{"id":149,"date":"2011-03-01T16:39:30","date_gmt":"2011-03-02T00:39:30","guid":{"rendered":"http:\/\/savingusmanufacturing.com\/blog\/?p=149"},"modified":"2011-03-01T16:39:47","modified_gmt":"2011-03-02T00:39:47","slug":"bringing-back-jobs-from-offshore-to-revive-american-manufacturing","status":"publish","type":"post","link":"https:\/\/savingusmanufacturing.com\/blog\/reshoring\/bringing-back-jobs-from-offshore-to-revive-american-manufacturing\/","title":{"rendered":"Bringing Back Jobs from Offshore to Revive American Manufacturing"},"content":{"rendered":"

There have been many recommendations of how to revive American manufacturing and create the jobs Americans need, but most job creation programs proposed by commentators, politicians and economists involve either increased government spending or reductions in employment or income taxes at a time of soaring budget deficits and decreased government revenue.\u00a0 Other recommendations would require legislation to change policies on taxation, regulation, or trade that would be difficult to accomplish.\u00a0 Many of these solutions involve borrowing money now, largely from China, or taking money from one group of citizens or a future generation to give to another.\u00a0 Other programs call for Chinese currency revaluation or tariffs, which would help the manufacturing industry, but would increase consumer prices.<\/p>\n

In contrast, the move to bring back manufacturing production to the United States, called Reshoring, has grown increasingly popular over the last few years.\u00a0 Reshoring brings jobs directly back from offshore, often from the LLCCs (Low Labor Cost Countries) that have grown so rapidly over the last decades at the expense of American workers, American manufacturing companies, and the overall U.S. economy.\u00a0 Higher transportation and fuel costs, escalating wage rates in developing countries like China, and serious, sometimes life threatening, quality problems with products made in China are providing added impetus to this trend.<\/p>\n

Reshoring breaks out of the waiting-for-policy-decisions problem, the economic zero-sum-game and the increases in consumer prices and assures that the pie grows to the advantage of all Americans.\u00a0 Reshoring also focuses on the manufacturing sector that has suffered so many job losses for decades and the Small-to-Medium Enterprises (SMEs) that offer the best potential for job growth.<\/p>\n

To help accelerate this trend, there is a new initiative with a plan to efficiently reduce our imports, increase our “net exports” and regain manufacturing jobs in a non-protectionist manner.\u00a0 The Reshoring Initiative was founded by Harry Moser, retired president of Agie Chamille LLC, a leading machine tool supplier in Lincolnshire, Illinois.\u00a0 The Initiative shows how outsourcing within the United States can reduce a company’s Total Cost of Ownership (TCO) of purchased parts and tooling and offer a host of other benefits while bringing U.S. manufacturing jobs home.<\/p>\n

The Initiative documents the benefits of sourcing in the United States for large manufacturers and helps suppliers convince their U.S. customers to source local.\u00a0 Archstone Consulting\u2019s 2009 survey showed that 60% of manufacturers use \u201crudimentary total cost models\u201d and ignore 20% of the cost of offshoring.\u00a0\u00a0 If a manufacturer is not accounting for 20% of their costs to offshore, offshoring may not be the most economical decision.\u00a0 In tough economic times and stiff global competition, no company can afford this.\u00a0 To help companies make better sourcing decisions the Reshoring Initiative<\/a> provides:<\/p>\n