Now is The Time to Onshore in Elk River
21 Sep 2020
COVID-19 brought with it a myriad of problems for businesses nationwide. From supply chain disruptions to product delivery delays, these complications made a lasting impact. Bearing this in mind, many business executives have started to consider onshoring. Companies in the United States have offshored manufacturing operations overseas for four decades in order to save costs, but now many think it is time to bring operations closer to home. Elk River is an ideal location to affordably onshore all or some manufacturing operations.
Companies have been forced to ask, “At what cost?” due to COVID-19. For many, the cost has been an inability to effectively supply customers and fulfill contracts. In this scenario, onshoring is worthwhile. 60% of U.S. manufacturing companies surveyed by Thomas have reported COVID-19 business disruptions. This is a widespread issue impacting nearly all industries.
Moving some manufacturing processes state-side may reduce the risk of future disruptions. Though it may not be realistic for companies to move all of their operations back to the United States, opening U.S. manufacturing facilities as part of global operations is certainly possible. There are extensive benefits to onshoring, including reduced costs and the ability to better support the local economy. Consumers will also enjoy a reduced lead time.
In the United States, energy costs for manufacturers are currently low and the U.S. Energy Information Administration expects renewable energy to continue to be one of the fastest-growing sources of electricity generation. Real estate is affordable right now, and Americans are ready to bring more well-paying, stable manufacturing jobs back to the United States.
Suppliers are also on board. 28% of suppliers surveyed reported that they are seeking domestic sources. This will create expansion opportunities for current U.S. manufacturers.
Why Businesses Should Onshore in Elk River
#1 Available Commercial Sites
In spite of the pandemic, the national and statewide housing market is booming. Elk River has many available buildings currently listed, zoned commercial with warehouse and distribution buildings on site. Commercial land is also for sale and ready for development in the impressive industrial parks of Elk River. Known as “The Light Industrial Hub of the Northwest Metro,” Elk River is home to over 50 manufacturing facilities. Now is a wise time to buy and transition operations to the City of Elk River.
Minnesota has been ranked first in the job creation index, making it an excellent location to find the workforce needed for onshoring operations. More than half of Minnesota’s Fortune 500 companies are in the manufacturing business sector, and this sector is one of the primary supporters of the statewide economy. Elk River is a short drive from the metropolises of Minneapolis, St. Paul and St. Cloud. It is situated at the confluence of the Mississippi and Elk Rivers and located on US Highways 10, 169 and Minnesota 101.
#3 Transportation Assets
Elk River has waterways, airports and railway routes that enable businesses to thrive. In addition to its location on three major highways, there are three airports in the vicinity, one of which is the MSP International Airport. Freight rail transit via BNSF Railway and Canadian Pacific Railway is also available. Commuters have easy access to light rail transit and bus routes.
Reasons to Onshore Now
A global pandemic can make a detrimental and widespread impact on companies, but it’s not the only disaster that can disrupt supply chains. Environmental factors are another serious threat. In recent years, the world has suffered an increase in severe hurricanes, earthquakes and fires. These are all things that are unpredictable and cannot be controlled. Unfortunately, many of the same countries where U.S. companies have manufacturing operations have been hardest hit by these disasters and their infrastructure is no longer secure enough to withstand them. Put simply - the global supply chain can be fragile. Businesses who want to protect themselves should onshore their operations, in part or whole, to protect their interests.
We Can Help
Finding an affordable site, obtaining permits, constructing a facility, hiring and training a workforce may seem like a daunting task, but Elk River has the resources to help businesses make a smooth and successful transition. Our workforce training programs and resources provide comprehensive and tailored training opportunities. The incentives to opening operations in Elk River are extensive. If you want to make onshoring part of your business protection strategy, contact us to learn more.