More Small Businesses Returning To USA To Manufacture

Back in 2004, a then-fledgling New York-based adjustable bed manufacturer assumed he would be forced to produce key components overseas. But nearly a decade later, he’s making some of his company’s beds in the good ole USA. His company is one of many small businesses rethinking their off-shoring philosophy.

Martin Rawls-Meehan, owner of Reverie, first shipped off parts of his company’s production to Taiwan to take advantage of lower labor and other costs. Plus, it was closer to his Asian customers, according to a recent Associated Press story.

Since then, skyrocketing shipping costs -- as much as 60 percent higher -- prompted him to change course and reinvest the money saved by moving much of his company’s manufacturing back home to improve the overall process.

Said Rawls-Meehan to the AP: "The mentality was that products were going to be manufactured more cheaply in Asia than in the U.S."

His assumption turned out wrong. With manufacturing closer to him, he’s able to quickly adjust his production to his customers’ whims and to capitalize upon increasing innovation in the U.S. manufacturing industry, which is second to none worldwide on the advanced manufacturing front.

Baby products manufacturer Cotton Babies is also part of the movement of small businesses relocating its production back to U.S. shores. The Denver-based company reshored its cotton diaper manufacturing from Egypt, halving the time required to get products to market.

Pennsylvania’s Reading Truck Body faced a plethora of issues when it manufactured in China -- from disorganized shipments to long delivery times, causing customer consternation and frustration among their employees.

Observed Craig Bonham, the company’s national sales director, to AP: "You feel a larger sense of dependency when you're relying on someone that far away."

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