Reshoring Brings a Broad Array of Benefits
We continue to see many positive trends related to metalcasting, despite the well-documented challenges that foundries face in the 2020s.
One of those positive trends is foundry modernization. American Foundry Society surveys show that more than 90% of foundries are making capital investments every year, in many cases significant investments of $3 million or more in the areas of automation, smart manufacturing, obsolete equipment replacement, and environmental controls. A second positive trend is new foundry construction. There are several new foundries in the planning and/or construction stage.
A third positive trend for the U.S. economy in general and for some foundries in particular is reshoring. This trend got underway nationally about 10 years ago and has taken on greater importance since the pandemic exposed our alarming supply-chain vulnerabilities. Not all U.S. foundries are benefiting from the trend, but for some facilities, reshored projects are now a significant part of their book of business.
In autumn 2023, the AFS Quarterly Metalcasters Outlook Survey asked foundry representatives about reshoring. Some 20% of foundries were expecting an increase in reshored work over the next 12 months, with 57% expecting a steady level of reshoring and 23% expecting less.
The Biden administration has spoken favorably of reshoring. Their encouraging words from the bully pulpit are helpful, but their regulatory onslaught is unhelpful. The new PM 2.5 standard from EPA clearly will have a chilling effect on reshoring, and there is a bevy of other regulations being developed and implemented this year at EPA, OSHA, and other agencies. A delegation of 75 AFS members hammered that message home in congressional visits at the Government Affairs Fly-In in June. (See our coverage on page 20.)
AFS has long been a member of The Reshoring Initiative. The group provides an online calculator that can quantify the financial impact of reshoring. Harry Moser, who leads the Initiative, has spoken at AFS events and regularly pens a column in Casting Source, AFS’s popular magazine for buyers, designers, and specifiers of castings.
According to Moser, “I can’t stress enough the link between reshoring and sustainability. Reshoring helps organizations effectively manage environmental and social impacts. Reshoring fosters social responsibility through the creation of local jobs, reducing unemployment rates and positively impacting the U.S. economy. Reshoring reduces waste from the carrying costs of large inventories, quality/rework issues, time delays from far-flung, complex supply chains, disposal of obsolete inventory and the excessive waste from the packaging necessary for long-distance transport. The negative environmental impact of offshoring packs a punch with significantly higher carbon emissions and pollution from factory production in less-regulated, developing countries, more coal intensive electricity usage and long-distance maritime transport. If shipping were considered a country, it would rank among the largest global polluters.”
AFS encourages Modern Casting readers to take a fresh look at reshoring with customers and potential new customers. Access the resources at ReshoreNow.org. If you are a member of AFS and have additional questions, contact the Reshoring Initiative at info@reshorenow.org or call 847-867-1144 and let them know you are a member of AFS. Harry Moser and his team will be happy to assist.