Wednesday, October 21, 2015

Reshoring Contributed to China's Slowdown!!!!!

Producing Near The Consumer Gains Traction According to the Harvard Business Review, some of China’s slowdown is due to “near-shoring.” The article, “You Can’t Understand China’s Slowdown Without Understanding Supply Chains,” by David Simchi-Levi of the MIT Forum for Supply Chain Innovation, cites a number of surveys that demonstrate that companies are ‘…moving from a global manufacturing strategy, whose focus is on low-cost countries, to a more regional strategy…” For the U.S. that means U.S., Canada and Mexico.

Forbes Agrees
Author Kevin O’Marah summarizes the big picture of reshoring by saying “…it is really more about increasingly localized supply chain designs. The idea is not only to reduce risk and total landed cost, but also take advantage of technology trends including robotics, additive manufacturing and internet-of-things to offer more customized products finished closer to the point of sale.” Read More

Certificate Programs Increasing
The U.S. is making progress in bridging the skilled workforce gap. “The U.S. Dept. of Education reports that sub-baccalaureate certificates such as associate’s degrees awarded in construction, manufacturing and transportation, jumped by 67.8% from 2000 to 2012, compared with 46.6% growth in four-year college enrollment during the same period.” Learn more here. The Reshoring Initiative cooperates with NIMS (National Institute for Metalworking Skills) and MSSC (Manufacturing Skill Standards Council). Both have averaged about 15% annual growth in certificates awarded per year for the last 10 years, accelerating higher in the last 2 to 3 years.