Are you working harder to keep a smaller share of the business than you were 10 years ago?
You’re not alone.
And you can blame globalization and automation for the situation you find yourself in.
(There. We said it.)
The world has changed…
…just like it did during the Industrial Revolution…
…just like it did after the Internet was widely adopted…
…and just like it will continue to do in the future no matter what.
Every business now faces two options:
- Ignore the changing world and keep doing what you’ve always done, until you can’t do it anymore
- Look for new opportunities within the changing world so you can adapt, survive, and even thrive
Because globalization is as much an opportunity for you as it is a threat.
It just depends on how you respond.
What happens when you ignore globalization
During a recent trip to visit mold makers in the US, we spoke to a US manufacturer which was down to a skeleton crew and using only 10% of their injection presses.
We got an earful of the evils of outsourcing, as they lost their main customer to Mexico a few years ago.
Because they couldn’t compete on the initial mold creation, they lost 100% of the business.
If you end the story here, it’s a sad one. “Offshoring is evil.”
This is exactly what the owner said as we looked around the quiet, almost empty factory floor.
Then I asked if having a good chance of recapturing 90% of that revenue would be of interest.
Because when you use selective offshoring to remain competitive, you can still win manufacturing business.
Think of all those employees who could be working on a lean assembly line because of molds made in China by Jade.
Think of all the revenue this company could be booking because they are easily as competitive as the next business.
What they’ve lost in mold profits, they more than make up for in increased manufacturing.
When you look for opportunities in globalization rather than threats, you’ll open up a whole new world of doing business and making money.
And, more importantly, you’ll step confidently into the future.
Now let’s look at a story with a happier ending.
What happens when you embrace globalization
Not too long ago, a US mold maker watched his orders shrivel.
He couldn’t meet the increased demand or the competitive pricing for molds.
And you can’t blame this quality mold maker for the situation, either.
The US imported over $450 million worth of injection molds from China in 2017.
The US simply does not have the capacity to make this amount of injection molds, regardless of pricing concerns.
So this smart mold maker did what dozens of our clients are doing.
He looked to globalization to modernize his business and gain the capacity and price competitiveness he needed to win business.
Jade now makes dozens of molds per year for this mold maker and others like him.
When you look at globalization as a way to gain a competitive domestic edge, all your options change.
What can selective offshoring do for your business?
Even if you’re still on the fence about offshoring, you owe it to yourself to explore the options.
We’ve helped dozens of mold makers and manufacturers recognize opportunities in selective offshoring so they can increase production in the US.
You won’t get this perspective from any other mold maker in China because they don’t share in our mission of reshoring business to the US through the 90/10 rule:
The overall spend for most plastics programs should be 90% on-shore with only 10% spent offshore.
Are you ready to explore how selective offshoring can help you gain a competitive domestic advantage?