Manufacturing close to customers means timely delivery of spare parts. When you rent a piece of equipment, you don’t want to be without it for weeks. On the contrary, as soon as something breaks down, it should be replaced immediately. The closer your supplier, the quicker he’ll get you what you need.
How does this approach impact the overall cost?
Shorter distances mean lower transportation costs. Since your manufacturer isn’t across the globe anymore, your bill won’t include outrageous shipping charges. We pass those savings directly to you!
What are some examples of how proximity impacts patients?
A patient who can’t walk due to surgery or injury doesn’t want to wait for a hospital bed. A hospital bed delivered next day by a company located in GTA is far preferable to one coming from another continent. And while a medical equipment provider might be able to deliver a bed quickly enough, that same provider is in a much better position to understand local regulatory requirements.
Is there a difference between local manufacturing and local sourcing?
Yes, absolutely. While having a local distributor may still involve sending equipment from somewhere else, manufacturing locally involves building the equipment here. That way, you’re not reliant on a distant supplier. Plus, local manufacturing makes customization easier. And with the ability to make changes based on customer input, you can develop products that fit local needs.
What are some key benefits of reshoring?
There are many. With reshoring, turnaround times tend to be shorter because equipment can be shipped out sooner. There are fewer logistical hurdles to navigate. And since communication tends to be clearer when you speak the same language and share the same culture (not to mention being in the same time zone), problems tend to be resolved faster too. Locally made equipment is generally safer and more compliant with regional laws and standards. Spare parts are typically readily available locally which saves time when repairs are needed. Finally, local factories are more likely to innovate and stay competitive.
Are there any potential drawbacks to reshoring?
One major drawback is that initial startup costs are usually very high. Building a factory takes a lot of capital. And until those facilities begin producing items at scale, costs per item will be relatively expensive compared to larger-scale operations in developing countries. Additionally, as with anything else related to globalization — there could potentially be unintended cultural impacts of reshoring.
Do doctors, nurses and physical therapists benefit from the creation of a domestic supply chain?
Definitely! One reason is that they have a direct connection to their suppliers. They can call them up and say “this design isn’t working” or “we really like this feature.” They’ll see firsthand how their feedback translates into tangible results. But even beyond the obvious benefits of faster problem-solving and better equipment design — domestic supply chains promote continuous improvement in ways that global supply chains simply cannot.
Does reshoring enhance mobility?
Absolutely! The devices that enable mobility—wheelchair lifts, scooters, walkers, lift chairs, etc.—need to work reliably and safely for years. And with locally made equipment, they’re more likely to last. Further, domestic manufacturers can adopt new technologies more quickly and easily than foreign manufacturers. So whether a doctor wants to test new wheelchairs in his practice or patients want lighter-weight wheelchairs that are easier to manoeuvre, domestically sourced devices are more likely to address these needs efficiently.
Can hospitals expect higher quality standards with reshoring?
They definitely should. First, there’s the issue of oversight. Domestic manufacturers are subject to strict quality controls. Second, domestically manufactured equipment is designed specifically for U.S. patients; third, testing is done on-site rather than in an offshore lab; fourth, there’s greater transparency regarding material usage; fifth, domestically-made equipment has proven itself over generations; sixth, compliance with regional regulations and standards is ensured; seventh, warranty claims are handled more quickly; eighth, repair parts are always stocked locally and available for immediate shipment; ninth, domestic manufacturers adhere to industry-wide quality assurance guidelines; tenth, hospitals can demand accountability from their domestic vendors in ways they never could before.
Will the current global trade situation cause an increase in local manufacturing?
Without question! Companies can no longer afford to take risks on unreliable supply chains. If your competitor is able to manufacture locally but you aren’t — that gives him a huge advantage. Hospitals, particularly, can no longer count on getting the specialized medical equipment they need in a reasonable amount of time. Furthermore, the added risk of trade disputes or natural disasters disrupting imports only adds fuel to the fire.
Can reshoring positively impact employment rates?
It definitely can! Every factory job creates multiple additional jobs around it. Logistics employees will be hired to manage shipments locally. Maintenance personnel will be employed to keep the machines running smoothly. Accounting professionals will be hired to handle financial transactions. Salespeople will be employed to market the finished goods. This creates a ripple effect throughout an area’s economy.
Could reshoring lead to increased innovation?
Undoubtedly! When manufacturers and consumers live near each other — communication flows more freely. Ideas flow more freely. Feedback is received almost instantly. All of this encourages innovation in ways that were previously impossible.
Is there any evidence of companies already starting to resell domestically?
Plenty! Medical companies such as Medtronic and Becton Dickinson are already taking steps towards establishing manufacturing capabilities within the United States. Other companies including Stryker Corporation and Baxter International Inc., among others, have plans for similar projects.
Is there any reason why I shouldn’t consider reshoring my business operations?
While creating a new facility will require a significant upfront investment — long-term rewards abound. Creating a new domestic facility provides the opportunity to grow your business organically and establishes you as a leader in your field.
