The Recent Rise of Reshoring: Why It’s Happening and Who to Contact for Domestic Metal Stamping in North America

Both providers of metal components and consumers have likely noticed a recent trend—reshoring. For those that aren’t aware of the term, reshoring (also known as onshoring or inshoring) is the process of moving manufacturing back to a company’s country of origin. This includes the United States. 

The “why” behind this is due to a few main things. One is the recent supply chain scare that everyone experienced in 2021/2022, and the post-COVID supply chain hangover. This has led manufacturers to want to move their plants closer to their point of consumption to reduce the risk of delayed deliveries while providing more support to fluctuating demand schedules. 

By choosing localized suppliers like UMP, consumers don’t need to buy components from overseas, saving them from the time and risk of getting those components to NA (North American) manufacturing locations that comes with overseas purchasing. When properly evaluated, it’s easy to see that the landed cost of components in NA is very close to parity with those sourced in low-cost countries.

Risk is just as big of a factor as predictability. If a consumer is bringing a component into NA from offshore which might take 6 weeks once it’s put on a boat, what happens if the longshoremen strike or the ports back up like they did in 2021/22?  Saving 0.02% on parts means nothing if those parts are delayed for an extended period of time.

Another main reason for the growth in reshoring is USMCA (formerly NAFTA) legislation that increased the requirements for manufacturers regarding “domestic content.” The USMCA legislation is a trade agreement between the United States, Mexico, and Canada that replaced the North American Free Trade Agreement (NAFTA) in 2020. One of the changes that the USMCA introduced was an increase in the requirements for manufacturers regarding “domestic content”. This means that a certain percentage of the materials or components used to produce a product must originate from one of the USMCA countries in order to qualify for preferential tariff treatment.

UMP (Universal Metal Products) is positioned well, with US/NA manufacturing locations that meet the requirements of “domestic content” that major OEMs want to see. This, combined with UMP’s minority ownership status, makes UMP an excellent option for OEMs of all sizes. 

UMP is a female-owned company that helps with the creation of metal components for the automotive, appliance, and industrial industries. We are able to create a variety of custom and standard components for vehicles, HVAC units, refrigerators, electronics, sub pumps, and much more. UMP is based in the United States, and our local manufacturing allows for superior production with on-time deliveries. You’ll receive the highest-quality, custom metal stamping products and services provided by a North American company that specializes in top-quality production within a timely delivery schedule. 

If you are looking for metal stamping services, contact us! We’d be happy to speak with you. We proudly work with female-led and operated companies and people of all backgrounds and ethnicities. 
To learn more about our employment opportunities visit our Careers page today.