If you have ever been caught in a highway traffic jam after an accident you know that traffic doesn’t clear up immediately. Supply Chain and Operations explain this effect using Queuing Theory. Queuing Theory tells us that slowdowns will persist, and secondary reactions will occur complicating manufacturing for some time. COVID-19 is likely to be a “complicating issue” for at least 1-2 years. Manufacturers looking to survive, even thrive, in the current business climate need to make their supply chains resilient and secure.
One way to ensure supply chain resilience is by securing your supply chain through “reshoring”. ADL technology, located near Columbus Ohio, is a contract manufacturer of printed circuit board assemblies and final products, assembled to your specifications. We also provide prototype and electronic design services to support new projects or the evolution of your current products. Our preferred bare boards are sourced from US partners, further reducing supply chain complexity and risk. Reshoring with ADL often provides total cost of ownership savings. Studies have shown that 40-50% (depending on tariffs) of current work can be reshored profitably1. In addition to lowering costs, reshoring reduces risk, speeds delivery and supports US manufacturers.
Off-shored items are becoming “stuck in traffic” due to issues relating:
- Skilled labor shortages
- Movement of raw materials to build sub-components
- Shipping issues of finished sub-components
- Long supply chains that create risk, add unnecessary cost, and provide a lack of resiliency
Reshoring to the United States reduces risk, saves money and supports U.S. industry. . Contact ADL to learn how we can partner with you to build the components that your company needs. We support industrial and OEM in a variety of markets including lighting, sensing, power supplies to controls.
- Leanshoring TMRevitalizing Domestic Supply Chains and Advanced Manufacturing Capabilities (link: https://www.ame.org/target/articles/2020/leanshoring%E2%84%A2-%E2%80%93-revitalizing-domestic-supply-chains-and-advanced-manufacturing)