Alternative? No, we are better than offshore!

With COVID related supply chain disruptions, domestic OEMs have been scrambling to find alternative suppliers in North America. Those same disruptions shed a light on glaringly obvious exposures. Possible denial of access to key components, chemicals and even technologies because of years of domestic OEMS sourcing for reduced cost.

Now domestic OEMs are reassessing their sourcing strategies, and government is reassessing strategic access to critical items. Reshoring, which has been an active philosophy for several years now, has received a shot in the arm (no pun intended).

Sadly, being an alternative to offshoring HAS OFTEN BEEN how we are considered here at PlastiCert. We have time and again, shown we are a superior option to offshoring since the phenomenon started. From a pure pricing standpoint, we would demonstrate we were comparable to offshore, comparing total landed costs. Repeatedly, for both tooling and components, we were competitive, yet told that the OEM had decided to offshore, to keep up with their competitors. They had to prepare for the eventuality of having to source offshore. Since that time, offshore sources have even started not charging for tooling and wrapping that cost into the final product. OEMs were quick to jump on that option, seeing a less expensive path for getting to market.  

Now those poor decisions by OEMS have come to roost and we are seeing numerous inquiries from prospects where they have sourced offshore and cannot get product or their mold back.

So, taking into consideration that we are competitive with offshore pricing AND we are readily accessible, we ARE a better option than offshoring.

We have always acknowledged that sourcing into offshore is a means to sell into that market. That is a viable plan. Sourcing offshore for pure price gains is not, as has been demonstrated over the last year.

Now industry experts and the government are trying to tell us what we have known all along. If a situation seems too good to be true, it likely is. We say source for the situation you find yourself in and the level of risk tolerance you have.  

So, if you are looking for mid-level volume and cannot risk being ignored or not given access to your tooling, give us a call. In just the last week, a Commodity Manager that moved on from her position said, “Congratulations! Great company….miss working with you” and a design engineer whose company recently awarded us a new program exclaimed, “you are the best injection molder I have ever worked with”.

We are responsive and our doors are always open. After all, we are the embodiment of Minnesota NICE!!