In a recent Crain's Chicago Business article, "How Illinois can join manufacturing's comeback," Illinois is ranked #25 among states in manufacturing efficiency, based on the cost of capital, energy, labor, and materials. It is located near the country's center. It has access to an exceptional transportation network, including rail, air, truck, and barge on the Great Lakes and river systems, making Illinois a solid platform for building.
Labor Costs
Labor costs will remain a challenge, and an aging workforce could derail growth if these skills are not passed on to the next generation through trade schools, technical schools, apprenticeships, and other programs.
Accurate Metal Fabricating provides on-the-job training for most of our employees. All factory personnel must pass a basic skills test covering math, reading, and writing. Advanced testing includes print reading and machine operations.
What is Reshoring?
Reshoring is a business strategy and economic concept that refers to returning or relocating a company's manufacturing, production, or service operations from a foreign or offshore location to its home country. It is the opposite of offshoring, which involves moving operations to other countries to take advantage of lower labor costs or other cost-saving factors.
Reshoring is driven by various factors, including changes in economic conditions, increased labor costs in foreign countries, concerns about product quality and intellectual property protection, a desire to reduce supply chain vulnerabilities, or a commitment to supporting domestic industries and creating jobs in the home country. Companies may also decide to reshore in response to shifts in market demand, such as a desire for more localized production to meet customer preferences or shorter lead times.
In some cases, government policies and incentives can encourage reshoring to boost domestic manufacturing and economic growth. Reshoring can have both positive and negative implications, and its success depends on factors such as the specific industry, cost structure, and the company's competitive landscape.
Join the Conversation!
What is your company doing to support and develop its skilled labor? Where can people get training to secure well-paying, stable manufacturing jobs? Reach out to us today and share your thoughts.