For manufacturers seeking to reduce production expenses, outsourcing of injection molding and/or processes to other countries is an industry trend worth noting. According to one medical device industry expert, the cost difference between injection molding a part in Asia versus North America is actually very small because the labor component is negligible. Electricity is a major component of injection molding, and energy costs are rather universal. So, what’s the element driving the nearshoring trend? Shipping.
The high cost and lengthy shipping times associated with manufacturing components or finished products overseas is forcing many U.S. companies to evaluate their operations and manufacture and ship from locations that are geographically closer. Companies benefiting from nearshoring cite faster delivery, reliability and cost-savings as major factors in their success. Creating long-lasting relationships with injection molders who can act as a partner in your product development process and assist with design for manufacturability also has major benefits. These reasons make us anticipate even more organizations shifting to nearshoring in the near future.