Issue link: https://nebusinessmedia.uberflip.com/i/1518792
HARTFORDBUSINESS.COM | APRIL 15, 2024 15 At NBT Bank, our goal is to help you reach yours. Our relationship managers provide the expert guidance and custom solutions it takes to help grow your business. Our local commitment builds strong, long-lasting partnerships that maximize your potential for success. Fraud Protection & Secure Banking Solutions Local Perspective & Decision Making Capital and Treasury Management Solutions Let our experienced Connecticut commercial banking team create real opportunity for your business. Dante Fazzina, Maureen Kennedy, Steven Brandfield, Deb Oakliff, Steven Angeletti, Andreas Kapetanopoulos, Kate VanValkenburg, Heather Piteo, Dale Stewart, Steven Essex Member FDIC nbtbank.com/ct and distribution channels in the state are starting to use those facilities for actual production, Lavoie said. One of the reasons is because China became a less reliable trade partner during the pandemic, Lavoie said. "Shipping times were extended and people couldn't get parts," Lavoie said. "I had one manufacturer telling me that they didn't know how long the lead time was going to be because their system only went up to 99 weeks. And they knew the lead time was longer than that." Lavoie said Grand Brass Lamp Parts in West Haven recently began manufacturing parts that it previously distributed, "because the lead times were much quicker." The business was a distributor, relying on nearly all of its parts to be manufactured in China. Now, it manufactures about 40% of its parts in West Haven. Public policy is also a factor in companies' decisions to reduce their reliance on overseas production. While labor costs may be higher in the U.S., tariffs, sanctions and shipping fees can offset or exceed the savings from outsourcing, experts said. "There have been a variety of economic protectionist laws, tariffs, and various other things, that have been implemented to encourage U.S. manufacturing," White said. The CHIPS and Science Act of 2022 provides more than $50 billion in subsidies for U.S. semiconductor production and research. Also, tariffs against China make it difficult to import components for solar panels. The current and previous presiden- tial administrations have been clear about their goals to promote U.S. manufacturing, White said. Companies that expand their production capacity in the U.S. are also developing redundancy, improving their ability to recover from natural disasters and scale up or down, based on demand, White said. "If you have a problem in your one manufacturing facility, in terms of talent or supply chain issues, or whatever else, you're putting all your eggs in one basket," White said. White also said some manufac- turers have found creative solutions that both reduce costs and generate revenue — "like playing offense and defense at the same time." A company that moves a piece of its supply chain in-house, like ebm-papst, could generate a new revenue stream by selling its tools. "Once you build that capacity, you can then sell it," White said. Ebm-papst employee Mike Warner works in the company's Farmington production facility. The company is building a new tooling center that will allow it to create its own tools for the production of fans and motors.