{"id":311,"date":"2012-04-24T16:31:49","date_gmt":"2012-04-24T23:31:49","guid":{"rendered":"http:\/\/savingusmanufacturing.com\/blog\/?p=311"},"modified":"2012-04-24T16:36:33","modified_gmt":"2012-04-24T23:36:33","slug":"%e2%80%9creshoring%e2%80%9d-opportunities-abound-at-del-mar-electronics-design-show","status":"publish","type":"post","link":"https:\/\/savingusmanufacturing.com\/blog\/outsourcing\/%e2%80%9creshoring%e2%80%9d-opportunities-abound-at-del-mar-electronics-design-show\/","title":{"rendered":"\u201cReshoring\u201d Opportunities Abound at Del Mar Electronics &#038; Design Show"},"content":{"rendered":"<p>If your company is considering \u201dreshoring\u201d manufacturing of some parts, assemblies, or products to the U. S., then you should attend the 18<sup>th<\/sup> annual <a href=\"http:\/\/www.vts.com\/\">Del Mar Electronics &amp; Design Show<\/a>, which will be held at the Del Mar Fairgrounds <a href=\"http:\/\/www.delmarfairgrounds.com\/pdf\/fairgrounds_map.pdf\">(Map)<\/a> Wednesday May 2nd, 10am &#8211; 5pm and Thursday May 3rd 10am &#8211; 3pm.\u00a0 Admission to the show, the seminars, and parking at the show are ALL FREE.<\/p>\n<p>This is the <em>only<\/em> industrial trade show for manufacturers held annually in the San Diego region so this is the best opportunity for companies to find local and regional suppliers to \u201creshore\u201d manufacturing to the U. S.<\/p>\n<p>To help your company analyze the true Total Cost of Ownership to determine whether or not you should be returning manufacturing to America, I will be giving a presentation on \u201cReturning Manufacturing to America\u201d at 10 AM on Wednesday May 2<sup>nd<\/sup>.\u00a0\u00a0\u00a0 I will be considering:<\/p>\n<p><strong> <\/strong><\/p>\n<ul>\n<li>Hidden costs of doing business offshore that comprise a true understanding of the &#8220;Total Cost of Ownership&#8221;<\/li>\n<li>How you can calculate these costs utilizing the Total Cost of Ownership worksheet calculator developed by Harry Moser of the Reshoring Initiative<\/li>\n<li>Case stories reviewing some of the problems companies have experienced in outsourcing offshore<\/li>\n<li>Reasons why some companies are choosing to &#8220;reshore&#8221; manufacturing to the U.S.<\/li>\n<\/ul>\n<p>For the past 15 years, manufacturers have outsourced their manufacturing offshore in Asia, especially in China, to reduce costs to keep or increase market share. \u00a0However, the supply chain dynamics are changing, and the cost savings of outsourcing to China are eroding due to higher labor rates and shipping costs. \u00a0In the last few years, there have also been many news reports about outsourcing horror stories regarding poison or tainted Chinese products, Chinese counterfeit parts, intellectual property infringement, quality problems, and lawsuits so many companies are rethinking their decision about manufacturing in China.<\/p>\n<p>In August 2011, the Boston Consulting Group\u2019s released their first report <a href=\"https:\/\/www.bcgperspectives.com\/content\/articles\/manufacturing_supply_chain_management_made_in_america_again\/\"><span style=\"text-decoration: underline;\">\u201c<em>Made in America, Again: Why Manufacturing Will Return to the U.S.<\/em><\/span><\/a><em><a href=\"https:\/\/www.bcgperspectives.com\/content\/articles\/manufacturing_supply_chain_management_made_in_america_again\/\">,<\/a>\u201d<\/em> explaining how rising wages and other forces are steadily eroding China\u2019s once-overwhelming cost advantage as an export platform for North America.\u00a0 By around 2015, BCG concluded that when higher U.S. worker productivity, supply chain and logistical advantages, and other factors are taken fully into account, it may start to be more economical to manufacture many goods in the U.S.<\/p>\n<p>Now, a new BCG report,<a href=\"http:\/\/www.industryweek.com\/articles\/more_than_a_third_of_large_manufacturers_consider_reshoring_from_china_to_the_u-s-_27184.aspx?SectionID=69\"> \u201cU.S. Manufacturing Nears the Tipping Point, Which Industries, Why, and How Much?\u201d<\/a> released on March 22, 2012 by Harold L. Sirkin, Michael Zinser, Douglas Hohner, and Justin Rose has identified \u201cseven industry groups that account for $200 billion in goods imported from China for which rising costs in China will likely prompt manufacturing of goods consumed in the U.S. to return to the U.S.\u201d<\/p>\n<p>The report predicts that production of 10 to 30 percent of U.S. imports from China in these industries, which account for approximately 70 percent of goods that the U.S. imports from that nation, could shift to the U.S. before the end of the decade, adding $20 billion to $55 billion in output annually to the domestic economy.\u201d \u00a0The tipping-point sectors are transportation goods, appliances and electrical equipment, furniture, plastic and rubber products, machinery, fabricated metal products, and computers and electronics.<\/p>\n<p>BCG predicts that improved U.S. competitiveness and rising costs in China will put the U.S. in a strong position to add 2 million to 3 million jobs in a range of industries and an estimated $100 billion in annual output by the end of the decade which would reduce unemployment by 1.5 to 2 percentage points, and lower the nonoil-related merchandise deficit by 25 to 35 percent.<\/p>\n<p>According to a <a href=\"http:\/\/www.bcg.com\/media\/PressReleaseDetails.aspx?id=tcm:12-104216\">new survey<\/a> which BCG conducted in late February, \u201cMore than a third of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the United States from China or are considering it.\u201d<\/p>\n<p>The top factors cited as driving future decisions on production locations: \u00a0labor costs (57 percent), product quality (41 percent), ease of doing business (29 percent), and proximity to customers (28 percent). \u00a0In addition, 92 percent said they believe that labor costs in China \u201cwill continue to escalate,\u201d and 70 percent agreed that \u201csourcing in China is more costly than it looks on paper.\u201d<\/p>\n<p>In the new survey, \u201c67 percent of respondents in rubber and plastic products, 42 percent in machinery, 41 percent in electronics, 40 percent in computers, and 35 percent in fabricated metal products said they expect that their companies will reshore production from China to the U.S.\u201d<\/p>\n<p>\u201cNot long ago, many companies regarded China as the low-cost default option for manufacturing,\u201d observed Michael Zinser, a BCG partner who leads the firm\u2019s manufacturing work in the Americas. \u201cThis survey shows that companies are coming to the conclusion surprisingly fast that the U.S. is becoming more competitive when the total costs of manufacturing are accounted for.\u201d\u00a0 To request a summary of the survey findings, please contact David Fondiller at <a href=\"mailto:fondiller.david@bcg.com\">fondiller.david@bcg.com<\/a>.<span style=\"text-decoration: underline;\"> <\/span><\/p>\n<p>The Del Mar show will also feature a number of other free technical seminars.\u00a0 A few of the topics are:\u00a0 \u201cUsing LinkedIn as a Business Development Tool,\u201d \u201cNew Energy Storage Options for the Transportation Sector,\u201d \u201cBest of SolidWorks Tips and Tricks,\u201d and \u201cCounterfeit Electronic Components Are No Longer a Threat; They are a Reality.\u201d\u00a0 For the full seminar schedule, go to<a href=\"http:\/\/www.vts.com\"> www.vts.com<\/a>.\u00a0 In addition, all attendees are invited to the Post Time Party, Wednesday, May 2<sup>nd<\/sup>, from 5 &#8211; 7pm, with free refreshments provided thanks to sponsorship by Quality Systems Integrated Systems, Luscombe Engineering, Concisys Electronic Manufacturing Services, and National Test Equipment.<\/p>\n<p>My company will be exhibiting products for the <a href=\"http:\/\/www.electrofab.com\">companies we represent <\/a>at Booths 207 &#8211; 209 in the Bing Crosby Hall, which is to the left of the main entrance to the show. \u00a0\u00a0We look forward to seeing you at the show!<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If your company is considering \u201dreshoring\u201d manufacturing of some parts, assemblies, or products to the U. S., then you should attend the 18th annual Del Mar Electronics &amp; Design Show, which will be held at the Del Mar Fairgrounds (Map) Wednesday May 2nd, 10am &#8211; 5pm and Thursday May 3rd 10am &#8211; 3pm.\u00a0 Admission to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51,3,6],"tags":[10,60,26],"class_list":["post-311","post","type-post","status-publish","format-standard","hentry","category-manufacturing","category-outsourcing","category-reshoring","tag-buy-american","tag-manufacturing-2","tag-reshoring-2"],"_links":{"self":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts\/311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/comments?post=311"}],"version-history":[{"count":3,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts\/311\/revisions"}],"predecessor-version":[{"id":313,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts\/311\/revisions\/313"}],"wp:attachment":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/media?parent=311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/categories?post=311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/tags?post=311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}