For years, offshore plastic manufacturing was a default strategy for cutting costs. Many companies moved injection molding operations to China, Vietnam, and other low-wage regions where labor and overhead were cheaper. Ocean freight was slow but reliable, but the cost advantages outweighed any delays.
The Previous Model No Longer Works
Labor costs have risen steadily in China over the last decade, making the wage advantage far less compelling. Meanwhile, shipping has become anything but predictable. The COVID-19 pandemic exposed deep vulnerabilities in global supply chains. Even now, manufacturers are still dealing with the fallout: congested ports, container shortages, capacity issues, and most recently, the effects of Red Sea disruptions—where Houthi attacks have diverted shipping routes—and Panama Canal delays due to drought conditions.
Tariffs are also back in the spotlight. U.S. tariffs on Chinese imports, including many plastic parts and raw materials, have increased costs significantly. With the ongoing “tariff war”, new tariffs are expected. For OEMs, this uncertainty makes budget planning difficult. Tariff shifts can happen quickly and with little warning, potentially erasing cost advantages or creating surprise spikes in pricing. Onshoring removes that variable entirely.
The cost of waiting has become too high. Lead time volatility, production interruptions, and strained customer relationships are pushing companies to bring production back closer to home. Onshoring isn’t the right move for everyone, but for many, the financial and operational benefits outweigh the logic of going offshore. If you’re considering reshoring, here are the key reasons why now may be the right time.
Shorter and More Reliable Lead Times
When you manufacture overseas, your supply chain spans thousands of miles and includes dozens of potential failure points: ports, customs, container availability, ocean freight delays, inland transit bottlenecks, and more. Those delays translate into late shipments and missed opportunities. In a market where speed matters, you risk losing customers who won’t wait.
Manufacturing in the U.S. shortens the supply chain dramatically. You regain control over timelines, can respond more quickly to demand changes, and reduce the need for excess safety stock. You also avoid the compounding effect of global disruptions—from geopolitical tensions to climate-related shipping issues. Faster turnaround gives you an edge.
Better Collaboration and Engineering Support
Product design and tooling changes are a normal part of the manufacturing lifecycle. But when your manufacturer is overseas, time zone differences, language barriers, and communication gaps slow everything down. Worse, critical feedback on part design or tooling may come too late to avoid costly mistakes.
A domestic partner gives you direct access to engineering teams, project managers, and decision-makers. If your contract manufacturer practices Design for Manufacturability (DFM), having those conversations early can lead to faster tool builds, more efficient production, and lower per-part costs. It’s easier to iterate, test, and problem-solve when your partner is a short drive away—not a day-long flight.
Increased Supply Chain Efficiency
Lean manufacturing strategies like just-in-time production depend on predictable supply. However, long transit times and offshore uncertainty force many companies to carry excess inventory just to keep production running. That ties up working capital and takes up warehouse space.
Onshoring injection molding eliminates much of that risk. By producing parts closer to where they’re used, you reduce the need for buffer stock and improve inventory turns. That means more cash flow and less waste. In today’s economic climate, efficiency matters more than ever.
Lower Environmental Impact
Onshoring can also support sustainability goals. Shorter shipping distances reduce emissions, and working with U.S.-based manufacturers ensures compliance with domestic environmental standards. For companies focused on ESG performance or reducing their carbon footprint, domestic sourcing is a measurable step forward.
What to Consider Before You Reshore
Reshoring is a strategic decision. It’s important to evaluate your total landed cost—not just labor and freight, but also inventory holding costs, tooling rework, missed revenue from delays, quality issues, and tariff exposure. Many companies find that domestic production is more competitive than expected once all those variables are accounted for.
Why Companies Choose AdvanTech
At AdvanTech, we help OEMs bring plastic parts to market faster with responsive service, reliable supply, and lean manufacturing support. Our flat, agile organization allows us to move quickly and keep your project on track. We maintain competitive pricing by purchasing resin by the railcar and storing it on-site, so material is always available when you need it.
With 4- to 5-week lead times on reorders and just-in-time inventory options, you can reduce your overhead without risking stockouts. Our rail-served facility in Woodstock, IL, offers lower shipping costs and faster turnaround for companies in Chicago, Milwaukee, and the surrounding areas.
Whether you’re reshoring, transferring tooling, or launching a new part, we’ll help you simplify production, strengthen your supply chain, and keep costs in check.
Contact us to start the conversation.