CONTRACT & TOLL MANUFACTURING manufacturing knowledge that companies may not have in-house . Their specialised experience helps prevent costly mistakes , such as executing a full suite of testing and further adjusting a process that may work at bench scale but would be unstable at larger commercial scales without costly modification .
Contract manufacturers who focus on R & D are valuable partners that can perform economic market viability research , optimise processes and material sourcing , and ensure that processes and facilities comply with relevant regulations and safety standards . As manufacturing in the US picks up speed , contract manufacturers will help companies respond to market trends and effectively meet customer demands .
US manufacturing trends
Multiple factors are contributing to the recent surge in reshoring efforts . Rising labour costs in China are driving international companies to reconsider the cost-effectiveness and total cost of ownership of overseas production . 2
The European energy crisis , brought about by the disruptions to Russia ’ s natural gas exports , has led to increasing electricity and natural gas prices , as well as regulatory interventions , such as gas consumption reduction targets , driving additional petrochemical refining to the US . 3 Rising geopolitical tensions across both Asia and Europe increase the risk of global supply chain disruptions , leading more companies to look for domestic suppliers and driving foreign direct investment ( FDI ) in US facilities .
Tax incentives and government subsidies have also contributed to increased investment in manufacturing operations . The Inflation Reduction Act ( IRA ) of 2022 offered credits and incentives for manufacturing and renewable energy technology .
The CHIPS and Science Act , also signed into law in 2022 , supports semiconductor manufacturing , offering tax credits , grants and loans for semiconductor research and workforce development . To date , it has invested in 16 new semiconductor manufacturing facilities . 4
In order to support manufacturing capacity for in-demand products like semiconductors , pharmaceuticals , and batteries , the production of
JAN / FEB 2025 SPECCHEMONLINE . COM
21