Apple announces plans to repatriate billions in overseas cash…

Apple announces plans to repatriate billions in overseas cash…

Jan 19, 2018

“Apple announces plans to repatriate billions in overseas cash, says it will contribute $350 billion to the US economy over the next 5 years” By Anita Balakrishnan, CNBC Apple on Wednesday made a slew of announcements about its investment in and contribution to the U.S. economy in part because of the new tax law. The headline from Apple is that it will make a $350 billion “contribution” to the U.S. economy. The company also promised to create 20,000 new jobs and open a new campus. It said it expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States. This implies it will repatriate virtually all of its $250 billion in overseas cash. Apple also said it will spend over $30 billion in capital expenditures over the next five years. About $10 billion in capital expenditures will be investments in U.S. data centers, the company said. Apple added that it will spend $5 billion as part of an innovation fund, up from the $1 billion CEO Tim Cook announced last year on CNBC’s “Mad Money.” The job creation will include direct employment and also suppliers and its app business, which it had already planned to grow substantially (app developers earned $26.5 billion in 2017.) The new campus will focus on customer support. Wednesday’s announcement indicates that Apple will still have hundreds of billions of dollars in cash. It could spend that money on buybacks, dividends or acquisitions or moonshot projects. The announcement raises the bar for the world’s most valuable company — now a huge driver of the economy — to continue its dominance and growth in the wake of political pressure on big tech companies. The plan calls for Apple to keep up 2018’s $55 billion “supercycle” spending rate with domestic suppliers and manufacturers. “We have a deep sense of responsibility to give back to our country and the people who help make our success possible,” Cook said in a statement. Apple to create 20,000 jobs over the next 5 years from CNBC. In 2016, then president-elect Donald Trump publicly called out Apple’s reliance on its Chinese supply chain, telling The New York...

The State Of Manufacturing Reshoring Today

The State Of Manufacturing Reshoring Today

Jan 17, 2018

By Team Thomas of ThomasNet.com Over the past several years, many U.S. manufacturers have moved operations offshore in order to reduce labor costs and bring jobs closer to their raw material sources. Although this can be an efficient way of increasing profits, it does come with its drawbacks — more complex supply chains, delivery issues, culture and language barriers, and long distances to operations, to name a few, making it hard to keep track of jobs and quickly address issues as they arise. For these and other reasons, reshoring — bringing operations back to U.S. shores — is becoming increasingly common among manufacturing and industrial companies. A Look At Reshoring by the Numbers Over the last half-dozen years or so, manufacturing reshoring has brought hundreds of thousands of jobs back to U.S. soil. The Reshoring Initiative, a nonprofit organization that aims to bring well-paying manufacturing jobs back to the U.S., took a look at where those jobs are coming from and how the industry is benefitting as a result in their Reshoring Initiative 2016 Data Report.  According to the report, the transportation equipment sector, in particular, has seen the lion’s share of this growth with the addition of nearly 134,000 jobs. More than 35,000 jobs have been added in the electrical equipment, appliances, and components sector. Plastic and rubber products, fabricated metal products, computer and electronic products, apparel and textiles, chemicals, and machinery sectors have also brought jobs back to the United States, with each sector accounting for thousands of new positions. Source: Reshoring Initiative 2016 Data Report So where are these jobs coming from, and where are they going? The following countries saw the most jobs being brought back to American soil: China (nearly 80,000 jobs), Germany (over 54,000 jobs), Japan (over 35,000 jobs), and Mexico (over 19,000 jobs). Jobs are also pouring back in from Canada, Switzerland, Korea, Spain, the United Kingdom, and Denmark. Source: Reshoring Initiative 2016 Data Report Nearly all U.S. states are seeing job growth due to reshoring efforts, but those with the greatest influx are South Carolina (over 51,000 jobs), Tennessee (over 36,000 jobs), and Georgia (nearly 24,000 jobs). Source: Reshoring Initiative 2016 Data Report The Factors Fueling Reshoring But why now? There...

Tech Advances Drive Manufacturing Investments Back to U.S.

Tech Advances Drive Manufacturing Investments Back to U.S.

Oct 30, 2017

By Andrew Soergel, Economy Reporter, U.S. News Advances in artificial intelligence and industrial production are reshaping the world’s manufacturing landscape. Manufacturing at long last is enjoying a revitalization in the U.S. as companies from around the world invest in the country’s operations – a key development in President Donald Trump’s quest to make America great again. But presidential policies may not be the primary driver of the manufacturing shift back to the U.S. – and an industrial return isn’t expected to create nearly the same number of jobs that factory floors maintained in decades past. It appears to be technological innovations, rather than policies or an availability of labor, driving the manufacturing renaissance. And with operational advances extending well beyond the reaches of Silicon Valley and into Rust Belt communities in the Northeast and Midwest, many believe the country is well-positioned to be a leader in advanced manufacturing for years to come. “The reason is, candidly, it’s less about the manufacturing people. It’s more about the technology,” Mike Marusic, COO of Sharp Electronics, said Wednesday during an event hosted by Bloomberg. Marusic said Sharp is one of several companies that has chosen to increase investment in the U.S. rather than seeking out “traditional manufacturing places” like China and Thailand in recent years. Other companies include medical device manufacturer Insulet – which broke ground last month on a new central Massachusetts facility that’s expected to bring hundreds of jobs to the area after spending several years operating a production outfit in China – and General Electric, which has tweaked investment plans in recent years to funnel more resources into U.S. facilities rather than in countries with historically lower labor costs like Mexico and China. Even Foxconn, a Taiwan-based electronics manufacturer that helps assemble popular products like iPhones, recently announced plans to build a Wisconsin facility and develop operations in the U.S., despite its proximity to what have historically been considered countries with cheap labor. The Reshoring Initiative advocacy group estimates 338,000 jobs migrated to the U.S. from overseas between 2010 and 2016. The country on net is estimated to have gained 25,000 manufacturing positions last year – meaning more jobs returned to the U.S. than were offshored in 2016 for the first net gain in years. At...

Rebuild Manufacturing – the key to American prosperity

Rebuild Manufacturing – the key to American prosperity

Oct 25, 2017

Published by the Coalition for a Prosperous America Press Release –  October 25, 2017 By Michele Nash-Hoff I am proud to announce the publication of Rebuild Manufacturing – the key to American Prosperity by the Coalition for a Prosperous (CPA). I am currently Chair of our California chapter of CPA. Michael Stumo, CEO of CPA, said, “”Michele has been instrumental in developing our California chapter and has spread the word about CPA’s issues and proposals in her Industry Week column. Her new book shows the adverse effect of offshoring and U. S. trade deficits on American manufacturing and highlights CPA’s proposals to eliminate the trade deficit and improve the business climate for American manufacturers with new trade and tax policies.” In 2012, CPA published the second edition of Michele’s previous book, Can American Manufacturing be Saved? Why we should and how we can. My new book is based on my nearly 200 articles for my column on Industry Week’s website and my presentations on behalf of CPA and the Reshoring Initiative for the past five years. My book describes the current state of American manufacturing, discusses what are the main threats to rebuilding American manufacturing and recommends what strategies, and analyzes how trade agreements have affected American manufacturing. I discuss the role “reshoring” plays in rebuilding American manufacturing, what is currently being done to rebuild American manufacturing, shows how American innovation and advanced manufacturing contribute to rebuilding American manufacturing, and how we can solve the skills gap and attract the next generation of manufacturing workers. The book provides case stories of how some American manufacturers are succeeding against global competition by developing innovative products and becoming Lean companies. It concludes with specific recommendations of strategies, policies, and actions that can be taken towards rebuilding the manufacturing industry in America. Steve Minter, Sr. Editor, Industry Week, wrote, “Rebuild Manufacturing” represents the latest installment of Michele Nash-Hoff’s tireless efforts to promote the strengthening of U.S. manufacturing. The book demonstrates her encyclopedic knowledge of the problems that have beset manufacturing but, more importantly, presents manufacturers, policymakers and other readers with insightful recommendations for actions that will improve U.S. industrial competitiveness and the American economy.” Den Black, President...

U.S. Reshoring: A Collaborative Challenge

U.S. Reshoring: A Collaborative Challenge

Oct 23, 2017

Feature in Design-2-Part Magazine Manufacturing Experts Answer 5 Questions on How to Turn the Tide FAIRPORT HARBOR, Ohio—North America’s $137 billion metalforming industry is driven by the production of myriad precision metal products using stamping, fabricating, spinning, slide forming, and roll forming technologies, as well as vital value-added processes. In recent decades, approximately 3-to-4 million U.S. manufacturing jobs were lost to offshoring. The tide seems to be turning modestly in recent years as companies return U.S. production, or sourcing, from offshore. In comparison to 2000-2003, when the United States lost about 220,000 manufacturing jobs per year (net) to offshoring, 2016 achieved a net gain of 27,000. Progressively bridging this gap presents huge collaborative opportunities and challenges for all manufacturers, associations, employees, communities, and the U.S. government itself. The following Q&A explores factors that are key to the collective goal of gaining momentum in successfully returning the manufacturing of parts and products to the United States from offshore. Authors of the Q&A are two men with a vested interest in the subject of reshoring: John Stoneback, president of JM Performance Products, Inc., of Fairport Harbor, Ohio; and Harry Moser, president of the Reshoring Initiative, based in Kildeer, Illinois. JM Performance Products, Inc. has been manufacturing CNC mill spindle optimization products since 2009. The company’s Patented High Torque Retention Knobs overcome a critical “loose-tool” design flaw inherent in CNC v-flange tooling that was responsible for costly, industry-wide issues with CNC milling and boring that negatively impacted production costs, cycle time, and tooling costs. An essential element of the patented design is a knob that is longer and reaches a little deeper into the holder’s threaded bore. As a result, all thread engagement occurs in a region of the tool holder where the diameter is large, and where there is correspondingly more material to resist deformation. The Reshoring Initiative, founded in early 2010, takes action by helping manufacturers realize that local production, in many cases, reduces their total cost of ownership of purchased parts and tooling. The Reshoring Initiative also trains suppliers in how to effectively meet the needs of their local customers, giving suppliers the tools to sell against lower priced offshore competitors. The Initiative is...