As manufacturing makes a comeback in Nevada and U.S., so does a need for domestic financing options. According to Industry Week, between 2010 and 2015 more than 200 companies, most of them based in the U.S., brought their production back to America in a practice known as onshoring. Economic factors are driving foreign manufacturers' interest in setting up shop in the U.S. as well.
As more companies move production to U.S. soil, they will likely be in search of domestic financing options.
What is bringing manufacturing back to the U.S.?
Forbes contributor Ellen Sheng discussed a report from The Global Supply Chain Benchmark Consortium, which found companies from both Asia and Europe are beginning to move production to the U.S. so they can better position themselves in the market and also reap the benefits of U.S. technological developments.
Additionally, the U.S. is becoming more appealing for cost reasons. Labor costs in China are increasing, and U.S. production is becoming more efficient as technology improves. Those two things, combined with the low domestic prices of oil and gas, make the U.S. a sound, cost-effective option for manufacturing companies. Sheng discussed another study which found that industrial plants in China pay as much as 50% more for electricity than those in the U.S.
Additionally, in regards to manufacturing output per employee, the U.S. is 80-90% more productive.
What are these U.S.-based manufacturers looking for?
As more manufacturers become local, they could be looking for domestic financing options. Industry Week emphasized the need for these manufacturers to partner with financing providers that are not only experienced in financing equipment, but also have specific experience in financing manufacturers. Banks with manufacturing expertise likely can deliver value-added insights along with attractive terms.
In addition, the publication suggested manufacturers find partners that provide flexible finance structures. Manufacturers know flexibility is vital due to the rapid development of new technologies that may cause processes and strategies to shift, alongside changing customer needs.
Tap a financing resource with manufacturing expertise
First Independent Bank's manufacturing and distribution lending experts have a deep understanding of the challenges and opportunities manufacturing companies face every day. Given the unique banking needs of this industry, clients often require customized financing options. Look for bankers with the ability to tailor solutions that help manufacturing firms optimize liquidity, monitor and manage cash flow, finance upgrades and facilitate expansion.
First Independent Bank takes a customer-focused approach to lending, and every client works with a dedicated relationship manager who acts as a single point of contact to bring clients a wealth of knowledge to benefit their business. Contact us to learn more about First Independent Bank’s manufacturing resources.