US manufacturing revived by supply chain chaos
The Rodon Group President Michael Araten considers returning production to America a 'gamechanger'
US manufacturing revived by supply chain setbacks
The Rodon Group President Michael Araten discusses reshoring production to American factories with FOX Business' Jeff Flock.
American factories are calling production back home as supply chain bottlenecks continue to cause an international nightmare for the movement of overseas products.
The Rodon Group – a plastic component manufacturer in Hatfield, Pennsylvania – told FOX Business' Jeff Flock on "Varney & Co." Tuesday that the company is reshoring various products previously made in China like lip balm containers in 20 different colors, tinker toys by the millions and COVID-19 testing readers for hospital usage.
The Rodon Group President Michael Araten has been in the reshoring business for decades but the current state of the economy, bogged down by supply chain and inflation woes, has increased return to the states.
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According to Reshoring Initiative, more than 138,000 jobs were projected to return to the U.S. in the last year while 1,334 companies were expected to re-shore. In addition, foreign direct investment [FDI] job announcements would total to more than 220,000 – 38% above 2020 and the highest annual number recorded to date.
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According to the Wall Street Journal, shipping rates to the U.S. east coast have increased by $9,000 on average since January 2020. But Araten explained that the American production comeback is caused by the other hidden costs of the supply chain as well.
"As we go to an era where we have so much more e-commerce, then you’ve got to be more responsive to your consumer," he said. "And the only way to be close to the customer is to shore the supply chain."
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"The best case from China, you’re six to eight weeks away," he added. "Here, you’re a week away. It’s just a game-changer."
The Rodon Group is an active member of American Made Matters and the Made in America Movement which represents 20,000 American-sourced companies with a non-partisan effort to support U.S. business.