November 21, 2017

November 2017 eNewsletter

Reshoring and FDI Surging in 2017

The rate of jobs coming from offshore is up 200+% since the 2016 presidential election (Fig.1)

Reshoring Initiative

Fig.1 Data on reshoring and foreign direct investment (FDI) from the Reshoring Initiative Library.

We made a great start in 2017, but even at this higher rate, it will take 30 years to bring back five million jobs and eliminate our $700 billion non-petroleum goods trade deficit. A National Manufacturing Strategy is needed to ensure the current progress is maintained and further accelerated.

Our Current Initiatives
Help define the National Manufacturing Strategy: Complete the Reshoring Survey
The Reshoring Initiative has been helping companies do the best they can despite the tilted playing field. At the same time, we are working with the government and companies to eliminate the tilt and improve overall U.S. competitiveness. The Reshoring Initiative and Plante Moran have launched the “Manufacturing Reshoring Survey” to identify: (1) why companies produce and source so much offshore; (2) how big the price gap is, U.S. vs. offshore; and (3) what national and corporate policy changes are needed to make more reshoring viable for individual companies. We ask for your participation in the survey: Tell Washington what policy changes would motivate you to reshore.
Long-term planning needed
In conjunction with the survey, the Initiative is working on a Toolkit to improve U.S. competitiveness. We are seeking other organizations to partner with us in refining the program and presenting it to the administration and Congress. Please visit the Competitiveness Toolkit blog to see if you can help. Also see Industry Week: 40% Increase in US Manufacturing is Achievable for a description of the logic behind the Toolkit.
Import Substitution Plan
We are about to launch the Import Substitution plan, which will enable companies, equipment suppliers and economic developers to cooperate to substitute domestic production for imports. Stay tuned!
Mitchell Metal Products Wins First National Reshoring Award
Mitchell Metal Products won because it reshored successfully, increasing production dramatically and providing a shorter lead time. In 2016, the company reshored a cultivator handle subassembly, increasing the production volume from 4,500 made overseas to 30,000 made in Wisconsin.

Submit your reshoring case for the 2018 Award competition sponsored by PMA (Precision Metalforming Association) and the Initiative. We can help you reshore now, in time to meet the September 1, 2018 deadline. The Reshoring Initiative is discussing having similar Reshoring Awards for other industries. Contact us with ideas.

Reshoring Initiative

Fig. 2 Harry Moser, left, presents National Reshoring Award to Tim Zimmerman of Mitchell Metal Products

In the News
Update on cases of reshoring
We have posted a 9/30/17 top reshoring and top foreign direct investment (FDI) list, which includes newcomers like Intel, Merck, Amgen and Gentex. Also check out Manufacturing Report’s broadcast with Kimmie Candy, detailing a classic reshoring success story.
More changes are coming
Robotics will continue to play a huge role in reshoring. Perhaps the most dramatic recent example is the announcement by Amazon that it has patented an automated process to manufacture clothing in the U.S. There is also the rise of the point-of-demand model, explained in Manufacturing’s New World Order.
A selection of policy related topics are listed below:

Congress wants to incentivize US manufacturing and innovation
The Invent and Manufacture in America Act is a bill that would give a tax credit to companies that not only conduct research and development, but also manufacture domestically products resulting from that R&D. Although in conflict with simplifying tax codes, we think it’s a good idea.

North Korea factories humming with 'Made in China' clothes, traders say
Another tilt of the field.

California Cleans up its Procurement Act
This new legislation will require the state to buy from companies that have clean manufacturing processes, including at their suppliers anywhere in the world. Domestic companies bear the expense of meeting environmental standards and should not be disadvantaged by doing so.

Select RI Media Coverage
Industry Week: 40% Increase in US Manufacturing is Achievable

INC: Why U.S. Manufacturers Are Turning Their Attention to 'Reshoring'

Daily News, Guest Column: It’s Time for America to Prove its ‘Metal’

Upcoming Events
March 8 -10th - MFG Meeting - Miami, FL

April 15-18th - Investment Casting Institute - Spring Management Meeting
– Sonoma, CA

April 18-19th - United Grinding Symposium - Miamisburg, OH

Visit Upcoming Presentations for a complete schedule of events.
Want to help? The Reshoring Initiative is seeking volunteers to help enter articles on cases of reshoring and FDI into our library/database. The resulting reported data is key to convincing more companies to reshore. If you are interested in helping, please email Millar Kelley for more details:
We would like to welcome our new sponsors American Welding Society, Investing Casting Institute, and Legacy Executive Search Group. Thanks to all our readers, sponsors and companies using TCO – your participation makes more reshoring possible.
Harry Moser,
Founder & President
(847) 726-2975
Millar Kelley,
Newsletter Editor & Research Analyst
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