Onshoring 2019 Talan Products

July 22nd, 2019

An increasing number of US companies are finding that it is an outdated strategy to have production part manufacturing done over seas.  These companies have realized that moving this production overseas doesn’t always deliver the compelling value it may have in the past.  In the 2000-2003 timeframe the US was losing 200,000+ jobs to offshoring, while gaining only 12,000.  In 2016 we saw significant momentum in gaining jobs back, a 600% increase from that level!  On-shoring can produce large volumes of high-quality products very cost effectively for OEM’s of all sizes.We, at Talan Products, have been helping our customers get the best value for their component part spend by making their parts right here in North America.

What’s changed from when so much manufacturing fled our domestic plants? Factory wages in “low cost countries” have been steadily increasing. In China, for example, wages have been increasing by 10-15% per year, for the last 15 years. From 2000 to 2016 the indexed manufacturing labor costs have increased 400% in China while that index is up only 2% in the US.

But, it’s more than just the labor cost.  Edwards Deming wrote “End the practice of awarding business on the basis of price tag, instead minimize total cost”.  American manufacturing has been steadily increasing efficiency across the board. Efficiency is less labor per unit of output.

At Talan Products we have always had a laser sharp focus on efficiency and that shows in our recent industry benchmarking results of our being over 3 times as productive as our industry average.

“Shortening supply chains” isn’t just a buzzword, it’s a real value.  When a shipment isn’t crossing international borders or taking a long voyage over water logistics costs are lower, far less complex, and have a higher confidence of on time delivery.

Being in a close time zone means a greater “awake time” window for discussions.  Issues can be resolved quickly adding to customer delight.  More discussion time also positively impacts innovation.

At Talan Products our customers find great value in our Design for Manufacturability expertise and easy discussion is a key to that program’s success.

Packaging costs are often higher for longer distance shipments. There is often a risk to intellectual property.  The lead time and time to market is greater with longer supply chains.

Oversight is mere hours away with Talan Products, not days, and we love to have visitors.  Come and discover first hand how we have grown in size to be in the top 10% of manufacturers in Ohio.

Reshorenow.org is filled with case studies of companies benefitting from onshoring.  Their results include a company who cut inventory by 94%, we know the value of that here at Talan Products when we took a customer’s inventory turns from 3 a year, to 22!

Another case study digs into a company who thought they were saving 30% a year with an Asian partner, but after all the costs were totaled over several years they were paying a 6% premium, and that just makes no sense.

Talan Products is strategically located in Cleveland Ohio.  Shipping anywhere in the US is easy from this central point.  Some of our most successful onshoring projects at Talan have us sending several truckloads every week to the West Coast at a globally competitive price, and superior overall value.

Ohio is a great place for manufacturing. In 2015 Ohio regained it’s pre Great Depression position as the third most productive manufacturing state. In 2017 Ohio was again ranked 3rd in manufacturing employment nationally. Manufacturing is king in Ohio and is the largest % contributor to the state GDP.  The resources for our success, and that of our customers, is here in Ohio.

We would be happy to discuss your onshoring projects with you, and point you to an industry recognized on line tool, the TCO, Total Cost of Ownership estimator to help you examine your best value for your sourcing dollars.

Purchasing professionals state that although they lose a level of control using overseas suppliers, but that it was worth it for the cost savings.

More and more savvy US companies are finding that this low price was not the value they believed.

Call us, and let Talan Products prove to you what the best value for your sourcing dollar is for high volume metal stampings and fabricated aluminum extrusions.

Made in the USA is increasingly trending positively with US consumers right now, rest assured with Talan Products means that your component parts are indeed, Made in the USA.

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Cleveland, Ohio 44110