Common Challenges When Transitioning to U.S. Manufacturing for Packaging and POP Displays

As global markets continue to evolve, many businesses are reevaluating their supply chains and shifting their packaging and retail POP display manufacturing to the United States.

Rising tariffs on imported goods, ongoing geopolitical tensions, and the lingering effects of global disruptions like the COVID-19 pandemic have accelerated this trend.

Additionally, supply chain instability—from shipping delays to raw material shortages—has pushed companies to seek greater control, transparency, and proximity in their production processes.

For many brands, domestic manufacturing offers compelling advantages: reduced shipping times, improved quality control, increased agility in responding to market changes, and alignment with sustainability goals. It also supports local economies and enables better oversight of labor and environmental practices—factors increasingly important to today’s consumers.

However, the transition from offshore to onshore production is not without its complexities. Shifting operations requires more than just changing location; it demands a strategic realignment of sourcing, logistics, compliance, and workforce management. Without a clear roadmap, businesses can face delays, cost overruns, and operational inefficiencies that erode the benefits of going domestic.

To help companies make this transition smoothly, it's important to understand the most common challenges they may encounter—and how to proactively address them. The sections that follow outline key hurdles and offer guidance for navigating the shift to U.S. manufacturing successfully.

Transitioning to U.S.-based production offers businesses a range of strategic advantages—from faster turnaround times and enhanced quality control to greater supply chain stability and reduced risk of disruption. This shift is especially impactful in the packaging industry, where speed-to-market and consistency are critical. Domestic manufacturing also provides closer oversight, allowing brands to fine-tune processes and ensure higher standards across every stage of production.

Equally important, it aligns with evolving consumer expectations around transparency, ethical labor practices, and environmental responsibility. For brands seeking to strengthen their value proposition and future-proof their operations, U.S. production is a powerful, long-term investment.

Transitioning to U.S.-based production provides businesses with faster turnaround times, improved oversight, and stronger sustainability practices. Domestic production also helps companies build resilience in their supply chains and increase market responsiveness, particularly in the packaging industry.

Manufacturing within the U.S. also aligns with increasing consumer demand for transparency, ethical labor, and environmentally responsible sourcing. Brands looking to enhance their value proposition often find domestic production to be a compelling step toward long-term growth.

Companies can offset these costs by investing in automation, adopting lean manufacturing principles, and optimizing production workflows. While the initial costs may be higher, the benefits of reduced lead times and better quality control often result in long-term savings.

Sourcing materials for packaging within the U.S. can be difficult due to limited availability or higher prices for certain substrates and finishes. Some materials commonly used in international production may not be readily available domestically.

To mitigate these issues, companies can build strong relationships with regional suppliers and consider material substitutions that maintain design integrity without compromising quality. Planning material needs well in advance also reduces the risk of production delays.

U.S. manufacturers may use different production techniques and technologies than international suppliers. These differences can include equipment capabilities, production timelines, and workflow standards.

Businesses need to invest time in aligning expectations and requirements with their domestic partners. This collaboration helps avoid quality issues and ensures the finished packaging and displays meet brand standards.

Transitioning production domestically requires businesses to reevaluate warehousing, transportation, and distribution logistics. Although domestic shipping is generally faster, the restructuring of supply chains can temporarily increase complexity.

A phased rollout or pilot program can help identify bottlenecks and allow businesses to fine-tune operations before scaling. Collaboration with third-party logistics providers also helps ensure efficient and timely delivery.

Manufacturing in the U.S. requires strict compliance with federal and state regulations covering labor practices, environmental standards, and workplace safety. Companies must ensure that their facilities and partners are fully compliant to avoid legal risks and reputational damage.

Staying ahead of regulatory changes and conducting regular audits can safeguard your brand and reinforce consumer trust. Investing in sustainable practices and materials also enhances long-term viability.

Some businesses may find it challenging to match their previous production volumes when transitioning to a new manufacturer. Limited equipment, space, or workforce availability can create bottlenecks during the scaling phase.

Gradually increasing production output while investing in scalable systems can help maintain supply consistency. Early discussions with manufacturers about future growth plans ensure the infrastructure can support demand.

A skilled workforce is essential for maintaining production efficiency and product quality. Businesses may need to invest in employee training programs or partner with manufacturers who prioritize workforce development.

Cross-training employees and offering skill enhancement programs can also create a more agile production environment. Well-trained staff are better equipped to adapt to the specific requirements of custom packaging and display production.

Changes in pricing, materials, or production processes can affect customer perception and demand. It's essential for businesses to communicate transparently with clients about these shifts.

Highlighting the benefits of U.S.-based production—such as improved quality, quicker delivery, and more sustainable sourcing—can help manage expectations and strengthen customer loyalty.

Switching to U.S. manufacturing often involves significant upfront investment in equipment, facility upgrades, and restructuring of the supply chain. Businesses need to plan financially for these changes to ensure long-term profitability.

Exploring funding options such as state or federal grants, tax incentives, or partnerships can ease the financial burden. Viewing capital investment as a long-term growth opportunity can shift the mindset from expense to value.

Transitioning to U.S. manufacturing for custom packaging and POP displays can be complex—but with the right partner, it’s a smart, strategic move. Bennett helps brands navigate every challenge, from rising costs and material sourcing to scaling production and meeting compliance.

With decades of domestic expertise, we deliver high-quality, cost-effective solutions while ensuring a smooth, efficient transition. If you’d like to learn more about our custom packaging or POP display capabilities, reach out to our team—we’re here to support your next move. 

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