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Offshore & Reshore Manufacturing

Partner with a U.S. manufacturer that knows the global manufacturing landscape.

Manufacturing in the U.S. vs. Overseas

Manufacturing in the United States and abroad continues to be top of mind for companies across industries. From supply chain issues to port closures to a shortage of shipping containers, we’ve had recurring conversations with brands about when they should manufacture abroad or choose a U.S. supplier. In recent years, we’ve seen many companies reshoring their projects by bringing the manufacturing work back to the U.S.

Factors to Consider When Choosing Offshore or Reshore Manufacturing

We’re a strong advocate for manufacturing in the U.S., but there are instances where offshore is the better fit. We also see where nearshoring or reshoring some manufacturing work is beneficial to companies. Here are some of the considerations we discuss with potential client partners regarding offshore vs U.S. manufacturing.

Order Size & Timeline

There are manufacturing companies in the U.S. that can meet both quantity and turnaround needs. So, is there an added benefit of manufacturing offshore?

Yes, you can also get the best of both worlds when you partner with a states-based manufacturer who collaborates with an offshore supplier. Manufacturers who have forged relationships with offshore companies offer an advantage for large companies carrying out massive projects. By partnering with an offshore supplier, your manufacturer can have the out-of-country team run a portion of the volume to get a head start on delivery.

When you outsource with a U.S. manufacturer who has connections to an offshore supplier, you retain control and quick delivery of cost effective, high-quality products.


Labor Cost & Quality Control

One major advantage to working with an offshore, third-party vendor is freeing up time for your internal team to prioritize marketing and sales over production and quality control. You have access to cheap labor, but it may not be as cost-effective as one might think, especially with ongoing supply chain issues and shipping back-ups.

It is common in our industry to believe that offshore manufacturing has lower labor costs and overhead in general, but U.S.- based outsourcing—particularly in the Midwest—can often be the better solution, even for large orders. When you outsource your manufacturing within the U.S., you can give capacity back to your team while retaining a level of quality oversight and control. Working within a few time zones limits logistics headaches between teams.


Shipping Requirements & Costs

So—which costs less?

Across the board, you will almost always find it costs less to have your displays manufactured in the United States.

Generally, manufacturers in the Midwest offer quick shipping for products across the country. As an example, Tusco is within a one-day shipping radius of 70 percent of retailers in the contiguous United States. Not only does this proximity expedite the shipping process but reduces the amount of money you spend on shipping costs. Plus, you’ll get the assurance of having a domestic resource to tap into when you need additional manufacturing services.


Changing Global Dynamics

Factors in global economy, politics, culture and weather can directly impact offshore manufacturing. Throughout any fiscal year, proposed tariffs and price shifts in shipping and materials affect the cost of manufacturing your displays abroad.

If you don’t have prior experience with global manufacturing, team up with a U.S. manufacturer who can outsource the manufacturing process for you when the conditions are best for cost savings; this way, you gain the benefit without allocating resources to keeping your finger on the global pulse.

Is your project best suited for the U.S. or offshore manufacturing?

Contact our experts at Tusco Manufacturing today. We take pride in our in-house capabilities, fast turnarounds, and our connections with both domestic and offshore manufacturers and suppliers. Together, we’ll make sure your project is done right, with the right people, the first time.