July 27, 2018

July Newsletter

Strong National Mfg. Strategy Offers Better Alternative to Tariffs
 
The Reshoring Initiative presented a national manufacturing strategy at the U.S. House of Representatives' Manufacturing Caucus Briefing

In the current trade debate and tariff maelstrom, alternative strategies should be garnering greater attention. A combination of policies such as a stronger skilled workforce, reduced corporate tax rates and regulations (largely implemented), lower U.S. $, a Value Added Tax, lower healthcare costs and universal use of Total Cost of Ownership for sourcing decisions would offer greater effectiveness with less collateral damage and minimal retaliation. When implemented, these strategies will eliminate the U.S. goods trade deficit, increase manufacturing by 40%, increase manufacturing employment by 5 million jobs and make both steel producers and users more competitive. The challenge is how to select, pass and implement these optimal policies.

At the June 8th U.S. House Manufacturing Caucus, Harry Moser presented content from the Reshoring Initiative’s "Competitiveness Toolkit a program that guides government entities to select the most-effective national policies to bring back the highest possible number of manufacturing jobs.

Good manufacturing policy decisions will be made only if popular misconceptions about manufacturing are corrected. See presentation slides

Reshoring Initiative

Harry Moser at the U.S. Manufacturing Caucus, June 8th, 2018

In the News
 

Important Notice: The Reshoring Initiative headquarters has moved. We have a new main phone number: (847) 867-1144. Please update it in your contacts.
 
Gain national recognition for your reshoring. The Second National Reshoring Award will recognize the top case of reshoring the production of products, parts or tooling made primarily by metal forming, fabricating or machining, including additive machining. AMT, NTMA, PMA and the Reshoring Initiative are sponsoring the award. Apply now!
With reshoring and Foreign Direct Investment (FDI) driving U.S. manufacturing growth, it may be time to expand. BLS (Biggins Lacy Shapiro) is conducting a joint Webinar with the Reshoring Initiative to discuss site selection strategies for new U.S. direct investment by foreign companies and U.S. companies. The webinar takes place on August 7th from 2-3pm ET. Sign up here.
Running a trade deficit presents current and future dangers. International economist Bob Brusca outlines the advantages and disadvantages of deficits vs. surpluses in relation to the other G7 countries. His article demonstrates how our deficit supports cheap consumption rather than investment and is eroding our national competitiveness. It presents a credible view rarely heard in the national media.
Severe errors in A.T. Kearney Report on Reshoring. Kearney repeated the methodological errors that it made when reporting on 2015 reshoring and was off by a factor of 10 on the number of 2017 reshoring cases. A detailed analysis is posted here.

Our Current Initiatives
 

We are continually developing tools to help the reshoring trend grow. Here are some of the products we are working on:

  • Import Substitution Program (ISP): Helps manufacturers, trade associations, equipment sellers, MEPs and economic development organizations identify and qualify major relevant importers and convince them to reshore. It also helps to identify supply chain gaps that can be filled by FDI. Contact us for help.
  • Back Office Reshoring Research with Projected 50% savings vs. offshore:  The Reshoring Initiative and Intellilink have joined forces to conduct the research. The purpose is to confirm the value proposition of reshoring back office processes (BOP) by using local U.S.-based staff and Robotic Process Automation (RPA) software. If the project is successful, the participating company will achieve higher productivity and an ongoing 50% cost savings vs. offshore outsourcing. The U.S. will have the potential to bring back up to one million BOP jobs. We are seeking a suitable company to participate in the study. Follow the link for details and participation benefits.

Select Publications
 

Assembly Magazine –“Which is the Greater Threat to US Jobs: Chinese or US Automation?

Modern Materials Handling – “Other Voices: Is the time right for reshoring?”

Upcoming Events
 

August 1-3rd – SEAMS Annual Networking Conference – Nashville, TN

August 7th – BLS/Reshoring Initiative Webinar How to Select the Best Location for Supplying the US Market

September 10-15th – IMTS (International Manufacturing Technology Show) 2018 – Chicago, IL –  We will hold a press conference at 2:30 pm on September 10 and a presentation on the Main Stage between North and South Halls at 9:30 am on September 14th. We are happy to meet anyone who is reshoring or wants to do so.

September 20-21st –  Lean Accounting and Management Summit – Jekyll Island, GA

October 2-3rd – Chief Housewares Executive Supersession, IHA – Rosemont, IL

October 10-12th – AMT MT Forecast– Indianapolis, IN (We will attend.)

December 6-7th – Manufacturing Leaders’ Summit – Las Vegas, NV

Many thanks to our readers, sponsors and companies using the Total Cost of Ownership Estimator® – your participation makes more reshoring possible.
Reshoring Initiative

Sincerely,
Harry Moser, Founder & President, Reshoring Initiative, (847) 867-1144
Millar Kelley, Newsletter Editor & Research Analyst
 
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