171,000 Jobs Come Home to USA in 2017

171,000 Jobs Come Home to USA in 2017

Jun 4, 2018

By Frank Spotorno with Dan Murphy, Yonkers Times A recent report by our friends at The Reshoring Initiative (reshorenow.org) found that last year, 2017, the USA saw an increase in manufacturing jobs coming back to this country, or reshoring, at a record pace: 171,000 jobs have returned as a result of reshoring or foreign investment. American companies are shifting their production of goods from outside the U.S. and bringing their jobs home. While the 171,000 jobs that returned last year is significant, projected figures from this year show that the trend toward making it in the USA is continuing. While some of the reasons for the return of manufacturing jobs to the USA can be attributed to President Donald Trump and his “Buy American, Hire American” initiative, other factors that add to the bottom line of U.S. companies include proximity to customers, government incentives, and the value of “Made in the USA” branding. Harry Mosher, president of the Reshoring Initiative, said that more jobs will continue to come back to the USA. “With 3 million to 4 million manufacturing jobs still offshore, as measured by our $500 billion-per-year trade deficit, there is potential for much more growth,” he said. “We call on the administration and Congress to enact policy changes to make the United States competitive again.” Mosher added that a strong dollar and a stronger skilled U.S. workforce helps continue the wave of jobs coming back home. The Reshoring Initiative has been calculating the cost of doing business for American companies overseas, and comparing it to making it in the USA for more than a decade. Every year the cost of building goods and products in China, in comparison to the USA, has narrowed and is now at the point where it makes real business sense to return manufacturing plants back to America. “We know where the imports are by country, and we know the price difference between the foreign price and the U.S price,” said Mosher. “The total cost of foreign-made goods delivered to the U.S. is a full 95 percent of the cost of U.S.-produced goods. We know how much you have to shift it to make the U.S. competitive with China.”...

China really is to blame for millions of lost U.S. …

China really is to blame for millions of lost U.S. …

May 15, 2018

“China really is to blame for millions of lost U.S. manufacturing jobs, new study finds” By Jeffry Bartash, MarketWatch Millions of Americans who lost manufacturing jobs during the 2000s have long ”known” China was to blame, not robots. And many helped elect Donald Trump as president because of his insistence that China was at fault. Evidently many academics who’ve studied the issue are finally drawing the same conclusion. For years economists have viewed the increased role of automation in the computer age as the chief culprit for some 6 million lost jobs from 1999 to 2010 — one-third of all U.S. manufacturing employment. Firms adopted new technologies to boost production, the thinking goes, and put workers out of the job in the process. Plants could make more stuff with fewer people. In the past several years fresh thinking by economists such as David Autor of MIT has challenged that view. The latest research to poke holes in the theory of automation-is-to-blame is from Susan Houseman of the Upjohn Institute. Academic research tends to be dry and complicated, but Houseman’s findings boil down to this: The government for decades has vastly overestimated the growth of productivity in the American manufacturing sector. It’s been growing no faster, really, than the rest of the economy. What that means is, the adoption of technology is not the chief reason why millions of working-class Americans lost their jobs in a vast region stretching from the mouth of the Mississippi river to the shores of the Great Lakes. Nor was it inevitable. Autor and now Houseman contend the introduction of China into the global trading system is root cause of the job losses. Put another way, President Bill Clinton and political leaders who succeeded him accepted the risk that the U.S. would suffer short-term economic harm from opening the U.S. to Chinese exports in hopes of long-run gains of a more stable China. No longer needing to worry about U.S. tariffs, the Chinese took full advantage. Low Chinese wages and a cheap Chinese currency CNYUSD, -0.6037%   — at a time when the dollar DXY, +0.48%  was strong — gave China several huge advantages. Companies shuttered operations in the U.S., moved to China and eventually set up...

U.S. Delays Decision On Tariffs For EU…

U.S. Delays Decision On Tariffs For EU…

May 1, 2018

“U.S. Delays Decision On Tariffs For EU, Prolonging Uncertainty” By Christopher Rugaber & Ken Thomas, AP Writers Featured on Manufacturing Business Technology WASHINGTON (AP) — The U.S. government will take another 30 days to decide whether to impose tariffs on imports of steel and aluminum from the European Union, Canada and Mexico, extending a period of uncertainty for businesses in those regions. The delay helps the U.S. avoid a potential trade war with allies as it prepares for tense trade talks in China this week. But the EU slammed the decision as bad for business that “prolongs market uncertainty, which is already affecting business decisions.” “As a longstanding partner and friend of the U.S., we will not negotiate under threat,” the EU said in a statement Tuesday. The Trump administration said Monday it had reached an agreement with South Korea on steel imports following discussions on a revised trade agreement. And the administration said it had also reached agreements in principle with Argentina, Australia and Brazil on steel and aluminum that will be finalized shortly. “In all of these negotiations, the administration is focused on quotas that will restrain imports, prevent transshipment and protect the national security,” the White House said. Facing a self-imposed deadline, President Donald Trump was considering whether to permanently exempt the EU and Mexico, Canada, Australia, Argentina and Brazil from tariffs of 25 percent on imported steel and 10 percent on imported aluminum that his administration imposed in March. The White House had given itself until the end of Monday to decide whether to extend the exemptions. The EU has taken a tough stance, raising the prospect of a trade war if the U.S. does not back down. It has a list of retaliatory tariffs worth about $3.5 billion on imports from the U.S. that it will activate if the EU loses its exemption. Germany said it continues to expect a permanent exemption. The EU’s largest steel exporter to the U.S., it accounted for about 5 percent of U.S. steel imports last year. “Neither the EU nor the U.S. can have an interest in an escalation of their trade tensions,” a spokeswoman for Chancellor Angela Merkel said Tuesday in a...

Manufacturers expanding at fastest pace in three years…

Manufacturers expanding at fastest pace in three years…

Apr 25, 2018

“Manufacturers expanding at fastest pace in three years, flash PMI data show” By Jeffry Bartash, MarketWatch U.S. economy is speeding up again, but inflation is warming up too, IHS Markit finds The numbers: American companies grew faster in April, especially manufacturers, in a reflection of a steadily expanding U.S. economy. But inflationary pressures increased as well. The flash IHS Markit U.S. manufacturing PMI climbed to 56.5 this month from 55.5 and touched a three-and-a-half-year high. Readings over 50 indicate expansion. A similar survey of service-oriented businesses that employ most Americans also rose. It edged up to 54.4 from 54. A flash reading is typically based on approximately 85%–90% of responses each month. At the same time, the survey showed the cost of raw or partly finished materials increased at the fastest pace in almost five years. Firms said the recently announced White House tariffs on steel as well as a large basket of Chinese goods were partly to blame. What happened: Businesses boosted production in April to match an increase in new orders. Companies also acted more aggressively to secure materials from suppliers because they are taking longer to deliver them. That suggests companies are running into bottlenecks, a potential hurdle for the economy if the situation gets worse. Tight supplies also mean higher prices — aka inflation. Even with new orders increasing, companies eased back on hiring. They focused more on improving efficiency — no surprise given a growing shortage of skilled labor. Big picture: The economy is ramping up for a strong spring, but shortages of skilled labor, rising inflation and the threat of widespread tariffs could put a cap on U.S. growth despite recent tax cuts and higher federal spending. Higher inflation could also spur the Federal Reserve to raise interest rates more aggressively, another potential drag on faster U.S. growth. What are they saying?: “After a relatively disappointing start to the year, the second quarter should prove a lot more encouraging,” said Chris Williamson, chief business economist at IHS...

US Cutting Tool Consumption Up 7.4% for First 2 Months of…

US Cutting Tool Consumption Up 7.4% for First 2 Months of…

Apr 16, 2018

“US Cutting Tool Consumption Up 7.4% for First 2 Months of 2018” By USCTI, AMT – Press Release Featured on AdvancedManufacturing.org February US cutting tool consumption totaled $190.12 million according to the US Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was up 3.5% from January’s $183.61 million and up 8.7% when compared with the $174.98 million reported for February 2017. With a year-to-date total of $373.73 million, 2018 is up 7.4% when compared with 2017. These numbers and all data in this report are based on the totals reported by the companies participating in the CTMR program. The totals here represent the majority of the US market for cutting tools. “February cutting tool sales show that business continues to grow, gaining 3.5% over January, a very solid start to 2018,” said Philip Kurtz, President of USCTI. “Year-over-year sales posted a 7.4% gain and it certainly looks like the trend will continue. News of tariffs and pressure on raw material prices could have an effect, but with strong market momentum it is certainly not a given that much will change. March may or may not bring winds of change, but it will for sure bring spring.” “Orders for cutting tools have benefitted in recent months from a faster rate of business investment spending, due to recent tax cuts and renewed strength in key markets such as metals, mining and machinery,” said Mark Killion, Director of US Industry at Oxford Economics. The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. It provides a monthly statement on US manufacturers’ consumption of the primary consumable in the manufacturing process -– the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in US manufacturing activity, as it is a true measure of actual production levels. Historical data for the Cutting Tool Market Report is available dating back to January 2012. This collaboration of AMT and USCTI is the first step in the two associations working together...