Why Companies Should Onshore in Redwood County

Monday, August 24, 2020

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Onshoring is on the mind for business executives who have watched their supply chains be disrupted and product deliveries delayed to COVID-19. For four decades companies have offshored manufacturing operations overseas in order to save costs. COVID-19 has forced companies to ask, “At what cost?” If the cost is an inability to supply customers and fulfil contracts it may not be worth it. With 60% of U.S. manufacturing companies surveyed by Thomas reporting COVID-19 business disruptions 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 that scenario, Redwood County certainly has a lot to offer. Redwood County has the capacity to support large and small scale manufacturing operations, and the county also offers an excellent quality of life to those moving here. 

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. Redwood County is uniquely positioned to support that growth and to be a home to growing companies, or those onshoring for the first time. 

Why Companies Should Onshore in Redwood County

#1 Available Commercial Sites

Commercial properties in Redwood County like this one, listed by member business Kerkhoff Auction and Real Estate, are affordable and accessible. Redwood County has turnkey properties available for purchase as well as commercial land can be purchased, offering a clean slate for onshoring operations.  

#2 Location

Redwood County is located in the heart of the Minnesota River Valley. It is halfway between Minneapolis/St. Paul and Sioux Falls, making accessibility to both areas simple. The location is ideal for manufacturing operations as noted by the 38+ manufacturing plants already located here.   

#3 Transportation Assets

Redwood County offers excellent transportation infrastructure routes like US Hwy 71/19 and State Hwy 19/67. The Minnesota Valley Regional Rail Authority also runs through Redwood County and provides shipping service. 

#4 Workforce

Agriculture and manufacturing are two of Redwood County’s strongest business sectors. Redwood County has a ready and able workforce and outstanding workforce training programs.   

Reasons to Onshore Now

COVID-19 has demonstrated the scope and scale of the impact a global pandemic can make, but it’s not the only disaster that can disrupt supply chains. Environmental factors are another one. The world has suffered an increase in severe hurricanes, earthquakes, fires, etc. - 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 not secure enough to withstand them. For example, the 2001 earthquake and tsunami in Japan and floods in Thailand had crippling effects on the electronics and automotive manufacturing sectors. Put simply - the global supply chain is fragile. Businesses who want to protect themselves must onshore at least part of their operations to protect their interests.

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 us to learn more.

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