Technology Advancements on Reshoring
Clipboards and Whiteboards: The Evolution of Technology in Manufacturing
Well into the 1970s, American manufacturing was generally fat, dumb, and happy. The post-World War 2 industrial landscape in Europe and Asia was still in a rebuilding mode, although early success stories like Germany and Japan were beginning to emerge as manufacturing powerhouses. During that time, without the effect of direct competition, American manufacturing became more and more driven by layers of supervision and was run mainly through the use of manual documentation (clipboards) and early crude means of communication of requirements (white boards).
Don’t believe me? Here I am in 1994, running a tannery in Omaha, Nebraska, while a consultant for Arthur Andersen, driving massive productivity gains using a clipboard and whiteboard. Lotus 1-2-3 was just getting off the ground, there was no ERP (Enterprise Requirements Planning), MES (Manufacturing Execution Systems), Supply Chain Planning software to speak of. Everything was done with paper and a phone.
Figure 1: The Early Days - No Technology Needed
30 Years of Progress
We are a few months from 2025, so I will trace the evolution of manufacturing technology back 40 years, from 1985 to 2025. Any manufacturing technologist that reads this article could add additional points on the evolutionary axis, but this is intended to be indicative only.
Figure 2: The Advancement of Technology
Forty years of technology advancements include:
Paper (1985): Initially, all manufacturing processes were documented on paper, offering limited efficiency and prone to human error due to the labor-intensive nature of record-keeping.
Spreadsheet (1990): The introduction of spreadsheets automated calculations and data organization, providing greater accuracy and ease in managing financial, inventory, and production data. Compared to today’s tech, Lotus 123 was a dinosaur.
Niche Applications for Manufacturing and Supply Chain (1995): Specialized software addressed specific manufacturing and supply chain needs, allowing more precise control and optimization of individual processes, integration and data flow were a challenge.
ERP - Enterprise Requirements Planning (2000): ERP integrated business functions, improved synergies and management across the enterprise while streamlining operations from production to finance. SAP and Oracle emerged as the dominant players in this space.
Electronic Data Interchange (EDI) and Advanced Ship Notices (ASN) (2005): EDI and ASN facilitated standardized electronic communication between businesses, increasing transaction speed and accuracy in supply chain logistics.
Internet & Software as a Service (SaaS) (2010): The internet enabled remote access to business applications through SaaS, reducing IT costs while increasing flexibility. Add to that internet-enabled offerings, aka “Internet of Things,” and broad capabilities emerged.
Cloud (2015): Cloud computing allowed for storage and computing, accessible from anywhere, enhancing collaboration and reducing costs in manufacturing. Public cloud was (and is) a game-changer for the rapid introduction of new technology solutions.
Industry 4.0 (2020): This era introduces smart factories where connected systems autonomously exchange data. It incorporates IoT and cyber-physical systems, enhancing automation, efficiency, and real-time decision-making.
Artificial Intelligence (AI) and Machine Learning (ML) (2025): AI and ML revolutionized manufacturing by enabling intelligent machines to learn and adapt, pushing efficiencies through automation and innovation.
The evolution of technology can help make reshoring more successful by driving down costs and ensuring better collaboration between HermitCrab and our customers. Let’s see how new technology can be applied to a reshored facility.
Where Are We Now? Technologies That Support Reshoring
As started at the outset, the discussion of technology as an enabler of reshoring can be vast, and some limits are needed to prevent a runaway class discussion. In this case, the large general processes associated with manufacturing are presented in the figure below, and the top 3 enabling technologies are discussed within each process.
Figure 3: Essential Technology-Supported Functions
Inbound Logistics
The effective control over inbound logistics is essential to control costs and avoid waste. For inbound logistics, the arrival of new raw materials or maintenance inventory should occur as close to consumption as possible. Several technologies now exist that would have saved significant money in the past.
Raw Material Transparency: This process enhances the visibility of material origin, quality, and movement within the supply chain. By using blockchain and IoT, manufacturers ensure compliance, reduce fraud, and promote sustainability. Transparent data sharing with partners supports ethical sourcing and strengthens trust across the supply chain network.
Reverse Auctions: Reverse auctions enable competitive bidding among suppliers, by driving prices down. This digital process fosters a transparent and fair environment, optimal supplier selection, and reduced costs. The increased competition and clarity improve procurement efficiency and can lead to more strategic supplier relationships over time.
Automated Kanban: Automated Kanban systems leverage IoT and AI to manage inventory levels efficiently. By triggering requests automatically, they enable swift and touchless replenishment. This minimizes downtime, reduces excess inventory, and maintains a smooth production flow, aligning supply closely with real-time production demand.
Factory Operations
The greatest and most effective advances in technology that support reshoring happen within the four walls of the factory. No more supervisors with clipboards – every worker has their own tablet and knows instantly the status of production. No more HR staff – every worker can manage their own HR needs. Less manual and redundant processes – automation and robotics are here!
Advanced MES: Enhanced Manufacturing Execution Systems (MES) optimize production by integrating real-time data from shop floor activities, improving efficiency, reducing waste, and enhancing decision-making through visibility and control over the manufacturing process, leading to increased productivity and decreased downtime.
Industry 4.0 Technologies: These technologies, including IoT, AI, and data analytics, create interconnected systems that enhance operational efficiency. By enabling predictive maintenance, adaptive manufacturing processes, and real-time data sharing, they foster flexibility, improve quality, and support agile responses to shifting market demands.
Automation and Robotics: Implementing automation and robotics reduces labor costs and mitigates workforce shortages. These technologies increase precision, consistency, and speed in manufacturing operations, allowing for 24/7 production and minimizing human error for more efficient and cost-effective factory operations.
Outbound Logistics
An effective HermitCrab facility will utilize the latest in Warehouse and Transportation management SaaS solutions to integrate with our customers ERP to drive Just-In-Time delivery to their warehouses or (best part) directly to stores – this cannot occur when the product is coming in on a 40-foot container, and represents a huge benefit to domestic production of consumer goods.
Advanced WMS and TMS for 24/7 Tracking of Goods: These systems integrate real-time data to enhance inventory accuracy and optimize routes, enabling seamless coordination and visibility throughout the supply chain. Continuous tracking improves service levels and minimizes delays, ensuring efficient delivery to the customer's warehouse.
Electronic Data Interchange (EDI) and Advance Ship Notices via IoT: EDI allows for the automated exchange of standardized data, reducing errors and streamlining communication. Combined with IoT, it provides advanced shipment notifications, offering precise tracking and status updates.
LTL Shipments Directly to Retailers: Less-than-truckload (LTL) shipments lower transportation costs by consolidating smaller loads for direct delivery to retailers versus centralized warehouse shipments, reducing inventory holding and enhancing flexibility, allowing reshored facilities to respond quickly to market demands.
Back Office Functions
The future of reshoring will not include full-time staff to manage back-office operations. Accounting, Human Resources, Engineering, and Information Technology will all be enabled by technology to enable fractional resources across each business function. Supervision can be done remotely via AI and Smart Factory technology. Analytics and data reside in the cloud.
Fractional Professional Services: Utilizing fractional experts in accounting, HR, R&D, and marketing allows reshored facilities to access specialized skills without the full-time cost. This flexibility aids in strategic planning, enhances operational efficiency, and ensures that expert guidance is available to navigate complex business challenges in a dynamic market.
Smart Factory Supervision using Advanced Monitoring: Advanced monitoring systems in smart factories enable real-time oversight of production processes, quickly identifying inefficiencies and optimizing resource use. This technology reduces downtime, enhances safety, and supports informed decision-making, leading to a more responsive and agile management function within the facility.
Real-Time Data and Analytics for Management Reporting: Leveraging real-time data and analytics provides management with insightful, up-to-date reports to guide strategic decisions. These tools improve operational transparency, foster proactive problem-solving, and support data-driven decision-making, enhancing the facility's ability to adapt and thrive in a competitive landscape.
Conclusion
Entire books can be written about the emerging technologies that can support manufacturing reshoring back to the US. In this case, all we could do was skim across the top of the surface of the water provide enough information to be useful, but not enough to be activated upon. Numerous consulting firms and technology providers exist to help companies identify the right tools and processes to eliminate the cost differences associated with reshoring. The latest technologies and business processes will be a major part of any HermitCrab reshoring project – we need to start on the right foot!
Thank you for Reading!
This class represents two passions: manufacturing and technology. I considered splitting today’s class into multiple topics but opted to stay with the “30 Days of HermitCrab” syllabus. Come back tomorrow for Day 12: Regulatory Pros & Cons: Understanding supportive policies and incentives.
Thanks for reading,
The HermitCrab Team
