It has been over two years since the Coronavirus pandemic first struck the U.S. and altered life as we knew it. One of the significant effects of its aftermath that’s still an issue across the globe today is supply-chain disruption. The result is higher prices as well as a shortage of goods and services.
As businesses are making an effort to return to their pre-pandemic status, they are discovering that low inventory, a shortage of truck drivers, and fewer workers are all contributing to supply-chain problems. To address the huge number of job openings in the warehouse industry, major retailers are using incentives like additional benefits to entice workers. There are several other ways companies are trying to get their businesses and the U.S. economy back on track. One is to source goods from domestic suppliers.
Benefits of Using Domestic Suppliers
U.S. businesses have long preferred doing business with overseas manufacturers primarily as a way to lower their production costs, but the recent supply-chain turmoil has made apparent the advantages of sourcing domestically.
More streamlined procurement
As opposed to overseas manufacturing companies, domestic suppliers are positioned in close proximity to the sellers. Less distance means decreased travel time of shipments as well as certain reduced logistic services like sea freight. Additionally, onshore suppliers are better acquainted with the market here in America than those in other countries.
While importing can save businesses money due to less bureaucracy and lower wages in other countries, it’s not always the case. The price tag for logistics is astonishing; the expenses of sending and receiving products can add up quickly. Transportation, warehouse storage, and shipping to other suppliers and companies all add to the bottom line. Localizing your supply chain won’t just open up room in the budget, but it could actually increase revenue. When the word is out that your company can meet demand, it will attract interest from other companies and could potentially create growth.
Ability to meet customers’ demand
Companies can more easily scale their business when opportunities arise because lead times are reduced and they can make purchases when they need. Domestic suppliers can also provide improved communication and coordination compared to their overseas counterparts.
The more links to your supply chain (and greater distance to them), the less control you have. Using domestic suppliers gives companies the ability to more easily travel to the site of manufacturing to inspect products and lessen the risk of discovering quality issues. Another risk factor that is avoided is disruption due to geopolitical issues in other countries.
Improves local economy
Many buyers prefer locally-sourced products, and businesses can embrace that by promoting themselves as a locally-sourced company.
Using domestic suppliers reduces shipping and storage needs, which lowers your overall carbon footprint. This can build consumer confidence and loyalty. Energy-conscious consumers want to invest in like-minded brands and are increasingly insisting on more sustainability from businesses.
Spectro Coating Leading the Way
The textile industry was at the forefront of the effort to respond to the demand for personal protection equipment (PPE) amidst the demand for masks and other healthcare products as the COVID pandemic came to rise. It quickly responded to supply challenges by manufacturing much-needed items stateside. This has proven an effective case study for how businesses can innovatively move forward by switching to domestic manufacturing partners. American businesses must find solutions to supply-chain woes, as it may take quite some time for them to resolve and for the economy to return to pre-pandemic levels.
Spectro Coating Corp. Located in Leominster, Massachusetts is an excellent example of a domestic supplier that is adapting to industry needs through innovation and diversification of products. Spectro is one of the only flock producers in America. They provide creative solutions for their customers in a variety of markets, including the military, packaging, medical, automotive, and hospitality industries.
“We’ve seen an uptick in activity of companies looking to purchase materials domestically. With continued supply chain issues and shipping costs, companies are interested in US manufactured products. We have the ability to handle most rolled goods for water-based coatings, flocking, glitter coating, and other added value processes. We have the capacity and expertise to help set up domestic production and reduce their supply chain issues,” says Raj Shah, VP at Spectro Coating Corp.
Spectro has been manufacturing in America for over 30 years. They also strive to source from domestic suppliers wherever possible. In addition, the Spectro team prides itself on being a good steward of the environment. They use water-based, non-toxic, adhesives and coatings with low VOC chemicals and source raw materials locally when possible. In the last several years, they have added solar panels to supplement our electric and hot water usage.
The Spectro Team has over 200 years of combined experience in Textiles and Coatings. They will work with your team to understand your needs and solve challenges. If your business needs a partner in the fiber industry, contact Spectro to get the process started.