OEMs Mitigate Risk by Onshoring Custom Plastic Injection Molding

Manufacturers who rely on injection molded plastic components can’t afford having their production lines go down because a partner fails to deliver on time. That’s why the most successful supplier selection teams regularly evaluate all risks in their supply chain and weigh them against the benefits their suppliers provide.

In the past, offshoring injection molding for custom plastic products was often worth the risk because of cost savings. Now, that cost-benefit calculus is changing for many manufacturers. New tariffs are likely to reduce the cost benefits OEMs have come to expect from overseas suppliers. Meanwhile, the inherent risks of offshoring are still fairly fresh in the minds of purchasing professionals who endured the pandemic and the supply chain crises that followed.

Common Risks of Offshoring Injection Molding

Supply Chain Disruptions

Overseas manufacturing can present any number of unexpected supply chain disruptions such as shipping delays, geopolitical tensions, and port congestion. Manufacturers can find themselves grappling with extended lead times and unpredictable delivery schedules, hindering their ability to meet market demand efficiently. Offshoring means giving up some control over logistical processes that can cause bottlenecks, which not only delay production but also elevate costs.

Quality and Compliance Challenges

Ensuring that offshored plastic injection molding meets quality and compliance standards poses considerable challenges for OEMs. Among other limitations, it’s self-evident that manufacturing anything thousands of miles away makes oversight much more complicated. This can often result in higher scrap rates, lower acceptance rates and in some cases, the use of non-compliant materials. Manufacturers who offshore are more likely to experience difficulties verifying material specifications and certification reliability, which tends to create costly inefficiencies. In worst-case scenarios, adhering to U.S. industry standards could be compromised, increasing the risk of recalls and other compliance challenges.

Intellectual Property Concerns

Intellectual property (IP) security remains a critical concern when production is offshored. OEMs who send work outside the U.S. increase their risk of design replication, counterfeiting, and ultimately the loss of competitive advantages. Even when legal agreements are in place, they are notoriously challenging to enforce in foreign jurisdictions, making IP protection problematic and costly at best. At worst, disputes over IP can lead to production delays, as manufacturers can end up entangled in lengthy legal processes with their tooling held hostage.

Advantages of Partnering with Domestic Suppliers

Offshoring custom injection molding and other upstream processes can be risky for OEMs. In contrast, partnering with domestic suppliers for these services can offer distinct advantages leading to improved productivity, quality, and economic benefits. Below, we discuss the primary benefits of choosing domestic partners for plastic injection molding, specifically.

Shorter Lead Times and Flexibility

One of the most significant advantages of aligning with a domestic injection molding partner is reduction of lead times. By doing business in the U.S., you eliminate the prolonged shipping durations inherent to international logistics. This is particularly important in industries where time-to-market is critical. Local partnerships enable more responsive production schedules, which are especially handy when you need to rapidly accommodate design changes or meet unforeseen consumer demands.

Proximity to your supplier also helps facilitate greater production flexibility. For example, a domestic manufacturer can quickly pivot to adapt to urgent market demands without the delays of overseas communications or shipping. In rapidly evolving sectors like consumer electronics and medical devices, being able to adjust production on the fly is imperative. Suppliers like New Berlin Plastics can offer customized, just-in-time production schedules, ensuring that your operations remain agile and customer-focused.

Improved Quality Assurance

Domestic injection molding companies often adhere to stringent U.S. regulatory standards, ensuring high levels of quality assurance. Local partners with ISO certifications, like the ISO 13485:2016 and ISO 9001:2015 certifications New Berlin Plastics holds, can offer consistent, high-performance production, reducing the risk of defects and ensuring compliance with industry standards. This level of quality assurance is often challenging to achieve with overseas suppliers, where oversight can be limited, and quality discrepancies can arise due to cultural and regulatory differences.

Enhanced quality control is further supported by real-time communication capabilities, allowing for quicker resolution of issues. Our customers frequently tell us how much they appreciate our consistent and proactive communication about production timelines and product launch status updates. Our ability to maintain close oversight not only improves the quality of the final product, but also reduces waste and rework costs, directly supporting your bottom line.

Supporting Local Economies and Workforce

It doesn’t get mentioned enough, but choosing domestic suppliers for services like injection molding plays an essential role in supporting local economies and the U.S. workforce. Investing in American manufacturing creates and sustains jobs, contributing to economic stability and growth in local communities like ours in Wisconsin.

Commitment to domestic production strengthens regional industrial bases, enhances the development of skilled labor, and fosters sustainable economic benefits. This kind of focus on local production often aligns with OEMs’ corporate social responsibility goals. It emphasizes sustainability and community support, which resonates well with consumers, business partners, and prospective employees. That’s especially true for manufacturers with goals that prioritize ethical sourcing and sustainability.

Onshoring Benefits Amid April 2025 Tariffs

Recent news about offshoring production has focused on the shifting landscape of global manufacturing in light of new tariffs effective as of April 2025. Many manufacturers are finding onshoring offers benefits that protect their financial interests while enhancing their operational stability. This lowers perceived cost benefits for offshoring, making less risky domestic partnerships look more attractive in comparison.

Cost Stability and Tariff Avoidance

One of the primary motivations for onshoring is avoiding unpredictable costs associated with tariffs on imported goods. By shifting production to domestic facilities, OEMs can sidestep these additional charges, fostering a more stable cost structure.

Domestic production also reduces manufacturers’ exposure to other fluctuating international costs, like exchange rates and international shipping fees. Taking these unpredictable variables out of the equation is helpful because it allows businesses to allocate resources more effectively and maintain competitive pricing strategies.

Enhanced Supply Chain Reliability

Onshoring strengthens supply chain reliability by eliminating common overseas issues discussed above like geopolitical tensions, port congestion, and logistical bottlenecks. By manufacturing locally, businesses can secure more dependable delivery schedules and faster lead times. This reliability is crucial for maintaining continuous production flow and meeting market demands promptly.

Leveraging a domestic supply chain also mitigates the risk of disruptions caused by international trade policies or natural disasters that more frequently affect overseas operations. Local partners like New Berlin Plastics can provide more stable support, ensuring that production remains uninterrupted, and schedules are met. In over 50 years of business, we’ve never caused a customer to experience a line-down situation.

Increased Brand Value and Customer Trust

Onshoring production can enhance a brand’s value and help manufacturers build increased trust with their customers. Products labeled “Made in the USA” convey a commitment to high quality, sustainability, and ethical manufacturing practices. Whether you specialize in B2B or B2C markets, these attributes are increasingly valued by customers who seek assurance in the products they purchase.

By demonstrating a commitment to local manufacturing, OEMs not only enhance their brand value, but also their corporate image. Capitalizing on consumer preferences for domestic goods builds customer loyalty and helps justify premium pricing.

Ultimately, onshoring plastic injection molding represents a strategic move that aligns manufacturing processes with the economic landscape, all while enhancing operational standards and brand reputation. It’s why more OEMs than ever are finding it to be a clear win-win situation.

New Berlin Plastics: Select the Best

For manufacturers seeking a domestic partner for plastic injection molding, there are a lot of strong options. So how do you choose the best? New Berlin Plastics stands out because we are the lowest-risk, highest-value partner you can choose. Our approach combines the very best people, processes, and technology to deliver quality products on time 97.3% of the time. As for the other 2.7% of the time, our customers appreciate the transparency and accountability of our early-and-often communication. This year, we’re celebrating 50 years of partnerships, and in that time, we’ve never once caused a customer’s line to shut down.

If that’s the sort of reliability you need for your products, we hope you’ll reach out and start a conversation with our team. Whether you’re looking to onshore existing tooling or launch a new product, we make it easier and less risky than any other partner.