Sourcing domestically might not be enough
So, you HAVE NOT sourced your injection molding offshore. If that gives you a sense of security, it may be false.
Numerous publications and news outlets are reporting the increasing number of companies backing away from China. Supply chain issues due to COVID started the ball rolling, but more recently, concerns over the geopolitical climate have manufacturers concerned.
“The shift is a response to growing concerns about the geopolitical tensions………….” 1 Is a common phrase in many of the reports. Another publication 2 printed, “A recent political risk survey conducted by Willis Towers Watson found that 95 percent of multinational corporations are concerned about China. That’s up from 62 percent in 2020. “Overwhelming majorities of respondents believed that trends towards geostrategic competition and economic decoupling between China and the West would intensify in the future,” the report reads.
So how does this pertain to you if you are domestically sourced already? Molding returning from China must be sourced somewhere. Your current supplier is likely running at high-capacity numbers, as most need to. When they need to add in more business, they can either add more capacity, or free up capacity. With the US still iffy regarding an economic slow down with higher interest rates AND inflation, capital equipment purchasing is down. Odds are, that supplier will chose to free up capacity.
Smaller OEMs with lower volumes (<75,000 pcs /yr.), batch type orders and more involved parts like insert and over-molding will be targeted first by these suppliers looking to free up capacity.
If any or all of these describe you, you may want to be on the look out for a molder that welcomes your type of program rather than tolerates it.
PlastiCert excels at running orders of <1,000 – 5,000. We perform insert molding and over molding, as well as having materials expertise in all of the more complex engineered resins being used out there.
Wonder sometimes if you have your injection molder’s full attention? Why wait for the wave that is coming to throw your injection molding sourcing into turmoil. Be proactive and give PlastiCert a call. We are an award winning, fully domestic injection molder that PLANS to have capacity available to benefit our customers when they need parts in a hurry.