The hottest trend in U.S. manufacturing is reshoring, and this means big opportunities for plastics manufacturers. According to a recent study by Boston Consulting Group, 54% of all U.S. companies with more than $1 billion in revenues are planning or considering reshoring at least some of their manufacturing. Wal-Mart's U.S. manufacturing initiative promises to buy $250 million in U.S.-made consumer goods over 10 years. All of this reshoring will drive the need for plastic parts and products.
Cost comparisons and time-to-market research suggest that companies should be manufacturing local products in local markets. Even with the devaluation of China's currency this month, which instantly made Chinese products less expensive, interest in making products locally continues to gain momentum. This means that many plastics manufacturers will leave China and establish production facilities back home in the United States and Europe.
But it's not that easy. Plastics processors cannot expect to simply pack up their equipment, turn out the lights and lock the doors. There are issues to consider when leaving China.