Companies Eying Texas For Manufacturing Locations Amid Supply Chain Woes

Supply chain problems to and from China are prompting many companies to shift their efforts on manufacturing here in the United States.

Delays, surging freight rates, and backlogs at overwhelmed ports are all reasons why many companies now say having their production closer to their customers is key. James Crean, an Austin-based supply chain expert and president of Crean Inc., says Texas' business-friendly policies (like lower tax rates and less stringent labor laws) are why companies are looking to our state specifically to build or revive production facilities.

“That’s allowing people to start businesses here and compete globally without having to worry about low labor costs in other parts of the world,” Crean said.

Tesla is reportedly filling out the paperwork needed to build a Gigafactory in Texas. In November, Samsung said it would build a 17-billion-dollar semiconductor plant in the Lone Star State. It's the South Korean company's largest U.S. investment to date.

“We’re seeing a lot of interest and activity in getting manufacturing of all various different types across all industries moved back here to the U.S. So, it’s a good sign,” Crean explained.

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