Client Context
Amid escalating tariffs, unstable trade policy, and rising global freight costs, our client sought to reexamine its North American sourcing footprint for institutional packaging materials. Long reliant on offshore suppliers, particularly in Asia, the client needed to determine whether reshoring production to the U.S. could offer a competitive and reliable alternative, especially for high-resin SKUs and spec-sensitive contracts.
Our Approach
We structured the engagement into three key workstreams:
Cost and Capacity Benchmarking: We analyzed the comparative cost structures of domestic and offshore suppliers, integrating trade data, HS code analysis, and interviews with procurement leaders, manufacturers, and intermediaries in the U.S., Canada, China, Vietnam, and Malaysia. Special focus was placed on resin-based input costs, tariff burdens, and logistics volatility.
Supplier and Buyer Voice Insights: We conducted primary interviews with industry players on both sides of the supply chain. These interviews shed light on the commercial behaviors reshaping sourcing decisions, including buyer hesitancy, supplier deprioritization of the U.S. market, and shifting attitudes toward lead time, compliance, and spec integrity.
Reshoring Feasibility Analysis: We assessed the operational and strategic viability of reshoring based on production footprint, distributor expectations, and institutional buyer preferences. Our analysis also mapped how public-sector and national account RFPs were evolving in favor of U.S.-based suppliers.
Impact
Our study provided a granular understanding of how market and policy pressures are accelerating reshoring dynamics in institutional packaging. Key findings included:
- Tariffs exceeding 170 percent on Chinese imports have largely neutralized their price advantage. Many suppliers are now running at less than 50 percent capacity for U.S.-bound institutional liners.
- Southeast Asian suppliers, while still active, are passing tariff risk entirely to buyers and increasingly deprioritizing the U.S. market. Malaysian firms are exiting the category, while Vietnamese producers face pending tariff hikes and order volatility.
- Domestic producers in the U.S. are approaching price parity for certain SKUs, particularly high-resin products. Interviewees cited cost gaps of just 10 to 20 percent pre-tariff, with some buyers shifting sourcing due to improved lead times and spec compliance.
- Canadian procurement trends are tilting toward domestic supply as a safeguard against trade risk, providing a regional mirror of U.S. reshoring momentum.
These insights enabled our client to pursue a dual-path strategy that reinforced its domestic manufacturing position while tactically using offshore imports for SKUs not cost-effective to reshore. The study also supported commercial messaging, allowing the client to position itself as a resilient, tariff-proof partner for government and institutional buyers. Ultimately, our work empowered the client to align its production strategy with long-term shifts in North American sourcing logic, unlocking competitive advantage through reshoring readiness.
