Background of the warehouse during the Pandemic
The COVID-19 pandemic demonstrated a serious need for PPE and medical equipment in the United States. Most crisis-related products, such as masks, gas masks, antibiotics and over-the-counter pain relievers, are made in factories and warehouses. America in China, which outsourcing low-wage labor.
Even before the pandemic, many products including children’s toys and Apple iPhones were sourced for China due to the drop in overall manufacturing costs. This means US companies, along with many other countries around the world, depends a lot on China to manufacture products including medical supplies, although the US and China are currently at a trade war because of tariffs.
Theoretically, if China retaliated against the US further by cutting or limiting the supply of goods exported to the US, the result could be very drastic.
Possible solution: Shifting the supply chain from China to the US
One possibility for the US to mitigate China’s power over the supply chain is to move back production and outsourced storage at Chinese factories back to the United States. By doing so, it will expand and maintain domestic production and employment capacity. In the United States, the loss of manufacturing jobs due to business in China has led to rising income inequality and hurt America’s middle class.
History has shown that over-focusing on outsourcing, with a primary priority on cost reduction creates tensions, as well as serious strategic and commercial risks. If the US brings in warehouse and manufacturing jobs domestically, that could lead to more jobs with higher wages as well as help the US fight the current coronavirus epidemic by creating PPE near its final destination. their.
It will also help the United States maintain a competitive edge on a global scale in industries such as artificial intelligence, semiconductors, and advanced technology in general. An example of a company that succeeds in shifting production from overseas to just US is the Excel Dryer. The company started to manufacture their dryers entirely in the US due to US tariffs overseas. This has significantly reduced their production costs while improving the quality of their products. Excel Dryer can also create additional jobs at their Tennessee production plant as there are more factories and warehouses in the US.
That proves though that can be difficult and more expensive in the short run, the entire production of a company is transferred to the United States, in the long run it will benefit not only the company but also the economy by ultimately reducing overall costs and creating more jobs. domestic.
Are you in need of a warehouse job?
The COVID-19 pandemic is increasing US demand for warehouses and production capabilities as more supply chains move to the United States.
As companies move production, it is creating more domestically produced jobs and warehouse locations and more and more demand for workers is needed to help meet these needs. HapiGig is an app-based company to help warehouse staff find jobs. If you have warehouse experience and are in need of a job or overtime, the app allows you to create a profile and the warehouse manager will be able to contact you for the schedule available. To learn more about how to use this app, visit the website and talk to one of their team members.