Wisconsin-Based Mitchell Metal Products Wins First…

Wisconsin-Based Mitchell Metal Products Wins First…

Oct 12, 2017

“Wisconsin-Based Mitchell Metal Products Wins First National Reshoring Award” By Beth Lawrence, Content & Media Manager, DGS Marketing Engineers CLEVELAND, October 12, 2017 – Mitchell Metal Products of Merrill, WI has received the first National Reshoring Award in recognition of the company’s success bringing manufacturing back home to the United States. The award, given by The Reshoring Initiative and the Precision Metalforming Association (PMA), honors a company that has effectively reshored products, parts or tooling made primarily by metal forming, fabricating or machining. Mitchell Metal Products was selected after using reshoring to complete more end products with less lead time. In 2016, the company manufactured a cultivator handle subassembly product, increasing the production volume from 4,500 made overseas to 30,000 made in Wisconsin. “We are thrilled and honored to receive the first National Reshoring Award,” said Tim Zimmerman, president of Mitchell Metal Products. “By utilizing the total cost of ownership approach pioneered by The Reshoring Initiative, we have won a number of value-added contracts and brought work back home. We are proud to be delivering high-quality products to our customers and creating good jobs here in Wisconsin. Right now, eight percent of our workforce is employed because of products we have helped to reshore.” The award was presented in Milwaukee, Wisconsin, on September 28, 2017, at Sourcing Solutions™, a popular procurement program hosted by PMA. This premier sourcing event brought together buyers and engineers from top manufacturing companies with pre-screened suppliers, enabling companies to find the most competitive resources for their projects. The 2018 National Reshoring Award will be presented next fall during Sourcing Solutions. Additional details about the event will be available in early 2018. “We are proud to be a sponsor of the National Reshoring Award and to celebrate companies who are contributing to the strength of the American manufacturing sector,” said Allison Grealis, vice president of membership and association services at PMA. “Through Sourcing Solutions and other efforts, PMA is committed to supporting manufacturers in their quest to find local, competitive suppliers and keep work here at home.” “I was delighted that the winning product was a relatively conventional item, instead of being an advanced aerospace or electronics component,” said Harry...

Custom Injection Molding Trends Higher

Custom Injection Molding Trends Higher

Sep 19, 2017

By Tony Uphoff, President and Chief Executive Officer at Thomas Publishing, ThomasNet  An interesting trend we’re seeing is a steady uptick in sourcing related to custom injection molding. This is a promising development for the economy as plastics is actually the third largest manufacturing industry in the country. Our data shows some significant increases in this important category. In the last five weeks on the thomasnet.com platform, sourcing for custom injection molding is up 35% over its all-time average. In the related category of injection molded plastic fabrication, sourcing activity has been higher in its all-time average in eight of the past 12 weeks. As you’re probably aware, American companies offshored a huge portion of their injection molding in recent decades. But when we look at how some companies today are weighing the benefits of reshoring versus offshoring, this upward trend in custom injection molding here in America starts to make some sense. The biggest incentive for offshoring has always been one of cost. But the days of cheap, abundant labor seem to be coming to an end, particularly in Asian countries such as China where there’s a growing demand for higher wages among the workforce. According to Harry Moser at the Reshoring Initiative, more and more companies today are looking at the TCO, or total cost of ownership, of offshoring versus reshoring, factoring in such things as increased productivity, shorter supply chains, and agility and innovation in customer responsiveness. Combine that with things like new tax incentives, lower freight costs, and abundant natural gas pushing down energy prices, and those companies, looking at TCO, are finding that they can manufacture more profitably right here at home. Specific to injection molding, there are also significant quality and consistency advantages to doing it here in the U.S. I speak to our clients regularly in the industry, many who have received overseas tooling from companies that are reshoring. One of those clients, the Rodon Group, reports that the majority of that tooling is virtually unusable here in America. It rarely meets the quality standards set forth by the Society of PlasticsIndustry, which specify things such as tolerances and finishes for injection molded parts here in the U.S. As Rodon’s Jill Worth told me, there’s...

How Wages, Taxes, and American Value are Reshoring…

How Wages, Taxes, and American Value are Reshoring…

Aug 24, 2017

“How Wages, Taxes, and American Value are Reshoring US Manufacturing Jobs” By Paul Carlson, CliftonLarsonAllen The flow of American manufacturing jobs overseas has peaked and is now reversing as U.S. companies find more than just economic reasons to bring them back home. Over the past few decades, the United States has lost as many as 4 million manufacturing jobs to foreign nations as companies look for ways to reduce costs. But the overseas manufacturing landscape is changing significantly. The emerging market wage difference that existed when the decision was made to offshore manufacturing is now dwindling, and in the past few years the costs of production have been increasing. This, in turn, has led to a growing number of companies reshoring — bringing manufacturing back to the United States. Catch the reshoring wave According to the 2016 Reshoring Report from the Reshoring Initiative — an organization working to return manufacturing jobs to the United States — more jobs are returning to the United States than are going abroad. “We publish this data annually to show companies that their peers are successfully reshoring and that they should reevaluate their sourcing and siting decisions,” says Harry Moser, founder and president of the Reshoring Initiative, in a May 15, 2017, statement. “With 3 to 4 million manufacturing jobs still offshore, as measured by our $500 billion annual trade deficit, there is potential for much more growth.” The report found that 77,000 new reshoring and foreign direct investment (FDI) manufacturing jobs were created in 2016. This is a 500 percent increase from the low of 2000 – 2003, when only 12,000 jobs were created on average annually. Overall, it is estimated that a net 25,000 new jobs were created in 2016. Jobs are returning from Asia Most of the jobs being reshored are from Asian countries, where 138,450 jobs have already been brought back to the United States. Of those jobs, most came from China. During the 2010 to 2016 timeframe, China accounted for approximately 60 percent of all manufacturing jobs created by reshoring and FDI. One of the biggest reasons for this trend is the shrinking wage benefit in China. Since 2001, the hourly Chinese manufacturing has risen by approximately 12 percent a year on...

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...