Why the Momentum West Region Stands to Benefit from the Onshoring Trend

Why the Momentum West Region Stands to Benefit from the Onshoring Trend Main Photo

8 Sep 2020

The Momentum West region offers strategic advantages for onshoring companies. Our advantages include a midwest location near the Twin Cities, affordable property, broadband access, educational network and strong infrastructure of rail, road and airport access. The Momentum West Region can support growth from onshoring manufacturing companies and is ready to respond to this trend by helping companies find site locations, incentives and the workforce they need to get up and running quickly. 

West Wisconsin is the right place to onshore in the United States

Momentum West and our regional partners have spent years preparing product, infrastructure, and support programs to ensure that companies can easily locate in the region. This groundwork has included developing virtual spec buildings, establishing business parks, setting up workforce training programs, expanding broadband access, strengthening educational partnership, and establishing incentives that make it financially attractive to locate here. We have already done the work and are ready to help site selectors and executives immediately. 

Why companies are looking to onshore

Onshoring is top of mind for business executives who have watched their supply chains be disrupted and product deliveries delayed to COVID-19. 60% of U.S. manufacturing companies surveyed by Thomas reported COVID-19 business disruptions, so this is a widespread issue impacting virtually all industries. 

Onshoring is the logical solution to reducing the risk of future disruptions and delays, at least in part. Though companies may not be looking to move their entire operations back to the United States, opening U.S. manufacturing facilities as part of their global operations certainly is. In addition to companies onshoring directly, 28% of suppliers surveyed reported that they are seeking domestic sources. This will create expansion opportunities for current U.S. manufacturers. 

Political pressure is also being placed on companies. With executive orders issued in August that require the procurement of PPE, medical supplies and drugs from U.S. manufacturers, there is an additional and immediate need to bring more manufacturing back home. The executive order states the following:

“It is critical that we reduce our dependence on foreign manufacturers for Essential Medicines, Medical Countermeasures, and Critical Inputs to ensure sufficient and reliable long-term domestic production of these products, to minimize potential shortages, and to mobilize our Nation’s Public Health Industrial Base to respond to these threats.  It is therefore the policy of the United States to:

(a)  accelerate the development of cost-effective and efficient domestic production of Essential Medicines and Medical Countermeasures and have adequate redundancy built into the domestic supply chain for Essential Medicines, Medical Countermeasures, and Critical Inputs;

(b)  ensure long-term demand for Essential Medicines, Medical Countermeasures, and Critical Inputs that are produced in the United States;

(c)  create, maintain, and maximize domestic production capabilities for Critical Inputs, Finished Drug Products, and Finished Devices that are essential to protect public safety and human health and to provide for the national defense ...

As a result, agencies must start looking at ways to procure these items within the U.S. starting 90 days from the date the order was issued. Medical supply companies within the U.S. stand to benefit and it is likely that some companies will move operations into the country in order to remain a viable option. West Wisconsin is uniquely positioned to support that growth and to be a home to growing companies, or those onshoring for the first time. 

We Can Help

The process of finding a site, obtaining permits, constructing a facility, hiring and training a workforce may seem daunting. We understand and we are here to help. If onshoring is part of your business protection strategy, we can provide assistance throughout the entire process. Contact Steve Jahn, by emailing steve@momentumwest.org or calling 715-874-4673.


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