Manufacturers have spent decades reassigning as- pects of their production programs to overseas operations or contractors, outsourcing critical segments of their supply chains to foreign suppli-
ers. This was “outsourcing,” and the manufacturers’ rationale
was to remain competitive according to global cost standards.
American-sourced materials and U.S.-based manufacturing, it
was argued, resulted in increased costs and higher prices paid
by end-users. However, in recent years, many manufacturing
businesses have taken a closer look at outsourcing’s actual
costs, and taken steps to restructure their supply chains
accordingly, a trend rapidly accelerated by COVID- 19.
Anchor Harvey, a precision aluminum forging company, has long understood the hidden costs of supportingoverseas manufacturing. From the increased costs of logistics and security, payments for insurance and tariffs, tosub-standard lead times and product quality, offshoringexpenses are commonly hidden and often significantlyexceed the tantalizingly low up-front sticker prices. Theconcealed or overlooked cost of offshoring has contributed to the rising number of companies reshoring — thepractice of bringing manufacturing operations that hadpreviously moved overseas back to where it was located initially — their manufacturing operations and supplychains.
Reshoring had been increasing even before the pan-
demic outbreak, as companies moved operations back to
the United States at record levels throughout 2018 and
2019. Using a calculation known as Total Cost of Owner-
ship (TCO) and spurred by a global health crisis, in 2020
many companies realized that American manufacturing
is safer and more cost-effective than offshoring. In the
face of the chaos in global supply chains brought on by
COVID- 19, businesses moved feverishly to reshore op-
erations — as Anchor Harvey and other U.S. manufac-
turers moved expeditiously to meet increasing demand.
Risk mitigation — Prior to the pandemic outbreak,
Anchor Harvey had taken a proactive approach to in-
sulate its operations from the effects of mandated shut-
downs and economic turbulence. We were aided by the fact
that only a few months prior, Anchor Harvey had been AS9100
certified — a standard based on organizational, quality, and
safety management processes in line with the aerospace indus-
try’s stringent requirements. The certification process meant
that just a few months before the start of the pandemic, we had
taken an exhaustive look at our risk mitigation procedures.
Anchor Harvey secured recognition as an essential business, enabling our operations to continue. Our team movedrapidly to put all federal and state health guidelines in placeand canceled all non-essential travel. Company attendance attrade shows, industry meetings, and sales calls all were movedto virtual formats.
Social distancing measures were implemented along withincreased cleaning and sanitation procedures throughout ourfacility. Strategic planning allowed us to procure significantquantities of face masks and hand sanitizer well before bothitems became scarce commodities, and these were distributedto employees for use both at work and at home.
Messaging and education — As soon as the new healthand safety measure had been put in place, Anchor Harvey began an aggressive pivot in our marketing outreach and communication efforts. Using email campaigns, social media posts,podcast discussions, television interviews, and more, we focused our efforts on companies in essential industries that wereseeking to reshore and restore their operations.
Promoting Anchor Harvey’s local manufacturing and
100% domestic material sourcing, we were able to leverage
our century-long expertise to help businesses establish new
supply chains and stateside operations.
The pandemic accelerated the pace of reshoring due to
Providing assurance on lead-times and quality proved tobe an effective way to guidebusinesses how and why to bringtheir manufacturing suppliesback to the U.S.
10FRG_Campbell_4thPg.indd 1 10/7/20 3:14PMRESHORING OPERATIONSDURING A GLOBAL PANDEMIC