerned customer, and the flexibility that comes with mutually understood cultural signals is simply not something that can be replicated with overseas workers.
Not keeping it simple. Keeping it innovative.
Overseas relocation means a commitment to doing everything to simplify the manufacturing process so that lower skilled employees without advanced education do not run into trouble operating the assembly line. But that does not necessarily make for the most superior product. U.S manufacturers simply have more leeway in adapting manufacturing processes to cutting edge products.
All of these reasons are why, even before the dawn of the recent COVID-19 crisis, the trend of offshore relocation could be seen to be stalling, and even reversing. The body blow taken by international shipping companies, and the concern with preventing international transmission of potential pandemics will likely accelerate this trend – but Airguard, and others, are already here, both feet firmly rooted in the soil of the good old U.S of A.