U.S. Executives Look for Supply Chain Reshuffle
- July 7, 2022
- Posted by: Quatro Strategies
- Category: Manufacturing
Onshoring, reshoring and nearshoring have become the latest buzzwords among U.S. executives, who are discussing to find ways to ease the impact of global supply chain problems. There are also signs that they want to take action and go beyond just talk on these plans. The construction of new manufacturing facilities in the US has soared 116% over the past year. Meanwhile, all other building projects combined have increased by just 10%.
Semiconductor giants have started building massive factories in and around Phoenix. Intel is building two just outside the city and Taiwan Semiconductor Manufacturing Co. (TSMC) is also constructing one in it.
Aluminum and steel plants have been built across the south, including Novelis’ Bay Minette, Alabama; US Steel’s Osceola, Arkansas and Nucor’s Brandenburg, Kentucky facilities.
All these new semiconductor and steel facilities order air compressors, which will be produced at an Ingersoll Rand plant near Buffalo, New York. The plant had been shuttered for years.
Many smaller firms have been making similar moves, though not all are examples of reshoring but some are designed to just expand capacity.
The plans, either reshoring or expansion, all point to the same thing: The companies look for a major reassessment of supply chains in the wake of port bottlenecks, parts shortages and skyrocketing shipping costs that have wreaked havoc on corporate budgets in the US and across the globe.
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