Reshoring in the Plastics Industry | Preferred Plastics
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Reshoring in the Plastics Industry

You’ve most likely heard a great deal about reshoring and manufacturing by now; it’s a buzzword and a popular trend, for good reason.

In fact, when the founder of The Reshoring Initiative, whose mission is to “bring good, well-paying manufacturing jobs back to the United States,” spoke at the Plastic News Executive Forum, he stated that reshoring has brought over 100,000 jobs to the country in the past three years.*

So what’s behind the reshoring trend, and why is it so appealing?

Years, ago, when manufacturers, including many in the plastics industry, were going overseas, it was because the cost of labor was so much less in other countries than it was at home. However, that is no longer the case, as overseas labor costs have increased significantly, and the savings aren’t there anymore.

Other distinct reasons for manufacturing in the U.S. include:

  • Rising overseas energy costs compared to decreasing domestic energy costs: The shale boom in the U.S. has created an abundance of cheap natural gas that’s keeping costs down for American manufacturing.
  • Increased foreign overhead and shipping costs.
  • Complexities of foreign production: Dealing with problems with international production and suppliers is very challenging, and an international supply chain is hard to manage effectively.
  • “Made in the USA” appeal: Both American and foreign consumers have demonstrated a preference for American-made products.

Due to these reasons and more, we are continuously seeing reshoring occur in the plastics industry, and in manufacturing in general. While we don’t buy international products, we do ship our American-made products internationally, so we like to think we are doing our part to promote and encourage U.S. manufacturing, and we look forward to seeing this trend continue.


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