Why Companies Should Consider Onshoring in Gallup, NM

Wednesday, September 02, 2020

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Gallup, New Mexico is ideal for manufacturing companies looking to onshore in the United States. This centrally located community is part of a manufacturing community that the CEO of Rhino Health, Mark Lee and partner Holland Sullivan called a ‘transportal’. Over 15,000 trucks pass through the area each day, in addition to the area’s significant rail activity. “It’s the beating heart of America’s logistics system,” said Sullivan. He cited one of the benefits of locating in Gallup as being able to be near major cities in California, yet without the traffic, congestion and delays. 

As a manufacturer of gloves for the healthcare industry, Rhino Health's decision to locate in Gallup is a recent one and likely part of the growing movement to bring manufacturing back to the United States. 

Site selectors attest that onshoring is top of mind for business executives who have watched their supply chains be disrupted and product deliveries delayed to COVID-19. “The previous focus on the lowest cost scenario, which led to growth in China and Southeast Asia, will now become more balanced as companies look to reduce risk,” said the Site Selectors Guild.

For four decades companies have offshored manufacturing operations overseas in order to save costs. COVID-19 has forced companies to ask, “At what cost?” If the cost is an inability to supply customers and fulfil contracts it may not be worth it. With 60% of U.S. manufacturing companies surveyed by Thomas reporting COVID-19 business disruptions this is a widespread issue impacting virtually all industries. 

Onshoring is the logical solution to reducing the risk of future disruptions and delays, at least in part. Though companies may not be looking to move their entire operations back to the United States, opening U.S. manufacturing facilities as part of their global operations certainly is. In that scenario, Gallup and McKinley County certainly have a lot to offer.

Why Companies Should Onshore in Gallup, New Mexico

#1 Available Commercial Sites

Gallup and McKinley County have shovel ready sites and existing buildings ready for occupancy. Properties cost less here than in other western states, providing a clear cost savings for companies wanting to serve major west coast metros without the high cost of locating there. 

Rail served properties are also available for those in need of immediate rail access. For everyone else, the robust highway system makes accessing U.S., Canadian and Mexican markets easy. Click here to view available sites. 

#2 Location

Gallup, New Mexico is in the southwestern United States, near Albuquerque, Phoenix, Los Angeles, Las Vegas, Salt Lake City, Denver, Oklahoma City and Dallas. It is easy to reach these markets using the highway system or rail transportation. Gallup also has a municipal airport. 

#3 Workforce

McKinley County’s strong workforce has exceeded 25,000 people, many of which have a strong industrial manufacturing, construction and agricultural background. In addition, there are four colleges/universities here. These are fantastic recruitment centers for businesses looking to grow in the area. 

Reasons to Onshore Now

COVID-19 has demonstrated the scope and scale of the impact a global pandemic can make, but it’s not the only disaster that can disrupt supply chains. Environmental factors are another one. The world has suffered an increase in severe hurricanes, earthquakes, fires, etc. - all things that are unpredictable and cannot be controlled. Unfortunately, many of the same countries where U.S. companies have manufacturing operations have been hardest hit by these disasters and their infrastructure is not secure enough to withstand them. For example, the 2001 earthquake and tsunami in Japan and floods in Thailand had crippling effects on the electronics and automotive manufacturing sectors. Put simply - the global supply chain is fragile. Businesses who want to protect themselves must onshore at least part of their operations to protect their interests.

We Can Help

The process of finding a site, obtaining permits, constructing a facility, hiring and training a workforce may seem daunting. We understand and we are here to help. If onshoring is part of your business protection strategy, we can provide assistance throughout the entire process. Contact us to learn more.

 

Resources and Further Reading 

https://www.thomasnet.com/insights/60-of-u-s-manufacturers-say-business-has-been-impacted-by-coronavirus/ 

https://knowledge-leader.colliers.com/bret_swango/covid-19-the-great-accelerator-of-onshoring-part-1/ 

https://siteselectorsguild.com/news/covid-19-impact-on-site-selection/

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