Reshoring and additive manufacturing

Abstract

Since the mid-20th century, offshoring of manufacturing facilities has gained significant popularity because of the opportunity for cost reduction. However, there is evidence that shows that offshoring strategies may not be beneficial for the organisation's manufacturing activities and may increase the cost of ownership. There appears to be a tendency to reverse offshoring and begin reshoring manufacturing back to the country of origin. This paper focuses on the applicability of additive manufacturing (AM) as a supporting technology for increased reshoring to the UK. This manuscript focuses on theory elaboration, bridging the new generation technologies to the reshoring movement in the UK. This research identifies six potential areas where AM can have impacts on supply chain of reshoring companies to make them more responsive: shorter lead-time, responsiveness to the product and market changes, lower transportation costs, fewer miscommunications with the suppliers, more customisation options, fewer products stored in inventory.