Contract packagers in the USA are seeing reshoring opportunities on the rise due to a number of factors:
- Economic Factors: Labor and transportation costs are increasing in foreign countries, making it more expensive to outsource packaging services overseas. This is making domestic contract packaging more competitive in terms of pricing.
- Quality Control: Domestic contract packagers can provide better quality control compared to overseas packaging facilities. This is particularly important for industries that require strict quality standards, such as pharmaceuticals and medical devices.
- Sustainability: Consumers are increasingly demanding sustainable packaging options, which can be more easily achieved through domestic contract packaging. Domestic packagers have more control over the sourcing of sustainable materials and can ensure that they meet local environmental standards.
- Supply Chain Disruptions: The COVID-19 pandemic has caused disruptions in global supply chains, making it more difficult to rely on overseas packaging facilities. Domestic contract packagers provide a more reliable option for packaging services.
- Customization: Domestic contract packagers are able to provide more customization options compared to overseas facilities. This is important for industries that require unique packaging solutions, such as cosmetics and food products.
Overall, the rise in reshoring opportunities for contract packagers in the USA is driven by economic, quality control, sustainability, supply chain disruption, and customization factors. As consumers demand more sustainable and customized packaging solutions, domestic contract packagers are becoming increasingly competitive in the marketplace.
