Posted by Chip Owen

Onshoring refers to the process of setting up production operations within domestic national borders. Up until the 1980s, most manufacturing companies kept their operations at home; however, the years of globalization led many companies to outsource their production overseas in an effort to lower labor, material, and transportation costs. While offshoring once seemed like the best move, many businesses are starting to reconsider. Companies have begun thinking about total end-to-end production costs rather than solely focusing on direct manufacturing and transportation costs. 

In recent years, offshore operations have seen rising supply chain issues and higher foreign production costs. As such, companies are finding that even though part costs may be lower, their total end-to-end production costs are higher. For these reasons and many others, businesses have started sourcing their production domestically again, including their injection molding operations. 

If you’re looking to onshore or reshore your plastic injection molding, D&M is here to help. Since our inception in 1972, we’ve served customers across various industries with quality injection molding services right here in the US. 

Benefits of Onshore Injection Molding

Onshore injection molding offers the following key benefits:

Increased Control Over End-to-End Production

One of the biggest advantages of onshore injection molding is increased control over end-to-end production. By keeping your injection molding processes domestic, it’s much easier to control certain operational parameters. This results in: 

  • Reduced lead times. Onshoring your injection molding operations results in faster lead times, as finished products won’t have far to travel. This not only reduces transportation costs, but it also increases inventory turns and decreases average inventory. Having lower inventory levels improves business cash flow.
  • Faster responses to quality issues. With offshore injection molding, it may take weeks or months to address defective products if they are transported by ship. While you could expedite shipments to solve quality issues, that often comes with higher transportation costs. A lower-cost offshore component becomes very expensive when you add costs associated with quality issues. By onshoring your injection molding, you can quickly and easily respond to quality problems to save on defective part costs and ensure your parts are ready to ship on time. 
  • Higher quality outputs. Although onshore injection molding can come with increased component costs compared to its offshore counterpart, the added layer of control results in higher-quality end products. 
  • Fewer communication issues. Onshoring injection molding eliminates misunderstandings due to language and other communication barriers. Communicating with your manufacturer is as easy as dialing their phone number or heading directly to their manufacturing facility for inquiries, concerns, or collaborations.
  • Easier and cheaper to audit. Onsite audits are often required to make sure your supplier is complying with all necessary specifications and requirements. Compared to offshore locations, material certifications are more readily available in the US. While an offshore supplier may say that materials meet specifications, it can be difficult to verify those assurances. Additionally, local onsite audits eliminate the need to travel across the globe, significantly reducing travel costs. 

Lower Business Risks

In addition to improving control over end-to-end production, onshoring your injection molding operations significantly reduces business risks. Production regulations and standards vary across the world. By keeping your injection molding operations domestic, it will be easier to ensure compliance with all governmental regulations. Working with a local provider also makes it much easier to enforce contracts. 

What Happens When You Offshore Injection Molding?

If a company chooses to offshore its injection molding operations to China, for example, it can cause various issues. While offshoring may come with a lower price-per-part compared to domestic manufacturing, it can lead to significant quality and delivery problems, including:

  • The inability to get the component parts they need from their supplier when they need them
  • The inability to produce and ship the final product to their customers per their commitments
  • The inability to meet changing or growing demands

These problems not only result in increased production costs, but they also jeopardize a business’s reputation with customers. As such, the lower component price is not as important as getting quality parts when you need them. 

D&M Plastics for Reliable US-Based Injection Molding

As more and more companies consider their total end-to-end production costs rather than only their direct manufacturing costs, the manufacturing industry can expect to see a continued trend toward onshoring. At D&M Plastics, we can deliver US-based injection molding services with a commitment to manufacturing the highest quality products. With a highly stocked inventory of raw resin materials and strong partnerships with multiple vendors, we can deliver the solutions our customers need without drastic changes in lead times due to supply chain issues. 

For more information about our capabilities, or for help onshoring your plastic injection molding operations, contact D&M Plastics today.