This is an original article from NIST Manufacturing Innovation Blog.

Disruptions in the global supply chain have led to a new dynamic for many small and medium-sized manufacturers (SMMs) – the need to be more strategic about “second sourcing” and reshoring. The biggest increase is in what’s referred to as second sourcing, which adds redundancies such as a second source of a supply to minimize risk while increasing options. But supply chain experts also are seeing an interest in relying long term on domestic supply sources. 

Global supply chain disruptions pose unique, unprecedented problems and opportunities for small manufacturers.

The problems are bigger for small manufacturers than large companies and the worst case is production disruption. At the very least, increasing costs lead to compressed margins or even outright losses; yet opportunities abound. Disruptions make small U.S manufacturers more valuable to big companies that are pivoting to domestic sourcing.

This article first appeared on the NIST Manufacturing Innovation Blog and is written by Samm Webb, Project and Resource Coordinator with the NIST MEP Extension Services Division.  

The persisting crisis in the global supply chain has disrupted many small and medium-sized manufacturers (SMMs) and put a premium on problem solving and short-term solutions for getting parts and supplies. While there are no easy answers to untangling these global supply chain challenges, the dynamic has created opportunity and momentum for supplier scouting. It is possible to see how the focus on supply chain management strategies and total cost of ownership will lead to more reshoring of manufacturing.

This is an original article written by Scott Schein, Director of National Network Programs at GENEDGE, part of the MEP National Network.

The pandemic revealed potential vendor-based weaknesses for many small and medium-sized manufacturers (SMMs). Late deliveries have increased, materials have become scarce, quality is less reliable, and prices have ticked upward. These issues and general upheaval in global supply chains make supply chain management an urgent focus for many SMMs.

At IMEC, we’re all about solutions. And with the invasion of COVID-19 early last year, the world had to scramble to find them. Businesses were shutting down at an alarming rate, affecting supply chains and OEMs locally, nationally, globally. Companies had to quickly find alternatives to keep the wheels turning. For IMEC, that remained especially true here in Illinois.

There is a lot of conversation right now about reshoring, but not about its relevance to small and medium-sized manufacturing firms. The basic premise of reshoring is easy to understand – bring jobs back to America by encouraging companies currently offshoring to “reshore” and purchase labor or materials from a U.S. firm. This in turn benefits the local economy and stabilizes the buyers’ supply chain by not relying on overseas partners.

Reshoring and keeping strong domestic supply chains are an even greater imperative based on what we have learned in the COVID crisis. One way to address reshoring is to focus on imported items. That's why IMEC is partnering with the Reshoring Initiative to provide a fully-funded opportunity for small and mid-sized manufacturers (SMMs) to play a vital role in import substitution for the components they can supply right here in Illinois.