How the Supply Chain Crisis Could Impact American Manufacturing

The pandemic has brought with it its share of challenges for all industries, off-road steering column producers included. With troubles maintaining a large global network of suppliers, businesses everywhere are looking for solutions that can more quickly cater to customer needs—for example, as we covered in our blog “Manufacturing Trends: The Rise of Localization and Near-Sourcing,” some are changing their procedures to better align with nearer, local markets while also shortening up their supply chains from a geographic standpoint.

However, it’s not just individual businesses that are seeing changes; American manufacturing as a whole is also morphing into a new shape thanks to this ground-shaking event. BSM North America, your Burnsville provider of steering wheel columns and industrial fabrication services, discusses how below.

American Manufacturing’s Expansion

In a broad sense, the pandemic has “highlighted manufacturers’ reliance on international networks of suppliers and logistics firms, and also exposed some weaknesses of an interdependent global supply chain,” according to Powder Bulk & Solids Magazine. In plainer terms, this means that manufacturers are now seeing some of the disadvantages that a worldwide supply chain brings with it, and are adjusting their approaches to become more self-reliant—namely by investing in American manufacturing instead.

Shipping Overseas Is Expensive

According to Reuters, Delta-variant outbreaks have slowed worldwide container turnaround rates—which in turn allows shipping companies to charge more for prompt services. In an economy that’s already been strained by the virus, many American companies are turning to manufacturing onshore instead of forking over the cash for high shipping prices. This, perhaps, might become a long-lasting trend, as many businesses have now dealt with the downsides of a geographically long supply chain and aren’t hankering to do so again.

Safeguarding Against an Uncertain Future

Nobody can predict exactly when the pandemic will become a past event; though vaccinations and masks have allowed many Americans to get back to their day-to-day working lives, variant outbreaks are still a possibility, and other countries face their own challenges dealing with the virus. Both of these factors mean that any stability seen in the global supply chain may not last. Some American businesses are shortening their supply chains to decrease risk, leading to a “renaissance in American manufacturing,” as Fox News puts it.

BSM North America: Commercial Machining, Custom Steering Columns, and More

If you’re looking to take advantage of all the benefits American manufacturing provides, we’re the steering column company for you. Give our Burnsville office a call today at 952-890-8146.