Bringing it Home: The Surprising Benefits of Onshoring and Localized Production for Plant Managers

3/17/23 10:54 AM

The concept of offshoring has been a common practice for several decades, with many industrial manufacturing companies outsourcing their production to countries where labor and production costs are lower. However, over the past few years, there has been a growing trend of onshoring and localized production. The COVID-19 pandemic further accelerated this trend, highlighting the importance of local supply chains and reducing reliance on foreign suppliers. In this blog post, we will explore the benefits of onshoring and localized production and provide guidance for plant managers on how to implement this strategy.

The Benefits of Onshoring and Localized Production

There are several benefits to onshoring and localized production, including:

1. Reduced Lead Times: By manufacturing products locally, lead times are greatly reduced. This is particularly important in industries where demand is unpredictable, and lead times are critical to customer satisfaction.

2. Improved Quality Control: By manufacturing products in-house, plant managers have greater control over the production process, resulting in improved quality control.

3. Lower Transportation Costs: By producing products locally, transportation costs are greatly reduced, as products do not need to be shipped from overseas.

4. Greater Flexibility: Localized production allows plant managers to quickly respond to changes in demand and adjust production accordingly.

5. Job Creation: Onshoring and localized production can create jobs in local communities, providing economic benefits to both the company and the community.

Implementing Onshoring and Localized Production

While the benefits of onshoring and localized production are clear, implementing this strategy can be challenging. Here are some key steps that plant managers can take to successfully implement onshoring and localized production:

1. Conduct a Cost-Benefit Analysis: Before implementing any major changes to production, it is important to conduct a cost-benefit analysis. This will help plant managers understand the costs and benefits of onshoring and localized production and determine if it is the right strategy for their company.

2. Invest in Technology: Localized production requires significant investments in technology, including automation and robotics. Plant managers should work with their IT teams to identify the technology needed to support localized production.

3. Develop a Skilled Workforce: Localized production requires a skilled workforce, including engineers, technicians, and operators. Plant managers should work with their HR teams to develop training programs and recruit skilled workers.

4. Secure Local Suppliers: Onshoring and localized production requires local suppliers for raw materials and other components. Plant managers should work with their supply chain teams to identify and secure local suppliers.

5. Implement Lean Manufacturing: Lean manufacturing is a key component of onshoring and localized production. Plant managers should work with their operations teams to implement lean manufacturing principles, including just-in-time production, waste reduction, and continuous improvement.


Onshoring and localized production is a growing trend in industrial manufacturing, driven by the need for reduced lead times, improved quality control, and lower transportation costs. Plant managers can successfully implement this strategy by conducting a cost-benefit analysis, investing in technology, developing a skilled workforce, securing local suppliers, and implementing lean manufacturing principles. By following these steps, plant managers can improve their production processes, create jobs in local communities, and position their companies for long-term success.

Topics: prodcution planing, productivity, Onshoring, Localized Production

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