March 2019 E-News: 136,000 Manufacturing Jobs Reshored in 2018
M.R. Mold & Engineering
Preliminary results from the Reshoring Initiative database show more than
136,000 new manufacturing jobs announced in 2018 as a result of reshoring and
FDI (foreign direct investment) – second highest only to 2017. The full report
will be available soon at www.reshorenow.org.
Monthly Focus: Lean and Reshoring
Any company that imports products or components chosen primarily on the basis
of price should apply lean principles to its sourcing decisions.
As W. Edwards Deming wrote in Out of the Crisis, "End the practice
of awarding business on the basis of price tag. Instead, minimize total cost."
The Toyota Production System identifies wastes in any organization.
Offshoring exacerbates all seven of the Toyota wastes.
Walk the entire Gemba, the real place where work gets done. U.S. and
offshore teams work on lean, each in their own organizations. Who considers the
impact of importing instead of sourcing domestically and optimizes the entire
Sherrill Manufacturing wins the 2019 National Metalworking Reshoring
Owens accepted the Award from Harry Moser on March 8, 2019, at the MFG Meeting
Sherrill Manufacturing became the only flatware manufacturer in the U.S. when
it purchased and restarted portions of the Oneida Ltd. flatware factory in
Sherrill, NY. Product innovation and quality drive Sherrill’s success as it
sells its brand, Liberty Tabletop, primarily direct to consumers over the
internet. The winner also received a letter of congratulation from Ian Steff,
Deputy Assistant Secretary for Manufacturing, U.S. Department of Commerce. AMT, NTMA, PMA and the Reshoring Initiative sponsored the award. The 2020
Award will be launched soon. Contact
us for application details.
selection of Liberty Tabletop’s Made in USA flatware
Supply Chain Perils:Reports show increased risk to global supply chains in 2018
will continue into 2019. It behooves managers to find more localized
manufacturing sites to mitigate any disruptions.
U.S./Mexico partnership? Mexico and the U.S. should team up
to reshore and nearshore work flowing out of China in response to rising wages
and U.S. tariffs, especially because Mexico’s exports to the U.S. include 40
percent U.S. content. The impact of Mexico’s cartels on the safety of operations and employees
The psychological impact of job loss: Multiple studies
document The Despair of America’s Nonworking Men and the severe
psychological impact of job loss. In manufacturing, most of these losses stem
from offshoring. In our next newsletter, the Reshoring Initiative will report on
our research into providing good jobs via reshoring and FDI as a feasible
Does the U.S. face a security threat from China? The answer
is yes. This piece in the Washington Times sounds the alarm
and urges the U.S. toward a more aggressive policy to counter China’s race for
dominance in super computing, space exploration and artificial intelligence,
areas that pose the greatest risk to national security.
Trade negotiations are difficult to predict, but some things remain
certain: HBS professor Willy Shih outlines those economic forces – tradability, labor
arbitrage, subbing capital for labor or vice versa, and government policies –
largely consistent with our model of trade and reshoring. He notes that, "Rising
costs in emerging markets and increased use of automation are likely to decrease
trade based on labor arbitrage as a percentage of overall trade volumes in the
Consider The Silver Lining in the U.S. Manufacturing Slowdown:
The predicted slowdown may offer many companies and industries vital time to
accommodate upcoming trends such as additive manufacturing. "In an
additive-based economy, Americans will produce most of their goods
Reshoring is an efficient way to increase
corporate profits, reduce imports and regain manufacturing jobs in the United
States. It's also the fastest and most efficient way to strengthen the U.S.