When a leading U.S. manufacturer of scrap recycling and demolition attachments hit repeated delays in its overseas supply chain, the company knew something had to change.
Long lead times, fluctuating tariffs, and unpredictable shipping schedules were cutting into production—and profitability. Their offshore partners couldn’t keep up with the pace of demand or the flexibility required to adapt.
They decided to pursue a reshoring strategy, an ambitious transition to say the least. In this post, we’ll explore how they navigated that transition and found reliable suppliers who could deliver the parts they needed on time and closer to home.
From offshore challenges to domestic solutions
Like many mid-sized manufacturers, the manufacturer had relied on overseas suppliers for years. But with growing uncertainty—both economic and logistical—those once-reliable relationships became liabilities. Each delayed shipment meant:
Volatile supply chain: Lead times were expanding significantly due to logistics bottlenecks, creating months-long delays and forcing companies to hold excess inventory to compensate.
Rising freight costs and tariffs: Ocean freight costs more than double in some lanes, and tariff fluctuations made cost forecasting nearly impossible.
Changing customer expectations: Clients in North America began demanding faster response times, more frequent design changes, and shorter production runs—needs that the offshore model couldn’t easily accommodate.
Despite the sunk costs and legacy infrastructure tied to overseas production, leadership conducted a comprehensive review—and the numbers told a new story.
Harry Moser, founder of the Reshoring Initiative, notes, “When companies dig into the numbers—total cost, not just price—they often realize they’re paying more than they think to stay offshore. The value of control and reliability starts to outweigh the old cost model.”
Moser says that by shifting to domestic suppliers, manufacturers are often seeing savings in unexpected places. That includes inventory, which showed an average drop of 60–70%, sometimes more.
In one Illinois case he said inventory was reduced by 94%—freeing up millions in working capital that had been tied up in warehousing and safety stock.
Additionally, with engineering and manufacturing now geographically aligned, companies benefit from faster collaboration. Design tweaks that once took weeks to communicate across time zones can now be addressed in real-time—leading to smarter designs, faster cycle times, and lower production costs.
Rebuilding a supply chain for small-batch speed
For this manufacturer, those broader reshoring benefits translated into a complete rethinking of how their supply chain worked. Their operations would no longer be built around forecasting large container-loads six months in advance.
They needed flexible, on-demand support, which meant finding domestic partners who could keep up with an engineer-to-order production model that could handle small-batch, precise production at a faster pace.
A key part of that shift came with their move to Spuncast. The old model of bulk ordering and stockpiling cast parts “just in case” gave way to a leaner, more responsive process. Now, they receive exactly the components they need—no more, no less—delivered on their schedule.
“We are small enough to respond quickly to low volume orders,” says Greg Whitman of Spuncast, “and at the same time our process is so well defined that large orders do not slow us down either.” That kind of flexibility didn’t just reduce inventory costs—it aligned perfectly with their engineer-to-order workflow and gave them the agility to meet customer needs with speed and precision.
Broader trends driving reshoring
According to a recent study by Boston Consulting Group, 54% of all U.S. companies over $1 billion in revenues are planning or considering bringing at least some of their manufacturing back to the U.S. The reshoring trend is gaining momentum across U.S. industries—and the data backs it up:
- 2022 saw record-high job announcements from reshoring and FDI, according to the Reshoring Initiative 2022 Data Report.
- Critical sectors like semiconductors, defense, and EV batteries are being reshored for strategic security.
- Technology like automation, smart factories, and AI make U.S. production more cost-competitive.
- Environmental and ESG goals are pushing companies to reduce global shipping footprints.
“We just completed the national reshoring survey of OEMs and contract manufacturers,” said Moser. “And 95% of the OEMs that had reshored were either totally satisfied or quite satisfied with the results of their reshoring.”
How reshoring transforms operations
Beyond logistics, quality matters. The scrap recycling and demolition tools produced by the company are used in punishing conditions where any failure can shut down a jobsite. That meant every part had to be not only durable but consistently reliable.
Spuncast met those expectations and brought immediate, measurable improvements. With a partner capable of producing low-volume, high-quality parts on demand, the manufacturer gained:
- Faster, more predictable delivery of parts directly to the production floor, eliminating warehousing needs.
- Reduced lead times enabling quicker response to customer design changes and production schedules.
- Improved warranty handling with expedited diagnostics and replacements, minimizing downtime.
The last point is major for most manufacturers who have struggled with warranty issues with overseas suppliers. Whitman says that’s why if there’s an issue, they get the part back to Spuncast in two to three days. Replacement takes weeks, not quarters. “We solve the problem and cover the cost,” says Whitman. “That kind of accountability just isn’t possible when your supplier is an ocean away.”
How to bring manufacturing back home: A practical path forward
Reshoring isn’t about reversing a mistake—it’s about responding to today’s realities with a smarter, data-driven strategy. As Moser explains:
“Most companies choose to offshore based on price alone. But when they evaluate the total cost of ownership (TCO)—not just the unit price—they often discover that domestic production is the more profitable option.”
For manufacturers considering reshoring, Moser says there’s a practical roadmap based on best practices:
- Rethink the real cost
Start with a total cost of ownership (TCO) analysis. This helps you look beyond hourly labor rates to factor in shipping costs, lead times, tariffs, quality issues, and lost sales due to delays. Tools like the Reshoring Initiative’s TCO Estimator make this easier. For many companies, this is the eye-opener that reshoring can actually save money. - Identify the right products to reshore
Focus on high-mix, low-volume products where responsiveness and quality are critical. That’s where reshoring tends to deliver the most immediate value. - Focus on workforce readiness
You may need to retrain current employees or hire new ones with different skills. Some companies partner with local trade schools or workforce programs to close the gap and build talent pipelines early. - Use the shift as a chance to modernize
Automation, lean processes, and updated equipment can help balance out higher U.S. labor costs. Many reshoring efforts include upgrades that actually improve quality and speed. - Strengthen domestic supplier partnerships
Leveraging regional logistics, reducing minimum order quantities, and streamlining inspection and warranty processes help enable just-in-time delivery and faster order fulfillment.
Not every reshoring journey is easy
By rebuilding their supply chain around responsiveness and reliability, the manufacturer unlocked faster lead times, tighter quality control, and more agile operations.
What began as a response to shipping delays and rising costs became a long-term advantage—supporting a leaner, engineer-to-order model that delivers exactly what’s needed, when it’s needed.
Their experience reflects what more U.S. manufacturers are starting to realize.
“Reshoring isn’t just about where you make parts—it’s about how quickly and confidently you can deliver,” says Whitman. “When we’re close by, they don’t need to over-order or wait months for fixes. We help keep their business moving.”
