The Reshoring Challenge: Why and How CEOs are Moving…

The Reshoring Challenge: Why and How CEOs are Moving…

Aug 9, 2017

“The Reshoring Challenge: Why and How CEOs are Moving Jobs Back to America” By William J. Holstein, Chief Executive For his reshoring initiative, Rongione paid to move unique knitting equipment from China to Pennsylvania in part by using a YouTube video of Jackson to appeal to investors on Kickstarter, the crowdsourcing website. Bollman, which says it is America’s oldest hat company, with more than $10 million in annual sales, bought the Kangol brand in 2001 from a British company. That company had previously sent all of its custom-made machines dating back to the 1930s and 1940s to southern China, where it made the beret-like Kangol hats. So Bollman, in effect, inherited a factory in China, containing the special machines that performed at much lower costs than any new machine might. Bollman struggled to manage the factory profitably and ultimately sold it to a Chinese hat maker, but that arrangement fell apart and the idea to simply move the equipment to central Pennsylvania was born. Rongione set aside some of the employee-owned company’s funds, raised some from the state of Pennsylvania and then launched the Kickstarter campaign. Jackson, wearing a t-shirt that reads “Motherfunder,” a slight variation of a word he’s known for uttering on screen, appealed to viewers to support the move. They did, ponying up more than $100,000. The company recently moved 10 of the knitting machines, is preparing to move dozens more, and is hiring workers at a starting hourly wage of $10.30 an hour. But it is finding that its workers, both new and old, have a big learning curve ahead of them in absorbing how to master the knitting process, which is new to the company. “Hiring people with the specific knowledge has been virtually impossible,” Rongione says. “No one has the knowledge on this type of equipment.” So the company has brought in experts from Britain who are familiar with the equipment and worked with a local community college in Reading, Pennsylvania, to train students to become apprentices. The final outcome remains uncertain. “We still have a mountain to climb,” Rongione says. HOMEWARD BOUND More American CEOs are, in fact, deciding to bring home jobs from China and elsewhere....

Apple supplier Foxconn says it will build big Wisconsin factory

Apple supplier Foxconn says it will build big Wisconsin factory

Jul 27, 2017

By Seth Fiegerman and Julia Horowitz, CNN Tech Foxconn, the Taiwanese manufacturer that makes electronics for Apple and other tech companies, is coming to Wisconsin. The firm will invest $10 billion in Wisconsin to build a new manufacturing plant that produces LCD panels. The project will create 13,000 new jobs and should be completed by 2020, according to Wisconsin Gov. Scott Walker.  Foxconn’s estimate on jobs was more conservative. In a statement, the company said the project will create 3,000 jobs with the “potential” to generate up to 13,000 new jobs. Foxconn announced the investment from the White House. CEO Terry Gou was flanked by Walker, Vice President Mike Pence and House Speaker Paul Ryan. President Trump later joined them. Walker and Ryan thanked Trump for his work on the deal. “One thing we know about this president is how committed he is to reviving American manufacturing and bringing jobs home. This right here shows actual results,” said Ryan, a Republican who represents Wisconsin. Trump called Gou “one of the great businessmen anywhere in the world.” Shortly after President Trump’s inauguration, Gou began teasing plans to invest more than $7 billion in a plant for producing displays, with the potential to create as many as 50,000 jobs. However, Gou has been talking about shifting some manufacturing to the United States for several years, with little to show for it so far. In 2013, for example, Foxconn announced plans to build a $30 million plant in Pennsylvania. It has yet to be built. Foxconn got some generous tax incentives for its Wisconsin venture. The state’s deal for the new plant, which requires legislative approval, includes incentives totaling as much as $3 billion, Walker said. The details of the incentive package would be announced in the coming days, he said. Walker said the investment could transform Wisconsin. “We’ve named it Wiscon Valley,” Walker told reporters at the White House. “It could be very much like Silicon Valley.” Foxconn had considered building the plant in Ohio, Michigan and Pennsylvania, among other states. Foxconn currently has facilities in Virginia and Indiana, each of which employ fewer than 1,000 workers, according to its website. The announcement may give Trump a victory as he looks to bring...

The New American Reshoring Movement By the Numbers

The New American Reshoring Movement By the Numbers

Jul 26, 2017

By Cutting Tool Engineering Magazine Many people are under the impression that manufacturing jobs are only moving in one direction: offshore. While many corporations are shifting certain jobs overseas to reduce manufacturing costs, there’s a lot more to the story. In reality, there are many businesses that have been making strenuous efforts to bring jobs back to the United States, a phenomenon known as the reshoring movement. Want to learn more about reshoring in the United States? Keep reading to see which U.S. companies have brought the most jobs back to the states, plus more information on this important new movement.     Companies reshore jobs in part due to increasing foreign labor costs, but that’s just one reason. Simply put, as automation and tools for engineering have improved, so too has the complexity of the manufacturing industry. And many specialty manufacturing jobs can’t be easily sent overseas. Contrary to popular belief, improvements in automation technology and engineering tools have been major assets to the new American economy. While some manufacturing jobs have been lost in recent decades, the productivity of the U.S. manufacturing sector has actually increased substantially. That means American companies are producing more goods for less cost, which results in better prices for consumers and better wages for workers. Even so, companies in the manufacturing industry are making continual efforts to bring jobs back into the United States. Often, these new manufacturing jobs and the latest tools for engineering require advanced education and highly technical skills that only American workers have to...

U.S. Reshored Jobs Rising — But What Will 2017 Bring?

U.S. Reshored Jobs Rising — But What Will 2017 Bring?

Jun 2, 2017

By Taras Berezowsky, Metal Miner Looks like the tide has finally turned. Extending that metaphor is easier now than it’s ever been for us writing on this topic: the reshoring of American manufacturing from abroad — and specifically, the net gains in jobs that we’ve been seeing in 2016 and early 2017 as compared with the trends in the early 2000s. (I envision the emigrating jobs huddled together for warmth on a seaworthy vessel, with Shanghai getting smaller in the distance as the Pacific waves toss the boat ever closer toward Long Beach… if only it were that poetic.) Back to reality. The Reshoring Initiative has just released its 2016 Data Report, and the numbers seem to tell a rosy story. According to the report press release, “in comparison to 2000-2003, when the United States lost, net, about 220,000 manufacturing jobs per year to offshoring, 2016 achieved a net gain of 27,000.” “The numbers demonstrate that reshoring and FDI are important contributing factors to the country’s rebounding manufacturing sector,” the release concluded. But of course, it’s not that easy. Major policy changes will have to be made or improved to continue the reshoring trend (which is still in its early stages), according to Harry Moser, founder of the Reshoring Initiative. In a way, the U.S. should aspire to host conditions like those in Germany, Moser told me, including a supportive government, VAT, low healthcare costs, and an appreciation of the benefit of local sourcing. “Germany has a huge trade surplus and manufacturing at about 20% of employment,” Moser said, “and [the U.S. has] a huge trade deficit and manufacturing at about 10%.” RELATED: We chatted with Moser in a video interview a few years ago when the latest results within the trend were gaining steam (below). The Good News for U.S. Metals Jobs According to the full report, in 2016, fabricated metals had a good showing with the fourth-most reshored jobs by industry category. Also, primary metals moved ahead of non-metallic minerals: Good to see that toys and hobbies industry jobs are coming back… but not nearly as quickly. The “Good/Bad/Who Knows” News for U.S. Metals Jobs One aspect of our new economy that’s...

America’s Manufacturing Renaissance

America’s Manufacturing Renaissance

May 8, 2017

By Craig Guillot, Global Trade Magazine Already On The Upswing Before The Election, American Industry Readies For A “Trump Bump” American manufacturing is in the midst of a renaissance. While the sector has been riding a wave of automation, increased efficiencies and changing macroeconomic forces, manufactures say the Trump administration could help fuel further growth with a reduction in regulations and new tax incentives. Economic development commissions (EDCs) across the country say manufacturing is thriving with new expansions and investments being driven by local tax incentives, access to quality talent, and a value proposition making it increasingly cost-effective to produce products in the United States. On a national scale, support for innovative technologies, workforce development, and a pro-business environment have the potential to drive American manufacturing to new levels. Growth in many subsectors and regions The manufacturing sector is experiencing robust growth across the country. Major manufacturers such as Ford, GM, and Carrier have announced new investments, while the Labor Department revealed the country added 28,000 manufacturing jobs in February. National Association of Manufacturers President and CEO Jay Thomas attributes the surge to a “Trump bump” of positive economic activity and says that “confidence is high, and business optimism continues to soar” due to a focus on pro-business policies. President Trump said in late -January that he wants to cut regulations by 75 percent and that there will “be advantages” for manufacturers to operate in the United States. American manufacturing has been growing on an impressive scale. NAM reports the top five states for manufacturing growth are Indiana, Wisconsin, Michigan, Iowa and Alabama. Greg Canfield, Secretary of the Alabama Department of Commerce, says the sector remains a “core strength” of the state’s economy, generating 17 percent of state GDP ($35 billion) and 13 percent of the state’s jobs. Canfield notes that Alabama exported a new annual record of manufactured goods in 2016, totaling $10.7 billion in shipments. “Alabama’s manufacturing climate has been thriving in the past few years, with steady gains in employment, rising productivity, and increasing sophistication among manufacturers,” said Canfield. He adds that while there has been a sharp decline in apparel, textile and steel manufacturing due to offshoring and automation, automobile...