July 26, 2019

July 2019 eNewsletter

July 2019 E-News: Made in America 2019
 

This fall, MadeInAmerica.com will launch the first ever large trade show and conference focused exclusively on manufacturers in the U.S.A., Made in America 2019 (Indianapolis, IN, October 3-6). This historic 800-exhibitor B2C and B2B show will highlight the advantages of domestic manufacturing and encourage companies to source and produce more in the States. Attendees will find an exciting array of consumer and business products. The Initiative’s Harry Moser is one of many speakers. The show has received a high level of national attention, with the founder appearing on CNBC’s Hannity on July 4.
Monthly Focus: Import Substitution Program (ISP)
 
 

The Reshoring Initiative has launched the Import Substitution Program (ISP) to help you convince importing companies to produce or source more of their products domestically. ISP identifies and qualifies the major importers of what you produce, and trains you to use our TCO Estimator to convince importers to produce or source domestically from you instead. It is a unique tool that can become an important part of any sales, marketing or economic development efforts. Replacing imports is a huge, largely untapped market; the annual value of goods imported to the U.S. is $2.4 trillion. Adjusted to U.S. Ex-Works price levels, the value is approximately $3.4 trillion, about 40% more than the value of annual U.S. manufacturing output.

Customized versions of ISP are available for:


We estimate that consistent use of the program would increase domestic manufacturing by about 10% and add one million manufacturing jobs.

In the News
 

Fed survey shows tariffs shifting work from China to the U.S.
Alan Tonelson reports that, according to the Dallas Federal Reserve Bank manufacturing report, "Many more companies that reported net negative impacts from tariffs were responding by replacing imports with domestic production, not with non-tariffed foreign products. The sample size here is small (46 firms), but 17.4 percent said they were ‘mitigating’ the tariff damage by finding new domestic suppliers and another 17.4 percent were bringing ‘production or processes’ back in-house. Only 10.9 percent answered ‘finding new foreign suppliers.’" See Trump’s Trade Wars Winning for America.

The 2019 SelectUSA Investment Summit was a great success!
 
Harry Moser, right, participated in Under Secretary of Commerce for International Trade Gil Kaplan’s 2019 ReSelectUSA Roundtable at SelectUSA 2019.
Commerce Secretary Wilbur Ross, pictured above right with Treasury Secretary Mnuchin, tweeted, "Nowhere else but in the US will you find such a mixture of innovation, entrepreneurship, diversity, dedication to hard work, & an incredibly high quality of life. Opening operations in the US provides companies w/access to the wealthiest & most discerning consumers in the world."
Here are some compelling predictions from the article:

  • 3D Printing (3DP) could reduce global trade, including reducing U.S. imports from China by 10%-25%.
  • "In addition, as mass production via 3DP becomes more economically feasible, supply chains could be shortened with more manufacturing carried out locally." "Net goods transportation may reduce as a result, negatively affecting transportation infrastructure’s revenue."
  • Fitch maintains that the bulk of U.S. imports from China are products that, based on recent technological advancements, are well suited for 3DP.

Crocs Says New Tariffs Could Force it to Cut China Production in Half
"If President Trump’s proposed additional tariffs on China prove more than a bluff, the move could reshape the footwear sourcing map…Crocs elaborated on the impact its business could see under a new tranche of footwear tariffs, saying the additional duties could see the brand scaling back on its China production by more than 50 percent by 2020."

Thinking about buying a new car?
There is no tool more powerful than consumer purchasing choice to facilitate real change. Consider buying one of the high-percentage American-made vehicles listed in the article: Ford and GM don’t make the most ‘American-made’ car. Here’s who does.

Study shows that emerging market (EM) middle class growth is plateauing.
One factor driving companies to produce in EMs, esp. China, was the EMs’ huge, rapidly growing middle-class markets. Factories shipped to the U.S. and into the local market. Now that growth has slowed, the justification of offshore production is reduced. See False Narratives: Rise of the Emerging Market Middle Class

Source: EM Advisors. Note: threshold for middle class income is $12K per capita in 2018 US dollar terms

Learn more about How Total Landed Costs Impact Your Bottom Line
Thomasnet Insights explains how the International Commercial Terms (also known as the Incoterms) and U.S. Customs and Border Protection (CBP) can impact costs. TCO is much more comprehensive than Total Landed Cost.

Upcoming Events
 

September 25th – Shingo Manufacturing Summit (Detroit, MI)

October 3rd – Made in America 2019 (Indianapolis, IN)
The conference will host over 30,000 people intent on strengthening American manufacturing. Anyone can attend by registering here or inquire to showcase as a U.S. manufacturer or American-made brand.

October 13-16th – IEDC Annual Conference (Indianapolis, IN) Reshoring Initiative will present and exhibit.

November 6th – Shop Metal Working Technology Mold Expo (Oldcastle, Ontario, Canada)

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