Want to Revive U.S. Manufacturing? Walmart has Some…

Want to Revive U.S. Manufacturing? Walmart has Some…

Jul 31, 2017

“Want to Revive U.S. Manufacturing? Walmart has Some Suggestions” By Ian Wright, Engineering.com Revitalizing American manufacturing has been a hot topic for some time, gaining prominence as a talking point in last year’s election. Donald Trump’s victory led many to speculate about the future of manufacturing in the U.S., particularly whether it’s possible to bring manufacturing back to America. The latest piece of advice on this topic comes from a rather surprising source: Walmart. The retail giant recently convened a meeting of representatives from governments, businesses and non-governmental organizations (NGOs) to present a Policy Roadmap to Renew U.S. Manufacturing. “As we’ve worked over the last four years alongside our suppliers toward our goal to source an additional $250 billion [USD] in products that support American jobs, we’ve learned a great deal about the challenges our suppliers face in domestic manufacturing,” said Cindi Marsiglio, Walmart vice president for U.S. Sourcing and Manufacturing. “The good news is we’ve also learned how to overcome the challenges and, because of our experience, Walmart is uniquely positioned to help facilitate broad engagement in accelerating the expansion of U.S. manufacturing.” Before proceeding to the specifics of Walmart’s roadmap, it should be noted that a 2015 study by the Economic Policy Institute estimated that Walmart displaced over 400,000 jobs in the United States between 2001 and 2013 as a result of Chinese imports. The majority of these jobs were in manufacturing. In 2013 alone, the value of Walmart’s imports from China amounted to approximately $45 billion; this is the same year Walmart committed to sourcing an additional $250 billion over the next decade on products that support American jobs. Irony aside, Walmart’s policy roadmap cites four major barriers to U.S. manufacturing growth: Lack of an available, qualified workforce. Lack of coordination and financing in supply chains. Complexity and costs of local, state and federal regulations. Outdated tax system and trade agreements. According to an analysis conducted by The Boston Consulting Group (BCG), addressing these policy barriers to domestic manufacturing creates an opportunity to recapture approximately $300 billion in consumer goods that are currently imported, including furniture, cookware and sporting goods, potentially resulting in the creation of an estimated 1.5 million American jobs. Walmart’s roadmap includes ten “policy levers” to address the major...

Inspired by Trump, Samsung in Talks to Open South Carolina…

Inspired by Trump, Samsung in Talks to Open South Carolina…

Jun 26, 2017

“Inspired by Trump, Samsung in Talks to Open South Carolina Factory” By Timothy W. Martin, Wall Street Journal South Korean electronics giant would move some oven-range production to Newberry, S.C., facility from Mexico SEOUL— Samsung Electronics Co. is in late-stage discussions to invest about $300 million to expand its U.S. production facilities at a factory soon to be vacated by Caterpillar Inc., according to people familiar with the matter, with an announcement expected as early as next week. The facility eyed by Samsung is in Newberry, S.C., a town located about 150 miles northwest of the port of Charleston, the people said, with plans to shift over some production of oven ranges made currently in Mexico. The investment could generate around 500 jobs, and though the start date is unclear, production would likely begin next year, the people said. Samsung could eventually ramp up U.S. manufacturing of refrigerators, washers, dryers and other home appliances in subsequent years, the people said. Final details over incentives and other matters are still being hammered out between Samsung and South Carolina officials, the people said. Though unlikely, it is still possible for either party to walk away from the pact, the people said. The timing of the announcement could still change, the people said. But South Korea’s newly-elected President Moon Jae-in is scheduled to meet U.S. President Donald Trump for the first time next week in Washington. A Samsung spokeswoman declined to comment. Samsung’s interest in a U.S. factory was influenced by the election of Mr. Trump, who vowed on the campaign trail to bring more manufacturing jobs back into the country, The Wall Street Journal reported in March. Mr. Trump’s reshoring mantra brought promises from Asian billionaires such as SoftBank Group’s Masayoshi Son and Foxconn Technology ’s Terry Gou. Foxconn, the assembler of iPhones and other electronics, said Thursday it was considering seven states in the American heartland to invest $10 billion or more in factories. Samsung’s crosstown rival LG Electronics Inc. said in February it planned to build a new factory for washing machines in Tennessee, its first major U.S. plant. Samsung had previously said that it started reviewing U.S. options in the early fall last year,...

Where Manufacturing Is Thriving In The U.S.

Where Manufacturing Is Thriving In The U.S.

Jun 19, 2017

By Joel Kotkin and Mike Shires, Forbes Throughout the dismal presidential campaign, the plight of America’s manufacturing sector played a central role. Yet despite all the concerns raised about factory jobs leaving the country, all but 18 of the country’s 70 largest metropolitan regions have seen an uptick in industrial employment since 2011. And despite the slowdown in car sales, the job count continues to expand, albeit more slowly. Although the share of industrial jobs has shrunken from 10.5% of all nonfarm employment in 2005 to 8.5% today, manufacturing continues to have an outsized influence on regional economies, as is spelled out in the latest paper from the Center for Opportunity Urbanism. This stems in large part from the industrial sector’s productivity gains since 2001 — almost twice as much as the economy-wide average, according to the Bureau of Labor Statistics — and it has a far higher multiplier effect (the boost it provides to local job and wealth creation) than virtually any other sector. Manufacturing generates $1.40 in economic activity for every dollar put in, according to the U.S. Bureau of Economic Analysis, far greater than the multiplier generated by business services, information, retail trade or finance. To determine the places where manufacturing growth is the strongest, we looked at employment in the sector over time, assessing short-, medium- and long-term trends going back to 2005 and adding in variables for persistence and momentum as well. The results of these trends, based on three-month averages, are normalized and each MSA is assigned a score based on its relative position in each area.  The rankings this year produced some surprising results, as well as some familiar stories. Red States And The Rust Belt Win  Nine of this year’s top 10 regions for manufacturing job growth are in red states, led by top-ranked Louisville-Jefferson County, which straddles the border between Kentucky and Indiana. Since 2011, manufacturing employment in the metropolitan area has expanded 30.2% to a total of 83,300 jobs, led by a resurgent auto industry that accounts for 27,000 jobs in the area. Due to a slowdown in auto sales, the job count may be peaking, but the hub of the Bluegrass State has...

Did Trump Create the Bump in Reshoring?

Did Trump Create the Bump in Reshoring?

Jun 12, 2017

By Rob Spiegel, Design News 2016 tipped reshoring jobs into positive territory. Finally, more manufacturing jobs came back into the US than left. During all of 2016, candidate Donald Trump harped on the loss of US manufacturing jobs, scolding companies for moving their production out of the country. As those complaints mounted, jobs actually started to return to the US. The trend accelerated through 2016 and into early 2017. For the first time in decades, more manufacturing jobs returned to the US in 2016 then went offshore, according to the annual data report from the Reshoring Initiative . The report shows that the reshoring trend grew by over 10 percent in 2016, adding 77,000 jobs. That ties the 2014 record and exceeds the rate of offshoring by 27,000 jobs. The results bring the total number of manufacturing jobs brought back from offshore to more than 338,000 since the manufacturing employment low of February 2010. The Trump Factor Reshoring picked up steam all through 2016 and into the first quarter of 2017, according to the Initiative’s founder, Harry Moser. “In the first quarter of 2016, we announced about 10,000 jobs coming back. Then 12,000, then 23,000, and in the fourth quarter, 32,000,” Moser told Design News . “Continuing into the first quarter of 2017, 44,000 jobs were announced as coming back. The first quarter of 2017 was four times as high as the first quarter of 2016.” Given the timing of the jobs returning to the US – growing all through the election year – and given the additional surge in early 2017, Moser sees a connection between Trump’s campaign rhetoric demanding that manufacturing jobs return to the US and the jobs that actually began to return. “It’s clear to us that something significant happened in the fourth quarter of last year and it seems to me that would be Trump,” said Moser. Flipping the Offshoring Trend The Initiative’s report shows a net gain of 27,000 jobs in 2016. The report compares that to the 2000-2003 period when the US lost about 220,000 manufacturing jobs per year – net – to offshoring. “The tide has turned. The numbers demonstrate that reshoring is an important contributing factor...

After-Tax U.S. Manufacturing Profits Up 19.9% from Q1 2016…

After-Tax U.S. Manufacturing Profits Up 19.9% from Q1 2016…

Jun 6, 2017

“After-Tax U.S. Manufacturing Profits Up 19.9% from Q1 2016 to Q1 2017” By Terence P. Jeffrey, CNSNews.com The after-tax profits of U.S. manufacturing corporations increased from $118,199,000,000 in the first quarter of 2016 to $141,672,000,000 in the first quarter of 2017, an increase of $23,473,000,000 of about 19.9 percent, according to data released today by the Census Bureau. According to the Census Bureau, this data only counts the after-tax profits on manufacturing done within the United States. It does not count the after-tax profits that a U.S.-based manufacturing corporation may earn from products it makes in foreign countries. After-tax profits of U.S. manufacturing also increased from $131,727,000,000 in the fourth quarter of 2016 to the $141,672,000,000 reported for the first quarter of this year—a climb of $9,945,000,000 or about 7.5 percent from one quarter to the next. “U.S. manufacturing corporations’ first quarter 2017 unadjusted after-tax profits totaled $141.7 billion, up $23.5 billion from the after-tax profits in the first quarter of 2016, and up $9.9 billion from the after-tax profits of $131.7 billion recorded in the fourth quarter of 2016,” the Census Bureau said in the press release for its Quarterly Financial Report on U.S. manufacturing, mining, wholesale trade and selected service industries. In addition to these “unadjusted” numbers, the Census Bureau also publishes “seasonally adjusted” numbers for quarterly manufacturing profits. In the seasonally adjusted numbers, after-tax profits for manufacturing corporations in the first quarter this year were up $24 billion from the first quarter last year, and up $3.5 billion from the fourth quarter of last year. “U.S. manufacturing corporations’ seasonally adjusted after-tax profits in the first quarter of 2017 totaled $146.5 billion, up $3.5 billion from the after-tax profits of $142.9 billion in the fourth quarter of 2016, and up $24.0 billion from the after-tax profits of $122.45 billion recorded in the first quarter of 2016.” Actual sales for U.S. manufacturing corporations were up $94.2 billion from the first quarter of last year, according to the Census—rising from $$1,4881.8 billion in the first quarter of 2016 to $1576.0 billion in the first quarter of 2017....