The State Of Manufacturing Reshoring Today

The State Of Manufacturing Reshoring Today

Jan 17, 2018

By Team Thomas of ThomasNet.com Over the past several years, many U.S. manufacturers have moved operations offshore in order to reduce labor costs and bring jobs closer to their raw material sources. Although this can be an efficient way of increasing profits, it does come with its drawbacks — more complex supply chains, delivery issues, culture and language barriers, and long distances to operations, to name a few, making it hard to keep track of jobs and quickly address issues as they arise. For these and other reasons, reshoring — bringing operations back to U.S. shores — is becoming increasingly common among manufacturing and industrial companies. A Look At Reshoring by the Numbers Over the last half-dozen years or so, manufacturing reshoring has brought hundreds of thousands of jobs back to U.S. soil. The Reshoring Initiative, a nonprofit organization that aims to bring well-paying manufacturing jobs back to the U.S., took a look at where those jobs are coming from and how the industry is benefitting as a result in their Reshoring Initiative 2016 Data Report.  According to the report, the transportation equipment sector, in particular, has seen the lion’s share of this growth with the addition of nearly 134,000 jobs. More than 35,000 jobs have been added in the electrical equipment, appliances, and components sector. Plastic and rubber products, fabricated metal products, computer and electronic products, apparel and textiles, chemicals, and machinery sectors have also brought jobs back to the United States, with each sector accounting for thousands of new positions. Source: Reshoring Initiative 2016 Data Report So where are these jobs coming from, and where are they going? The following countries saw the most jobs being brought back to American soil: China (nearly 80,000 jobs), Germany (over 54,000 jobs), Japan (over 35,000 jobs), and Mexico (over 19,000 jobs). Jobs are also pouring back in from Canada, Switzerland, Korea, Spain, the United Kingdom, and Denmark. Source: Reshoring Initiative 2016 Data Report Nearly all U.S. states are seeing job growth due to reshoring efforts, but those with the greatest influx are South Carolina (over 51,000 jobs), Tennessee (over 36,000 jobs), and Georgia (nearly 24,000 jobs). Source: Reshoring Initiative 2016 Data Report The Factors Fueling Reshoring But why now? There...

US Manufacturing Adds 25,000 Jobs in December

US Manufacturing Adds 25,000 Jobs in December

Jan 9, 2018

By Bill Koenig, AdvancedManufacturing.org US manufacturing added 25,000 jobs in December, primarily in durable goods. Makers of durable goods boosted payrolls by 21,000 jobs, according to a breakdown by industry sector released today by the US Bureau of Labor Statistics. Jobs gains were widespread throughout durable goods. Major gainers included machinery (up 6000 jobs) and fabricated metal products (up 5400). The only durable goods category posting a job loss was furniture, down 700. The December results capped off a year that saw manufacturing employment expand by 196,000 jobs, of which 130,000 was in durable goods industries. Manufacturing lost 16,000 jobs in 2016, the bureau said in a statement. In 2015 and 2016, aerospace and the auto industry were the strongest job performers in manufacturing. During 2017, other industries picked up the pace of job generation. Manufacturing totaled 12.539 million jobs on a seasonally adjusted basis in December. That’s up from 12.514 million in November and 12.343 million in December 2016. Total Jobs Total non-farm employment increased by 148,000 jobs last month, the bureau said in the statement. That was less than the 190,000 median estimate of economists surveyed by Bloomberg. The US unemployment rate remained unchanged at 4.1%, the bureau said. 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 increased automation and technology in...

NAFTA renegotiation must be to strengthen US…

NAFTA renegotiation must be to strengthen US…

Dec 7, 2017

“NAFTA renegotiation must be to strengthen US manufacturing competitiveness” By Steve Handschuh and Cody Lusk, The Hill Some might assume that, from an automotive industry perspective, the North American Free Trade Agreement (NAFTA) is a “Michigan automaker issue.” But in fact, the positive impacts of NAFTA in the automotive industry touch every state — and just about every neighborhood — in the U.S. Motor vehicle parts manufacturing facilities are located across the country and directly employ more than 871,000 Americans. Of course, many are in or near Michigan, but tens of thousands of motor vehicle parts manufacturing jobs are in states like Ohio, Indiana, Tennessee, Kentucky, Alabama and Illinois. Nearly 32,000 motor vehicle parts manufacturing jobs are in California — and that number does not include the fast-growing automotive technology industry that has swept through Silicon Valley and beyond. Just think about automated and autonomous vehicles, smart cities and grid capabilities enabled by vehicle-to-infrastructure communications and vehicle-to-vehicle communications — these current and emerging technologies are motor vehicle parts revolutionizing how we use motor vehicles. NAFTA has made these innovations and job growth possible. Americans learn about and access these incredible technologies in new cars at their neighborhood auto dealership. Last year, 16,708 auto dealers operated in every corner of the United States, providing 1,131,900 well-paid American jobs ranging from supervisors to salespeople to technicians, all while selling a record 17.4 million light vehicles. That’s 2 million more vehicles than were sold the year before NAFTA went into effect. Dealers in all 50 states deliver an important service to their communities, offering a wide variety of competitively priced vehicles and developing strong relationships with their customers, an important factor in effectively executing safety recalls and ensuring that the vehicles on our roads are properly serviced. From parts manufacturers to community dealer showrooms, a free trade environment and an open supply chain have kept the cost of automobiles down while giving the consumer access to safety and other technologies that save lives, reduce emissions, ease traffic congestion and improve quality of life. That is why keeping NAFTA intact is so important and why we are part of the Driving American Jobs community of auto trade associations, manufacturers,...

Making Manufacturing Great Again Would Add $530 Billion…

Making Manufacturing Great Again Would Add $530 Billion…

Nov 28, 2017

“Making Manufacturing Great Again Would Add $530 Billion to GDP” By Andrew Soergel, Economy Reporter, U.S. News  A new report suggests investments in today’s manufacturing operations could carry hundreds of billions of dollars in economic payoffs. The U.S. manufacturing sector has weathered a bumpy road over the course of the past two decades – but successfully righting the country’s industrial ship would mean an economic windfall of $530 billion, according to a new report from The McKinsey Global Institute. McKinsey put out a lengthy report last week profiling the past several years of U.S. manufacturing malaise – noting that only a few sectors, like “pharmaceuticals, electronics and aerospace” have emerged relatively unscathed. “Some industries staged a modest demand-driven recovery between 2010 and 2015. But growth in overall U.S. manufacturing output has been slowing for two decades, with little net increase during the most recent decade,” the report said. “Today there are roughly 25 percent fewer U.S. manufacturing firms and plants than there were in 1997, reflecting not only closures but also fewer manufacturing startups. Along the way, the sector has shed roughly one-third of its jobs.” The sector’s decline has been bad news for America’s international standing, as “low-cost contract manufacturers in locations such as Mexico, China, Vietnam and Bangladesh” gained market share. It’s also contributed to an erosion of the U.S. middle class, eaten away at economic growth and – along with a rise in automation – contributed to significant job losses. There were more than 5 million fewer manufacturing workers in the U.S. last month than there were 20 years prior in October 1997, according to the Bureau of Labor Statistics. Smaller manufacturers, in particular, have suffered, while larger operations have in many cases managed to navigate the complicated international industrial waters. “Many Americans long for a return to the glory days of the 1960s and ’70s, when manufacturing jobs were the bedrock of the middle class and the United States led the world in industrial output,” the study said, in some ways reminiscent of President Donald Trump’s call to restore manufacturing’s prominent role in the economy. The report makes no reference to Trump or his call for a manufacturing renaissance. But...

Q&A: What The GOP Tax Plan Means For Distributors…

Q&A: What The GOP Tax Plan Means For Distributors…

Nov 6, 2017

“Q&A: What The GOP Tax Plan Means For Distributors & Manufacturers” By Mike Hockett, Manufacturing.net In late September, President Donald Trump and congressional Republicans unveiled an outline of a proposed tax plan that Trump has boasted as the largest in U.S. history. On Sept. 29, Trump provided the broad strokes of that plan in a speech to the National Association of Manufacturers in Washington D.C., with the $6 trillion plan including significant tax cuts for corporations, simplified tax brackets and nearly double the standard deduction used by most tax filers. However, the finer details of the plan are still largely unknown by the general public. Aside from a 2015-2016 industrial recession, industrial distributors and suppliers have often cited tax burdens and regulations as hurdles to business growth, so those companies would be wise to keep tabs on what a new tax plan would involve for them. ID recently spoke with Jim Brandenburg, Tax Partner at Sikich LLP, about what Trump’s tax plan means for manufacturing, especially for distributors. Brandenburg’s extensive knowledge of tax legislation and experience working with distributors and manufacturers give him a unique perspective discussing current tax impacts and what future implications could be of the proposed tax plan. ID: From what you’re hearing, what are distributors and manufacturers’ biggest criticisms/pain points with the current tax structure/regulations? Jim Brandenburg: High tax rates and uncertainty regarding tax policy and various tax provisions are ongoing pain points for manufacturers and distributors. Uncertainty stems from the fact that many benefits that enable a company to reduce their annual tax burden are not permanent, which hinders a company’s ability to plan too far into the future. For example, under current law, bonus depreciation, which allows companies to immediately deduct the cost of newly purchased assets (e.g., machinery and equipment), is set to be reduced in 2018, reduced again in 2019 and then expire in 2020.  The tax reform debate creates additional uncertainty and leaves companies in a holding pattern as they wait and see whether any legislation will pass at all and, if so, what form the final legislation will take. However, manufacturers and distributors have long sought lower tax rates and would welcome the decrease in the corporate and small business pass-through...