Manufacturing Trends: The Rise of Localized Manufacturing and Near-Sourcing

It’s no secret that COVID-19 is affecting not just citizens but also the entities and industries they create. Staying afloat as a business during this tough time requires an open-minded approach – and sometimes a new business model! Savvy liquor manufacturers, for example, are now switching to make hand sanitizer, while film companies are often sending their latest works straight to streaming services.

The commercial machining and industrial fabrication industries are no strangers to this sort of “from the ground up” change. Given the restrictions of the pandemic and the disruption to larger supply chains, OEM companies like us are reenvisioning how we get our work into the hands of our customers. And the industry as a whole may have found the solution that both gives businesses an edge and better provides for customers: localized manufacturing and near-sourcing.

Understanding Localized Manufacturing & Near-Sourcing

Localized manufacturing is adjusting a business’s approach to be more in-tune with local markets. In comparison, near-sourcing is when a business geographically shortens its supply chain.

These two terms are closely related but not entirely identical in definition. They both can relate in part to the practice of creating a product close in geographical location to the consumer. This, of course, was a concept that existed before the pandemic. However, the rise in its importance in the OEM and custom steering columns industry, as well as its increasingly beneficial nature, can be attributed in part to the global health crisis.

Localize Manufacturing for Broken Supply Chains

As the pandemic shocked supply chains, it became harder and harder to maintain extensive or complex paths from producer to consumer. The notorious toilet paper shortages, for example, can be blamed in part on a complicated logistical system that suffered when times got tough.

However, near-sourcing and localized manufacturing have helped circumnavigate this issue by providing for communities locally and simplifying a product’s journey from producer to consumer. On a larger scale, this could result in fewer shortages and a more stable stock.

For Customization and Agility, There Is No Better Option

It’s not just the pandemic that makes localized manufacturing and near-sourcing productive. They’re both perfectly good concepts long-term. Working with a large-scale company means that getting exactly what you need can be difficult, and making changes to a product isn’t simple to do. Because localized producers are smaller and better able to pivot, customers of all sorts can get the perfectly unique parts they need.

Support American Businesses and Workers

By investing in businesses taking advantage of these trends, customers create jobs and support local economies – something that’s no doubt needed right now, when the future is more uncertain than it has ever been.

Shop Local for Your Custom Steering Column Needs

Fast turnaround times, great customer service, and customized steering columns – all are benefits of partnering with the localized BSM North America of Burnsville. We take care of everything from design to production, so simplify your supply chain and give us a call today at 952-890-8146 to talk to an engineer.