Renewed Importance for Reshoring American Manufacturing
Why Now is the Time to Move Forward with Your Manufacturing Projects
As we close out 2024 and look ahead to a new presidential administration in 2025, manufacturers face an era of uncertainty. For companies navigating the injection molding process, this moment presents a critical opportunity to take action.
Whether you’re considering launching a new project or moving your tooling to the United States, now is the time to make decisions before new policies (potentially affecting your bottom line) take effect. Here’s what you need to know about reshoring to stay ahead.
Why Reshoring Manufacturing May Be Wise for 2025
Over the past few years, the manufacturing industry has experienced relative stability, particularly regarding tariffs and freight rates. However, with a new administration, it’s reasonable to anticipate policy shifts.
During President Trump’s previous administration, tariffs on goods often changed rapidly – sometimes between when items shipped and when they arrived. This volatility made it challenging to predict costs and timelines. As we approach 2025, a similar climate of unpredictability could return, with changes potentially impacting tariffs, freight rates, and sourcing strategies.
If you’ve been waiting to proceed with a manufacturing project, the message is clear: Don’t wait. Get your project in now while conditions remain stable.
The Case for American Tooling
One significant advantage of moving your tooling and injection molding projects to the U.S. is the consistency and predictability of American manufacturing. While American tooling may not be cheaper than overseas options, it offers benefits that can outweigh the cost difference:
- Shorter Lead Times: Domestic tooling manufacturers typically offer faster production timelines than their overseas counterparts, reducing the time to get your project to market.
- Lower Freight Costs: Shipping costs for tooling made domestically are significantly lower, sometimes to the tune of a few hundred dollars instead of several thousand.
- Stable Freight Rates: American-made tooling eliminates the volatility of international freight rates impacted by tariffs and fluctuating global shipping costs.
- Predictability: With domestic tooling, you avoid the uncertainty of changing international policies, allowing for more accurate project planning.
By choosing American tooling, you gain consistency and peace of mind, making your manufacturing process more efficient and reliable.
The Tariff Factor: Why Acting Now Matters
Currently, the tariff rate for goods imported from China sits at 25.4%. While that rate is already significant, there’s a strong likelihood that tariffs could increase under new policies. Even if the rates rise, the gap between U.S. and overseas tooling costs won’t narrow; it will simply raise the baseline for international manufacturing expenses.
By acting now, you can lock in quotes and secure your project timeline before potential policy changes disrupt the industry.
Mark Your Parts “Made in the USA”
Another consideration is that while tooling imported from overseas is subject to tariffs, plastic parts manufactured in the U.S. are not. By relocating your tooling to the U.S., you can produce parts domestically and label them “Made in the USA,” giving you a competitive edge with customers who prioritize buying American-made products.
At Integrated Molding Solutions, we can help you design a mold that incorporates “Made in USA” directly onto the surface of the part, or we can apply the label after molding through painting or pad printing.
Relocating Your Tooling: Integrated Molding Solutions Can Help
If you’re considering moving your tooling from overseas, IMS is here to guide you through the process. Relocating tools can feel overwhelming, but it’s an investment in long-term stability. We work closely with our clients to ensure a seamless transition, including:
- Evaluating Your Current Tooling: We’ll help you assess the condition of your existing tools and determine the best path forward.
- Partnering with U.S. Toolmakers: Whenever possible, we collaborate with American toolmakers to create high-quality, reliable molds.
- Streamlining the Move: From logistics to set up, we offer expert guidance to minimize downtime and ensure your tools are production-ready in the U.S.
Our goal is to make the process as smooth as possible, so you can start producing high-quality plastic parts without delays or complications.
The IMS Advantage
At Integrated Molding Solutions, we prioritize consistency, quality, and customer support. Whether you’re launching a new project or navigating the complexities of relocating tooling, we’re here to help you succeed. Our partnerships with American toolmakers and our expertise in plastic injection molding allow us to deliver reliable, predictable results, even in times of uncertainty.
As 2025 approaches, don’t let uncertainty hold you back. Take advantage of the current stability to move your projects forward with confidence. Contact IMS today to learn more about our American-made injection molding services and how we can help you prepare for the future.