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...

Opinion: How the U.S. could bring back up to half…

Opinion: How the U.S. could bring back up to half…

Mar 9, 2017

“Opinion: How the U.S. could bring back up to half the manufacturing jobs moved overseas” By Harry Moser and Sandy Montalbano, Reshoring Initiative, MarketWatch Many companies that offshored manufacturing didn’t really do the math For decades, U.S. companies have been chasing cheap labor offshore and then importing products to sell in the U.S. market. Now, Trumponomics, a broader focus on Total Cost of Ownership (TCO quantifies all relevant costs, risks and strategic factors) and advanced manufacturing together have the potential to end the manufacturing stagnation of the last 30 years and create millions of manufacturing jobs in the U.S. Over the last 20 years, the boom in offshoring drove our goods trade deficit up by about $640 billion a year, costing us three to four million manufacturing jobs. The most direct way to reduce the trade deficit, as President Trump has said he wants to do, is to substitute domestic production for imports, i.e. via reshoring and foreign direct investment (FDI) in the U.S. The result of eliminating the trade deficit would be a rapidly growing manufacturing workforce for the first time in 40 years, a rise in average wages and a 25% to 30% increase in manufacturing output and jobs. Many companies that offshored manufacturing didn’t really do the math. An Archstone study revealed that 60% of offshoring decisions used only rudimentary cost calculations, typically just price or labor costs and ignored other costs such as freight, duty, carrying cost of inventory, delivery and impact on innovation. Most of the true risks and cost of offshoring were being ignored. Now is a good time to re-evaluate the cost of domestic vs. offshore production, and not just because of the risk of an angry tweet from the president. Chinese wages have been rising by about 15% a year since 2000. As a result, the Chinese labor cost in dollars per unit of output is now about four times what it was in 2000. We estimate that about 25% of what is now offshore would come back if companies quantified the total cost. These products would generally have characteristics such as high freight cost vs. labor cost, frequent design changes, volatility in demand, intellectual property risk,...

Factory moves from China to U.S. with help from robot…

Factory moves from China to U.S. with help from robot…

Feb 23, 2017

  “Factory moves from China to U.S. with help from robot workforce”   Automation has contributed to the declining U.S. manufacturing workforce. But as Mark Strassmann reports, now technology may help factories move back to the U.S.  ...

Walmart commits $250 billion to American-made goods

Walmart commits $250 billion to American-made goods

Feb 21, 2017

By Rich Rovito, Biz Times In 2013, Walmart, the world’s largest retailer, made a bold commitment to purchase an additional $250 billion in products supporting American jobs over 10 years. Based on data from Boston Consulting Group, it’s estimated that one million new U.S. jobs could be created through this initiative, including direct manufacturing job growth of approximately 250,000 and indirect job growth of approximately 750,000 in the support and service sector.  “We are fully invested in this work because it is good for everyone involved. It both allows us to give our customers the products they want at a better price, and it positions us to help our suppliers move jobs back to the United States,” said Joe Quinn, senior director of public affairs and government relations for Walmart. “Our core customer makes it clear that, when possible, families want to buy products that are made in this country.  And by making this work a priority we are increasing overall awareness of why it matters so much to communities.” Quinn will provide an update on the initiative during a break-out session at the Wisconsin Manufacturing Extension Partnership’s Manufacturing Matters! conference on Feb. 23 at the Hyatt Regency Hotel in Milwaukee. He will also offer a look at the retailer’s work with both large and small manufacturers in the effort to bring production and jobs back to the United States. Sourcing more products domestically has also allowed Walmart to lower its transportation costs and be quicker to react to consumer demand, he added. “As consumers tastes or desires change, the closer you are to your source of production the quicker you can change,” Quinn said. Walmart spends $4.4 billion annually with suppliers in Wisconsin and supports 68,000 supplier jobs in the state, according to the company. “Wisconsin is a state with a great work ethic and a long history of understanding manufacturing,” Quinn said. He noted that one of Walmart’s major Wisconsin suppliers is Kimberly-Clark Corp., which produces paper-based consumer products, including diapers, toilet paper and facial tissue, at its manufacturing complex in Neenah. Feedback from consumers has shown support for Walmart’s program, with research showing that where a product is made is second...