Keys To Strengthening U.S. Manufacturing

Keys To Strengthening U.S. Manufacturing

Aug 11, 2017

By Jay Moon, Executive Director of the Mississippi Manufacturer’s Association Delta Business Journal Manufacturing in the United States is poised for a renaissance not seen at any other time in recent history. The past decade has seen new investments in automation and efficiencies that have significantly increased industrial productivity. Added to these rapid technological advancements, new proposals by the Trump administration promise to make U.S. based manufacturing more globally competitive. These proposals, if enacted, will once again position American’s industrial sector as the driving force of our economy. The three broad categories of reform—regulatory relief, tax adjustment and infrastructure investment—individually and collectively, will position America’s manufacturing base to remain globally competitive. After years of increasingly onerous, and expensive, regulations being forced on business and industry by unelected bureaucrats in Washington, Congress and the Trump administration have begun to rescind or drastically scale back these mandates. According to a recent study by the National Association of Manufacturers (NAM), “Since 2009, 637 major new regulations—defined as having an annual effect on the economy of at least $100 million—have been issued through October 2016.” Considering that manufacturers were the frequent target of these regulations, each new rule translated into increased compliance costs that put our companies at a major disadvantage with their global competitors. By removing these barriers to success, our nation’s manufacturers can begin to operate under a regulatory process that is both fair and scientifically based. Similarly, our current tax system puts American manufacturers at a competitive disadvantage. We have the highest corporate tax rate among developed countries. When this rate is combined with state taxes, manufacturers face an aggregate tax burden that can reach 40 percent or higher. In addition to a high tax rate on profitability, manufacturers have to contend with dozens of additional taxes at the federal, state and local levels that impact their bottom line. Fortunately, leadership in Congress is focused on advancing pro-growth, pro-competitive tax reform policies that will strengthen our economy, create jobs and promote investment in America. This comprehensive approach to tax reform, which has not happened since the mid-1980s, will be the catalyst to allow U.S. companies to compete effectively in the 21st century world economy. Equally as...

Manufacturing Adds 16,000 Jobs in July

Manufacturing Adds 16,000 Jobs in July

Aug 7, 2017

By Bill Koenig, Advanced Manufacturing US manufacturing added 16,000 jobs last month, with makers of durable goods doing the heavy lifting. The durable goods sector added 13,000 jobs while makers of non-durable goods boosted employment by 3000, according to a breakdown by industry issued today by the US Bureau of Labor Statistics. Notable job gainers included fabricated metal products (up 5000 jobs), transportation equipment (3800) and machinery (2100). Within transportation equipment, motorized vehicles and parts added 1600 jobs. That sector had lost 1300 jobs in June. The auto industry is seeing US sales soften following a record 2016 with 17.55 million deliveries of cars and light trucks. US light vehicle sales fell 7% in July and are down 2.9% for the first seven months of 2017, according to Autodata Corp. Automakers are also coping with plunging demand for cars. Those deliveries slid 14% in July and are down 12% for the first seven months. Widespread Gains Most durable goods categories had at least small employment gains. The few job losers included furniture (down 1600 jobs) and miscellaneous manufacturing (down 200). Manufacturing jobs totaled 12.425 million on a seasonally adjusted basis last month. That’s up from an adjusted 12.409 million in June. The July figure also was an improvement from 12.359 million manufacturing jobs in July 2016. Total non-farm employment increased by 209,000 jobs last month, the bureau said in a statement. That was better than the 183,000 gain forecast by economists polled by Reuters. The US unemployment rate edged down to 4.3% from 4.4% in June. Manufacturing jobs peaked in June 1979 (19.6 million on a seasonally adjusted basis, 19.7 million unadjusted). That sank to a low of 11.45 million adjusted and 11.34 million unadjusted in February 2010 following a severe recession caused by the 2008 financial crisis. Since that low, new manufacturing jobs have been created requiring increased skills because of more automation and technology in...

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...

Exclusive: GM CEO Mary Barra says the world needs more…

Exclusive: GM CEO Mary Barra says the world needs more…

Jun 30, 2017

“Exclusive: GM CEO Mary Barra says the world needs more coders” By Peter Valdes-Dapena, CNNMoney A lot of resources go into building cars, like steel, aluminum, rubber and glass. Also critical: Brains. But the engineering talent and computer coding skills that the industry needs is in short supply. That’s why General Motors CEO Mary Barra announced a new push to train engineers on Wednesday in New York City. The effort is specifically aimed at recruiting women and minorities. GM has long helped train engineers. Barra earned a degree in electrical engineering from General Motors Institute in Flint, Michigan — now Kettering University — an engineering and business school that was, at the time, operated by GM. “A car today has hundreds of millions of lines of code,” Barra said in an exclusive interview with CNN. “We do see a shortage if we don’t address this and I mean fully fundamentally. Every child needs to have these skills.” “A car today has hundreds of millions of lines of code,” Barra said in an exclusive interview with CNN. “We do see a shortage if we don’t address this and I mean fully fundamentally. Every child needs to have these skills.” So GM (GM) is working with groups that will train teachers and work with students from grade school on up for jobs in computer engineering, Barra said at Cadillac’s global headquarters in the West Village. In Detroit, there are currently three times as many job openings in computer programming as there are in manufacturing, said Hadi Partovi, founder of Code.org, which is one of the groups that GM is teaming up with. Code.org creates online computer programming lessons and works with schools to build computer literacy curricula. The group boasts that almost half of its 19 million online course participants are members of minority groups and that 9 million of them are girls. GM announced Wednesday it’s giving $200,000 to $250,000 each to Code.org and three other national groups that promote computer literacy GM is also working with Black Girls Code, a group that aims to increase the number of African-American women in the technology industry. Specifically, GM is helping Black Girls Code to start a chapter in the Detroit area. Another...

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,...