4 MIN. READ
The risk of interrupted supply chains has always been present when dealing with overseas manufacturing.
In a rude awakening for many Americans, the coronavirus (COVID-19) has demonstrated how important domestic manufacturing and sourcing is to our well-being.
Coronavirus Ripple Effects
The coronavirus has extensively damaged both the economy and psyche of the United States.
Anxiety levels have risen as media coverage reaches a fever pitch and people worry about what the future holds. The stock market has plummeted nearly 3,000 points, the largest such drop since 1987.
Airlines are reducing flight schedules to contend with a dramatic drop in passenger bookings. Oil prices are below $30 per barrel, and consumer spending is down as people are increasingly coming under voluntary or mandatory quarantines.
Outsourcing Breaks Down
These shocking effects are amplified by our reliance on overseas supply chains. Since the 1980s, companies have enjoyed lower production costs by utilizing foreign manufacturers. Domestic manufacturing plants were shuttered, with the resulting loss of jobs and capabilities chalked up to the price paid for globalization.
The United States was left dependent primarily upon China for many of its goods, electronics and medicines. This practice continued steadily until the Trump administration began the reshoring movement to bring manufacturing back to the United States.
Rebuilding national manufacturing capabilities lost over the course of more than 30 years cannot be done overnight.
That capability was still in the midst of regeneration when the COVID-19 virus struck the Wuhan province in China.
Suddenly our major trading partner was at risk of a complete shutdown. As the virus spread among the Chinese population, hundreds of manufacturing plants in the country ceased operation as workers were sent home under quarantine. In an instant, the entire world understood the wisdom of keeping manufacturing domestic.
The unfortunate irony of the outsourced economic model can be illustrated by the demand for certain products during this crisis.
Surgical masks are being recommended to help prevent transmission of COVID-19. However, 50% of the world's surgical masks are made in China, the country of origin for the coronavirus.
Additionally, many of the world's drugs are made in China under poorly regulated conditions, leaving billions of people at risk as the country continues to limit production in an effort to stem the advance of the virus.
Domestic Manufacturers to the Rescue
According to MNI’s database of 400,000 U.S. manufacturers, there are nearly 1,500 companies located here in the United States that specialize in manufacturing medical and surgical equipment.
MNI data shows that Just under 169,000 people are hard at work producing the surgical and medical instruments needed to combat COVID.19% of these companies, however, import raw materials/components to manufacture their products. In less than a month, these manufacturers ramped up production of critical items that could no longer be imported with certainty.
In addition to fulfilling domestic needs, 64% of these companies distribute some of their products to other nations.
These companies are also positively contributing to our economy, something that is critically important during this tumultuous time.
MNI reports that current sales are $263 billion, with only 1% of companies experiencing sales growth over the last year.
Both of these metrics are likely to increase soon as global demand spikes.
A continued focus on local sourcing is just the thing that is needed to recover from the rapid and severe economic effects of the coronavirus.
Companies that manufacture locally will hire locally, giving people who may be facing job loss in one industry an opportunity in another.
Keeping supply chains domestically based will also protect our ability to keep shelves stocked regardless of what happens in the rest of the world.
Source Local and Communicate Effectively with MNI's Industrial Solutions
It is an especially crucial time for U.S. manufacturers and industrial suppliers, as production demand for vital products and services surges.
Since, 1912, MNI has been a go-to resource, profiling 400,000 U.S. manufacturers and suppliers of more than 10,000 products and services. If you need industrial products, services or supplies, or want to contact manufacturers directly, please take a moment to learn about our solutions.
For Industrial Sourcing
IndustryNet is a free industrial marketplace, connecting buyers with 400,000 U.S. manufacturers and suppliers of more than 10,000 products and services.
Visitors to IndustryNet can set up a free user account, build custom lists of potential suppliers, send quote requests, download company catalogs, view company photo and video libraries, and more.
IndustryNet is also a direct path for U.S manufacturers to increase their visibility among domestic industrial procurers. Learn more about our marketing solutions.
For Industrial Prospecting
IndustrySelect provides access to MNI's database of 400,000 U.S. manufacturers on a subscription basis, providing detailed profiles of each company. Subscribers can select up to 30 data points on any manufacturing company in the U.S. to help identify or pre-qualify leads. Try a free demo here.
Company profiles also include the contact information for hard-to-find executive decision-makers.
