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January 05, 2022 08:30 AM

Kickstart: A reshoring surge?

Rhoda Miel
Managing Editor
Plastics News Staff
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    Miller Manufacturing Co.
    A reshoring surge?

    We've been hearing a lot of anecdotes about reshoring for several years now, although it's a bit hard to nail down just how many jobs have been added to U.S. manufacturing.

    Yes, there are some statistics. The Reshoring Initiative, for example, says 1 million manufacturing jobs were added between 2010 and 2020, with expectations that those numbers will increase as companies realize "the need to shorten supply chains and produce goods at home," the Initiative noted in a 2020 report.

    Researchers with Kearney noted in another report that the pandemic briefly slowed reshoring moves, but the trend toward bringing production to the U.S. did pick up again.

    As always, it may take time for statistics to catch up with individual cases, but this week Plastics News had three stories in just two days about companies investing in both reshoring and "near shoring" with manufacturing just outside the U.S.:

    • Miller Manufacturing Co. is integrating the former Lakeland Tool and Engineering Inc. in Anoka, Minn., into its production to meet increased demand for its pet and farm animal products.

    "We are reshoring products currently being made in China and other global locations and many of these products are in our new facility in Anoka," CEO Dan Ferrise told reporter Catherine Kavanaugh. "Buying American is a big part of our strategy, and this strongly reinforces our commitment in doing so."

    • Brecher Manufacturing LLC is adding production capacity in Riverside, Calif.

    The company told PN correspondent Jeannie Reall that it has worked with partners in China but has seen a "huge spike" in demand for the convenience of U.S. manufacturing.

    • Medical molder UFP Technologies Inc. of Massachusetts acquired DAS Medical Inc., a maker of medical sheets, covers and pouches, for $75 million recently to add DAS' production in the Dominican Republic to add lower-cost manufacturing close to its U.S. base, reporter Sarah Kominek wrote.

    With concerns still growing about supply chain issues and slow transportation through ports, don't be surprised to see more investments in local — and nearby — production. And hopefully, we'll have more numbers to back up those individual stories soon.

     

    Breaking a very long winning streak

    Our sister paper Automotive News notes that Toyota sold 2,332,262 vehicles in the U.S. last year while GM reported sales of 2,218,228.

    The Japanese automaker — which AN reporter Larry Vellequette noted didn't even sell its first vehicle in the U.S. until 1958, when GM's 90-year sales streak was already 27 years old — won out with a global footprint that allowed it to more easily manage the global microchip shortage that has plagued auto production.

    Toyota also was able to retain the global auto sales crown, marking its second year beating Volkswagen AG to that crown.

    Another milk packaging alternative

    A University of Michigan study looking at the most sustainable containers for milk sees an opening for a jug that can combine the best attributes of plastic and glass.

    While high density polyethylene remains the most popular container for milk, concern about shortfalls in recycling systems has some dairies wondering about alternatives, noted Lester Graham, a reporter for Michigan Public Radio.

    Paperboard cartons are even less likely to be recycled, and while reusable glass jugs have some fans, there are drawbacks, Greg Keoleian, director of the Center for Sustainable Systems at the University of Michigan, told Graham.

    "Glass is heavy, so it takes energy to transport," he said. "After the glass bottle is reused multiple times, if it breaks, you want to make sure it gets recycled and recycling rates for glass are also low."

    Keolein says an alternative idea may be a heavier-weight HDPE or polycarbonate jug that can be refilled multiple times before recycling, if consumers are willing to get into the habit of sending jugs for cleaning and reuse.

     

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