Onshoring Manufacturing

Extracted Attributes

• Definition

  A business strategy in which a company outsources specific business functions or manufacturing processes to third-party service providers or manufacturers that operate within the same country as the hiring company. It can also involve relocating a domestic organization to another location within the same country, or establishing business operations within the country of origin.

• Key Benefits

  Reduced shipping times and costs, faster response to customer demands, improved quality control, greater oversight of design and production, strengthened economy, job creation, reduced unemployment, balanced trade deficits, localized and secured supply chains.

• Key Challenges

  Higher domestic labor costs, difficulty finding qualified workers in some industries, need for investment in new infrastructure and technology, potential underestimation of costs and logistical planning.

• Alternative Names

  Reshoring, Inshoring, Backshoring

• Industries Benefiting

  Apparel and fashion industry, chemical and specialty materials companies.

• Solano Foundry Vision

  Largest park for High-tech Manufacturing in the United States, fostering Onshoring Manufacturing by building 'Factories of the future' powered by AI and Robotics.

• California Forever CEO

  Yan Stramic

• Solano Foundry Location

  Solano County, California, United States

• California Forever Backers

  Investors from Silicon Valley

• California Forever Project Name

  Solano Foundry

• UK Manufacturing Decline Period

  Second half of the 20th century.

• UK Manufacturing Historical Context

  Began with the Industrial Revolution in the late 18th century.

• California Forever Shipbuilding Plan

  Develop new shipyards on the West Coast to address national security issues, counter output disparity with facilities like Jong Jing Island shipyard in China, and mitigate strategic vulnerability of the Panama Canal.

• UK Manufacturing Global Ranking (2024)

  10th

• California Forever New City Development

  Walkable City for up to 400,000 residents.

• UK Manufacturing European Ranking (2024)

  4th

• UK Region with Lowest Manufacturing Employees

  London (2.8%)

• UK Region with Highest Manufacturing Employees

  East Midlands (12.6%), West Midlands (11.8%)

• UK Manufacturing Workforce Percentage (June 2010)

  8.2%

• UK Manufacturing Contribution to Goods Exports (2014)

  44%

• UK Manufacturing National Output Percentage (June 2010)

  12%

Timeline

• The Industrial Revolution began in the United Kingdom, marking the start of its long history of manufacturing and contributing to early economic growth. (Source: wikipedia)

  1700s

• The United Kingdom experienced a steady decline in the importance of manufacturing, with its economy shifting towards services. (Source: wikipedia)

  1950-2000

• Manufacturing in the United Kingdom accounted for 8.2% of the workforce and 12% of the country's national output. (Source: wikipedia)

  2010-06-01

• Manufacturing accounted for 44% of goods exports in the United Kingdom. (Source: wikipedia)

  2014

• The United Kingdom held the world's 10th largest manufacturing output and the 4th largest in Europe. (Source: wikipedia)

  2024

• California Forever is spearheading the creation of the Solano Foundry in Solano County, California, envisioned as the largest high-tech manufacturing park in the United States, to foster onshoring manufacturing using AI and robotics. (Source: related_documents)

  Ongoing

• California Forever plans to develop new shipyards on the West Coast to address national security concerns and mitigate strategic vulnerabilities related to shipbuilding. (Source: related_documents)

  Ongoing

• California Forever is developing a new walkable city for up to 400,000 residents in Solano County, embodying a movement towards re-industrialization and abundance. (Source: related_documents)

  Ongoing

Manufacturing in the United Kingdom

The United Kingdom, where the Industrial Revolution began in the late 18th century, has a long history of manufacturing, which contributed to Britain's early economic growth. During the second half of the 20th century, there was a steady decline in the importance of manufacturing and the economy of the United Kingdom shifted toward services. Manufacturing, however, remains important for overseas trade and accounted for 44% of goods exports in 2014. In June 2010, manufacturing in the United Kingdom accounted for 8.2% of the workforce and 12% of the country's national output. The East Midlands and West Midlands (at 12.6 and 11.8% respectively) were the regions with the highest proportion of employees in manufacturing. London's manufacturing sector had the lowest at 2.8%. In 2024, the United Kingdom had the world's 10th largest manufacturing output and the 4th largest in Europe.

Web Search Results

• Onshoring: Understanding the Concept, Industries that Benefit, and ...

  #### How Does Onshoring Optimize Manufacturing Processes? Onshoring optimizes manufacturing processes by locating production facilities or activities within the same country where a company's target market or customers are located. This approach offers several advantages that enhance manufacturing efficiency. Onshoring reduces shipping times and costs, as products do not need to traverse long distances. This proximity enables manufacturers to respond quickly to changes in customer demands. [...] Onshoring is a business strategy in which a company outsources specific business functions or manufacturing processes to third-party service providers or manufacturers that operate within the same country as the hiring company. It can also involve relocating a domestic organization to another location within the same country, or establishing business operations within the country of origin. Unlike offshoring, which involves outsourcing to foreign countries, onshoring keeps operations within [...] The apparel and fashion industry may onshore manufacturing to maintain greater oversight of design and production and improve quality control. Improved quality control in the apparel and fashion industry when onshoring manufacturing typically relates to the advantages of proximity, communication, responsiveness, and visibility that come with manufacturing facilities located closer to a company's headquarters or design teams. This setup allows for more frequent quality checks, smoother

• How Onshoring is Transforming the Global Supply Chain - Protolabs

  The world of manufacturing is evolving, and in 2024, disruptive trends like onshoring and nearshoring are at the forefront of global supply chain transformation. To understand why these concepts are so important to the overall landscape, let's first start by defining them. Onshoring: the process of sourcing or relocating a business' manufacturing operations within domestic national borders. Reshoring:the process of returning the manufacturing of goods back to the company's original country. [...] But onshoring and reshoring aren't the only strategies on the table to manufacture products closer to the point of consumption. Nearshoring has also gained traction as companies move production to friendly neighbors, often achieving cost reduction while improving supply chain stability. For American companies, this might mean shifting segments of manufacturing operations to Central America, cutting transportation cost and lead time while maintaining relative proximity to the U.S. market. [...] A comprehensive strategy, inclusive of onshoring and nearshoring, strikes a balance between cost efficiency, geographic proximity, and speed, making it an attractive alternative for the product developers who have ridden waves of supply uncertainty since the onset of the COVID-19 pandemic. ## Manufacturing's Technological Evolution and the Sourcing Challenge

• What Is Onshoring? - NetSuite

  Onshoring refers to when a company pulls its sourcing and manufacturing operations back to its home country after having moved them overseas. (In this context, onshoring is also referred to as reshoring.) In other situations, it’s a strategy that a business sets on Day 1. Either way, onshoring is part of a worldwide reconsideration of supply chain management that also incorporates approaches such as nearshoring to countries that are closer to home. ## Onshoring Explained [...] However, onshoring also presents challenges. Domestic labor costs can still be higher, and finding qualified workers may be difficult in some industries. Companies may also need to invest in new infrastructure and technology to establish domestic production facilities. Of note, the US Chamber of Commerce says it hasn’t seen a mass exodus of US companies out of manufacturing centers in Asia. More often, onshoring represents part of a supply chain rebalancing in an increasingly complex and

• Reshoring: What It Is, How It Works, and Examples - Investopedia

  Reshoring, also known as onshoring, is the opposite offshoring and involves the returning of the production and manufacturing of goods to the company's original country. Reshoring can help strengthen an economy by creating manufacturing jobs, reducing unemployment. and balancing trade deficits. Reshoring doesn't always have positive results, where a company underestimates the costs and the logistical planning involved. [...] Reshoring is the process of returning the production and manufacturing of goods back to the company's original country. Reshoring is also known as onshoring, inshoring, or backshoring. It is the opposite of offshoring, which is the process of manufacturing goods overseas to try to reduce the cost of labor and manufacturing. ### Key Takeaways

• Industrials: Onshoring Generates Tailwinds Across Segments

  With these drivers in place, chemical and specialty materials companies with onshore manufacturing capabilities can differentiate themselves from offshore-based competitors as their customers look to localize and secure their supply chains. [...] With these drivers in place, chemical and specialty materials companies with onshore manufacturing capabilities can differentiate themselves from offshore-based competitors as their customers look to localize and secure their supply chains. [...] With this rise in onshore and nearshore manufacturing comes growth opportunities throughout the industrials landscape. Several key segments will experience boosts in demand and offer industrial investors appealing avenues to put capital to work and create value. “The onshoring trend is a significant long-term value driver across industrials,” says Webb. “We’re excited to see the growth opportunities it will continue to create for our clients and their investors.” ### HW Insights