GM to Invest $1 Billion in U.S. Manufacturing Operations

GM to Invest $1 Billion in U.S. Manufacturing Operations

Apr 24, 2017

By Design-2-Part Magazine DETROIT—General Motors (GM) will invest an additional $1 billion in U.S. manufacturing operations that include multiple new vehicle, advanced technology, and component projects, the company announced recently. Details of individual projects will be announced throughout the year, GM said in a press release. The company also announced it will begin work on insourcing axle production for its next generation full-size pickup trucks, including work previously done in Mexico, to operations in Michigan, creating 450 U.S. jobs. “As the U.S. manufacturing base increases its competitiveness, we are able to further increase our investment, resulting in more jobs for America and better results for our owners,” said GM Chairman and CEO Mary Barra, in the release. “The U.S. is our home market and we are committed to growth that is good for our employees, dealers, and suppliers and supports our continued effort to drive shareholder value.” GM’s announcement is part of the company’s increased focus on overall efficiency over the last four years. With a strategy to streamline and simplify its operations and grow its business, GM reports that it has created 25,000 jobs in the U.S.—approximately 19,000 engineering, IT, and professional jobs and 6,000 hourly manufacturing jobs—and added nearly $3 billion in annual wages and benefits to the U.S. economy over that period. At the same time, GM reports that it has reduced more than 15,000 positions outside the U.S., bringing most of those jobs to America. During that period, the company says, it has moved from having outsourced 90 percent of its IT work outside the U.S., to an insourced U.S.-based model. “We will continue our commitment to driving a more efficient business,” said Barra, “as shown by our insourcing of more than 6,000 IT jobs that were formerly outside the U.S., streamlining our engineering operations from seven to three, with the core engineering center being in Warren, Michigan, and building on our momentum at GM Financial and in advanced technologies. These moves, and others, are expected to result in more than 5,000 new jobs in the U.S. over the next few years.” General Motors (www.gm.com) has also been facilitating its supplier base to do the same. The company has been executing...

The long, rough ride ahead for ‘Made in America’

The long, rough ride ahead for ‘Made in America’

Apr 17, 2017

By Nick Carey, Reuters Mini motorcycle and go-kart maker Monster Moto made a big bet on U.S. manufacturing by moving assembly to this Louisiana town in 2016 from China. But it will be a long ride before it can stamp its products “Made in USA.” The loss of nearly one out four U.S. factories in the last two decades means parts for its bike frames and engines must be purchased in China, where the manufacturing supply chain moved years ago. “There’s just no way to source parts in America right now,” said Monster Moto Chief Executive Alex Keechle during a tour of the company’s assembly plant. “But by planting the flag here, we believe suppliers will follow.” Monster Moto’s experience is an example of the obstacles American companies face as they, along with President Donald Trump, try to rebuild American manufacturing. U.S. automakers and their suppliers, for example, have already invested billions in plants abroad and would face an expensive and time-consuming transition to buy thousands of American-made parts if President Trump’s proposed “border tax” on imported goods were to become law. When companies reshore assembly to U.S. soil – in Monster Moto’s case that took two years to find a location and negotiate support from local and state officials – they are betting their demand will create a local supply chain that currently does not exist. For now, finding U.S.-based suppliers “remains one of the top challenges across our supplier base,” said Cindi Marsiglio, Wal-Mart Stores Inc’s (WMT.N) vice president for U.S. manufacturing and sourcing. Wal-Mart partnered with Monster Moto and several other U.S. companies in a drive to increase spending on American-made goods by $250 billion by 2023 in response to consumer demand for American-made goods. Their experience has shown Americans’ patriotic shopping habits have limits, namely when it comes to price. Take Monster Moto’s bikes, which sell for between $249 to $749. Keechle, the CEO, says he can’t raise those prices for fear his price sensitive prospective customers will turn to less expensive rivals made in China. “Consumers won’t give you a free pass just because you put ‘Made in USA’ on the box,” Keechle says. “You have to remain price...

Toyota bets on sprawling Kentucky plant with $1.3 billion…

Toyota bets on sprawling Kentucky plant with $1.3 billion…

Apr 13, 2017

“Toyota bets on sprawling Kentucky plant with $1.3 billion investment”  By Nathan Bomey, USA Today Toyota said Monday that it will invest more than $1.3 billion in its sprawling Georgetown, Ky., plant, its largest factory in the world, in a massive retooling project designed to bring new vehicles to market faster and more efficiently. Although the investment does not include new jobs, the move signals a deepening commitment to the U.S. market amid threats by President Trump of a border tax on automakers that bet on Mexico. The president, who had previously targeted Toyota in his criticism of companies that make vehicles in foreign markets and sell them to Americans, hailed the Japanese automaker’s investment as reflective of an “economic climate that has greatly improved under my administration,” according to a statement issued by Toyota. To be sure, the Toyota investment is part of a plan announced days before Trump took office to invest $10 billion in U.S. operations over the next five years. In that respect, the investment is no surprise. The future of the sprawling, 7.5 million-square-foot Kentucky plant, which is Toyota’s largest factory in the world, was never in doubt. The company makes several vehicles there, including the Camry sedan, which Cars.com has dubbed the most made-in-America car in the U.S. based on an assessment of the car’s components. Still, the investment marks a significant bet on the future of American manufacturing. Toyota said the retooling investment would pave the way for a new system of vehicle assembly that it’s calling Toyota New Global Architecture.  The new platform is designed to be easily adjusted for future models, giving Toyota the ability to make engineering and design changes swiftly to response to market changes. “This is the largest investment in our plant’s history and it speaks directly to the quality of our people and our products, as well as the partnerships we’ve forged in the local community and across the state,” Toyota Kentucky president Wil James said in a statement. “This major overhaul will enable the plant to stay flexible and competitive, further cementing our presence in Kentucky.” The plant currently has about 8,200 employees, having added 700 in recent months to launch...

Auto Parts Joint Venture To Add 200 Jobs In Indiana

Auto Parts Joint Venture To Add 200 Jobs In Indiana

Mar 20, 2017

By Andy Szal, Digital Reporter, Manufacturing.net Japanese manufacturer NTN Corp. on Friday announced that its Indiana-based joint venture plans to build a second auto parts factory and add about 200 jobs in coming years. NTK Precision Axle Corp. — a venture between NTN, Takao Kogyo and Neturen — makes driveshaft components in Anderson, Ind.; its second plant will make turning and heat treatment processes and increase the business’ overall production capacity. NTN officials said that the company hopes to bolster production in areas with strong auto parts demand. The new factory will also consolidate production of parts currently sourced from external partners operating overseas. Construction on the second plant is scheduled to begin next month. Mass production will start one year later, and the 200-employee workforce is expected to be in place for the 2021 fiscal...

Why one CT producer is investing time, millions to reshore

Why one CT producer is investing time, millions to reshore

Mar 16, 2017

By Gregory Seay, Hartford Business Journal Cromwell factory owner Jack Carey saw the threat looming several years ago, and began steps to protect his product source, employees and the future of family-run Carey Manufacturing Inc. Well before this sitting president’s “America First” campaign and mounting public support for boosting jobs at home, Carey, whose company supplies metal latches, catches and handles to commercial, industrial and military customers, sought to end its reliance on heavily subsidized Chinese raw materials and manufacturers of hardware found on everything from office desks to missile containers. So by early 2018, Carey says his $8 million company will have invested $2.5 million in Connecticut-sourced laser cutters, a new quality-inspection station and up to eight new jobs, to produce in-house the more than 300 varieties of latches and handles listed in its catalog. Chinese suppliers’ unpredictable pricing and uneven quality were Carey’s principal reasons for home-shoring his hardware production. “We’re trying to compete in a world where … we’re competing against governments that give things away. It’s tough,” said Carey, a former Pratt & Whitney Co. machinist who launched his company in 1998. His move, one of Connecticut’s and the nation’s growing examples of the “reshoring” trend to bring certain manufacturing and technology back to America, offers plenty of benefits, including a secure, stable supply of product and more production overtime for his shop-floor workers, Carey says. But even more important, says Carey, is that America can recapture production of some obscure but vital components such as the metal missile-case fasteners Carey supplies to the U.S. military. According to industry observers, reshoring of manufacturing and related technology to America has been underway since the Great Recession but is still in its infancy. The trend dipped in 2015 due to the strong dollar and rising oil prices, which favored overseas production, according to the Reshoring Initiative, a Midwest nonprofit advocate of restoring well-paying manufacturing jobs and vital goods production to the U.S. From 2010 to 2015, it’s estimated that Connecticut added 575 new jobs and eight new companies as a result of reshoring and foreign direct investment, according to the Reshoring Initiative. Many of the jobs are coming back to America from...