Why Manufacturing Businesses Should Stick to Suppliers Based in the Americas

Protected Supply Chains

In the tide of globalization, many companies prefer suppliers from around the world, but doing so has significant risks. One of the biggest risks is disruption and uncertainty in the international foreign policy landscape. Buying in the Americas means simplifying the supply chain and preventing risks associated with international trade, while nearshoring critical components for final US assembly is also a good option.

Avoid Import Tariffs

Depending on the country you import parts and supplies from, you may have an import tax rate on your components, increasing spending in line with that rate. Many countries have a duty-free agreement with the USA, but certain objects and countries pay significant taxes. In the case of the USA's Free Trade Agreement with Colombia, eliminating import taxes is a clear benefit.

Design Standards

Having the same design standards across your parts and components is essential. NIST works in the manufacturing industry to ensure high quality design and standardization across US manufacturing. Using ISO and IATF-certified items means you have supplies that fit one another in all cases, freeing up employee time and increasing productivity within an organization.

Reducing Lead Times

Functioning within a single country has clear benefits for every stage of the supply chain. You communicate with other parties far more quickly and reduce the bullwhip effect. Sourcing components in Canada, Mexico, and Colombia is also good for reducing lead times; these countries have no import tariffs, high-quality standards, and are sometimes closer to certain US regions.