September 7, 2018

September eNewsletter

September 2018 E-News: We hope to see you at IMTS 2018
 
IMTS 2018, McCormick Place, Chicago, IL September 10-15, 2018.


The Reshoring Initiative will be at IMTS to promote reshoring, to help you reshore and to hear about your successes. Take advantage of these opportunities to get together:

  • Attendees and exhibitors: Friday, September 14, 9:30 a.m:
    Harry Moser will present How to Increase Manufacturing by 40% Without Tariffs on Center Stage between the North and South Halls.
  • Media: Monday, September 10, 2:30 p.m:
    Briefing at the Media Briefing Room. We will preview Friday's presentation, provide first-half 2018 reshoring results, refute myths about the feasibility of bringing millions of manufacturing jobs back to the U.S. and answer your questions, including about tariffs.
  • Everybody: To meet any day during IMTS
    E-mail Harry in advance or text him during IMTS at (847) 867-1144.

The International Manufacturing Technology Show, the largest manufacturing event in the Americas, features more than 2,400 exhibitors displaying the latest industry advancements in 1.3 million square feet of exhibit space. Up to 121,000 attendees are expected. IMTS showcases technology that is essential to increase U.S. productivity and thus competitiveness and reshoring. To compete, the U.S. must invest more, because China is investing about four times as much per year in manufacturing as the United States. Knowledge is power and IMTS is where manufacturers go to gain the information, inspiration and interaction necessary to be the best in the world. Register today at www.IMTS.com/register.

In the News
 

How to Select the Best Location for Supplying the U.S. Market:
Biggins Lacy Shapiro, Inc. (BLS), a leading site-selection consultant, and the Reshoring Initiative offer a methodology for new investments by foreign and U.S. companies. Watch their archived webinar, which compares the economics of three alternative factory locations: Germany, China and the U.S.
 
Two National Reshoring Awards offer opportunities to gain national recognition for your reshoring success:
  • Metalworking: The Second National Reshoring Award will recognize the top case of reshoring in 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!
  • Sewing: The First SEAMS National Sewn Products Award will recognize the top cases of reshoring in the sewn-products industry. Three Award categories cover cut and sew manufacturers, brands/OEMs and providers of textiles produced in the U.S. Details on eligibility and an application form are available at the SEAMS website.
Alternatives to Tarrifs:We agree with President Trump’s objective of eliminating the trade deficit but question his focus on tariffs. Here are two studies of alternatives:

  • Our Competitiveness Toolkit offers actions that are much more effective than tariffs. These actions will not result in retaliation or sanctions by other countries or the WTO, nor will they hurt some U.S. manufacturers to help others. Implementing half of these actions will eliminate the $700 billion goods trade deficit and create 5 million manufacturing jobs. These actions will take years to implement fully, primarily due to skilled workforce shortages.
  • U.S. Manufacturing Reshoring Study: Eliminating the trade deficit without tariffs ─ A six-month manufacturer survey by Plante Moran and the Reshoring Initiative. Some key conclusions:
    - 70% of import decisions are motivated by price.
    - The median import ex-works price is 60% of the U.S. ex-works price.
    - For each 1% reduction in U.S. price, 1.3% of imports are reshorable.
    - In descending order of impact, the best actions to reduce imports: lower USD exchange rate, lower corporate taxes, universal use of TCO instead of price in sourcing decisions, VAT (value added tax).
    - To eliminate the $700 billion goods trade deficit: Lower USD plus any one of the other actions.

Select Publications
 

Industry Week: Hope Is Not a Plan: The Myth of American Manufacturing
A detailed plan to revitalize U.S. manufacturing. Generally consistent with our recommendations.

Assembly Magazine: Reshored Jobs Up 2,800 Percent Since 2010
A summary of 2017 reshoring and FDI results with a focus on what's driving the surge and how you can strengthen your offering vs. offshore competitors.


U.S. House of Representatives Manufacturing Caucus Briefing: Revitalizing U.S. Manufacturing,archived presentation

Upcoming Events
 

September 10-15th - IMTS International Manufacturing Technology Show 2018 – Chicago, IL – See above.

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 exhibit

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. We welcome our newest sponsors, O’Neal, Inc., and SEAMS.
Reshoring Initiative

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