Inspired by Trump, Samsung in Talks to Open South Carolina…

Inspired by Trump, Samsung in Talks to Open South Carolina…

Jun 26, 2017

“Inspired by Trump, Samsung in Talks to Open South Carolina Factory” By Timothy W. Martin, Wall Street Journal South Korean electronics giant would move some oven-range production to Newberry, S.C., facility from Mexico SEOUL— Samsung Electronics Co. is in late-stage discussions to invest about $300 million to expand its U.S. production facilities at a factory soon to be vacated by Caterpillar Inc., according to people familiar with the matter, with an announcement expected as early as next week. The facility eyed by Samsung is in Newberry, S.C., a town located about 150 miles northwest of the port of Charleston, the people said, with plans to shift over some production of oven ranges made currently in Mexico. The investment could generate around 500 jobs, and though the start date is unclear, production would likely begin next year, the people said. Samsung could eventually ramp up U.S. manufacturing of refrigerators, washers, dryers and other home appliances in subsequent years, the people said. Final details over incentives and other matters are still being hammered out between Samsung and South Carolina officials, the people said. Though unlikely, it is still possible for either party to walk away from the pact, the people said. The timing of the announcement could still change, the people said. But South Korea’s newly-elected President Moon Jae-in is scheduled to meet U.S. President Donald Trump for the first time next week in Washington. A Samsung spokeswoman declined to comment. Samsung’s interest in a U.S. factory was influenced by the election of Mr. Trump, who vowed on the campaign trail to bring more manufacturing jobs back into the country, The Wall Street Journal reported in March. Mr. Trump’s reshoring mantra brought promises from Asian billionaires such as SoftBank Group’s Masayoshi Son and Foxconn Technology ’s Terry Gou. Foxconn, the assembler of iPhones and other electronics, said Thursday it was considering seven states in the American heartland to invest $10 billion or more in factories. Samsung’s crosstown rival LG Electronics Inc. said in February it planned to build a new factory for washing machines in Tennessee, its first major U.S. plant. Samsung had previously said that it started reviewing U.S. options in the early fall last year,...

Did Trump Create the Bump in Reshoring?

Did Trump Create the Bump in Reshoring?

Jun 12, 2017

By Rob Spiegel, Design News 2016 tipped reshoring jobs into positive territory. Finally, more manufacturing jobs came back into the US than left. During all of 2016, candidate Donald Trump harped on the loss of US manufacturing jobs, scolding companies for moving their production out of the country. As those complaints mounted, jobs actually started to return to the US. The trend accelerated through 2016 and into early 2017. For the first time in decades, more manufacturing jobs returned to the US in 2016 then went offshore, according to the annual data report from the Reshoring Initiative . The report shows that the reshoring trend grew by over 10 percent in 2016, adding 77,000 jobs. That ties the 2014 record and exceeds the rate of offshoring by 27,000 jobs. The results bring the total number of manufacturing jobs brought back from offshore to more than 338,000 since the manufacturing employment low of February 2010. The Trump Factor Reshoring picked up steam all through 2016 and into the first quarter of 2017, according to the Initiative’s founder, Harry Moser. “In the first quarter of 2016, we announced about 10,000 jobs coming back. Then 12,000, then 23,000, and in the fourth quarter, 32,000,” Moser told Design News . “Continuing into the first quarter of 2017, 44,000 jobs were announced as coming back. The first quarter of 2017 was four times as high as the first quarter of 2016.” Given the timing of the jobs returning to the US – growing all through the election year – and given the additional surge in early 2017, Moser sees a connection between Trump’s campaign rhetoric demanding that manufacturing jobs return to the US and the jobs that actually began to return. “It’s clear to us that something significant happened in the fourth quarter of last year and it seems to me that would be Trump,” said Moser. Flipping the Offshoring Trend The Initiative’s report shows a net gain of 27,000 jobs in 2016. The report compares that to the 2000-2003 period when the US lost about 220,000 manufacturing jobs per year – net – to offshoring. “The tide has turned. The numbers demonstrate that reshoring is an important contributing factor...

After-Tax U.S. Manufacturing Profits Up 19.9% from Q1 2016…

After-Tax U.S. Manufacturing Profits Up 19.9% from Q1 2016…

Jun 6, 2017

“After-Tax U.S. Manufacturing Profits Up 19.9% from Q1 2016 to Q1 2017” By Terence P. Jeffrey, CNSNews.com The after-tax profits of U.S. manufacturing corporations increased from $118,199,000,000 in the first quarter of 2016 to $141,672,000,000 in the first quarter of 2017, an increase of $23,473,000,000 of about 19.9 percent, according to data released today by the Census Bureau. According to the Census Bureau, this data only counts the after-tax profits on manufacturing done within the United States. It does not count the after-tax profits that a U.S.-based manufacturing corporation may earn from products it makes in foreign countries. After-tax profits of U.S. manufacturing also increased from $131,727,000,000 in the fourth quarter of 2016 to the $141,672,000,000 reported for the first quarter of this year—a climb of $9,945,000,000 or about 7.5 percent from one quarter to the next. “U.S. manufacturing corporations’ first quarter 2017 unadjusted after-tax profits totaled $141.7 billion, up $23.5 billion from the after-tax profits in the first quarter of 2016, and up $9.9 billion from the after-tax profits of $131.7 billion recorded in the fourth quarter of 2016,” the Census Bureau said in the press release for its Quarterly Financial Report on U.S. manufacturing, mining, wholesale trade and selected service industries. In addition to these “unadjusted” numbers, the Census Bureau also publishes “seasonally adjusted” numbers for quarterly manufacturing profits. In the seasonally adjusted numbers, after-tax profits for manufacturing corporations in the first quarter this year were up $24 billion from the first quarter last year, and up $3.5 billion from the fourth quarter of last year. “U.S. manufacturing corporations’ seasonally adjusted after-tax profits in the first quarter of 2017 totaled $146.5 billion, up $3.5 billion from the after-tax profits of $142.9 billion in the fourth quarter of 2016, and up $24.0 billion from the after-tax profits of $122.45 billion recorded in the first quarter of 2016.” Actual sales for U.S. manufacturing corporations were up $94.2 billion from the first quarter of last year, according to the Census—rising from $$1,4881.8 billion in the first quarter of 2016 to $1576.0 billion in the first quarter of 2017....

Manufacturing A Future For The Next Generation Workforce

Manufacturing A Future For The Next Generation Workforce

Jun 5, 2017

By Kylene Zenk, Manufacturing Business Technology Today, the U.S. manufacturing industry faces many challenges, yet perhaps the most significant is the current — and growing — skills gap with six out of ten production positions going unfilled due to a talent shortage. Closing the gap is a priority, but it’s challenging given the magnitude of the problem — according to research from Deloitte, nearly 3.5 million manufacturing jobs will need to be filled in the next decade, and two million of those jobs are likely to go unfilled. What is causing this gap? The primary factor is the significant increase in baby boomer retirements, as an estimated 2.7 million jobs will open as boomers continue to exit the workplace. Economic expansion will also play a role as 700,000 jobs will be created due to natural business growth. Perception and Education Compound the Challenge As the manufacturing industry loses its experienced knowledgebase to retirement, one would expect the next generation to be prepared to step in — but unfortunately, for many companies, that isn’t the case. Manufacturing can present a great opportunity for younger generations — millennials and Gen Z especially — as open positions are more technical, specialized, and demanding. However, finding qualified talent is increasingly difficult and the lack of it currently in place is creating situations where the talent isn’t there to step in for retirees. Many candidates don’t have the required STEM skills (science, technology, engineering, and math), which may be attributed to the decline in the amount of technical education programs offered at high schools today. Perhaps the biggest obstacle in overcoming the skills gap, however, is the fact that many people have misconceptions or preconceived notions about what it’s like to work in manufacturing today. They picture an archaic industrial plant, complete with old-fashioned equipment or lines of manual laborers, and assume a manufacturing career isn’t right for them. If so, they’re not alone. According to a recent survey commissioned by Kronos Incorporated and conducted online by Harris Poll, more than 50 million Americans have limited to no knowledge about the modern manufacturing industry, and only 37 percent of respondents said they would encourage their children to pursue a career in manufacturing. As...

Middle America feels left behind. Can the tech community help?

Middle America feels left behind. Can the tech community help?

May 18, 2017

By Caroline Fairchild, Senior Editor, Technology and Startups at LinkedIn Like so many things in business, the numbers speak for themselves. In 2016, venture capitalists invested nearly $70 billion across 8,000 U.S. startups. But close to 80% of that capital went to founders in just three states: California, New York and Massachusetts. This is a reality that, until recently, the tech community mostly accepted. A vast majority of the biggest venture capital firms in the country are in these coastal states, so it makes sense that investors are backing companies started in their own backyards. But then, something happened that made investors, founders and tech execs alike feel like they had to get out of their own bubbles: Donald Trump was elected president. In that moment, shellshocked leaders across tech started to think about how they could get back in touch with regions outside of the major metropolitan areas on the coasts. Only 50% of those born in 1980 or later will make more than their parents, new research shows. Trump’s election tapped into the angst about jobs disappearing and what people across the country consider to be unfair competition driven by technology. Leaders in the industry now want to see — and solve — this problem firsthand. Facebook CEO Mark Zuckerberg announced a tour across America to meet with families and workers in places like Fort Bragg, North Carolina and Blanchardville, Wisconsin. Y Combinator Founder Sam Altman went on a listening tour to speak with Trump’s supporters around the country. And now, investors have started to speak publicly about how they can diversify their portfolio to include founders solving problems for users outside of major city centers. Despite all this activity, the numbers have barely moved: In the first quarter of 2017, more than two-thirds of the $13.9 billion in venture capital deployed to startups went to founders in California, New York and Massachusetts, according to data from PwC and CBInsights. In this episode of Work In Progress, Chip Cutter and I explore what this concentration of capital means for business owners who aren’t based on the coasts. Steve Case, the CEO and chairman of Revolution, a venture capital firm based in Washington...