December 2021 E-News: Provide Your Input to Strengthen 2022
Overwhelming supply chain weaknesses revealed by the pandemic have defined 2021. Shortages in labor, raw materials and transportation have accelerated the U-turn from globalization to localization. Unsurprisingly, recent Reshoring Initiative data suggests that 2021 will set a new reshoring and FDI record. We have outlined below how you can help make 2022 even stronger.
Interested in helping? Feedback from our readers is the greatest gift there is!
Total Cost of Ownership Estimator® Update - We are revising the TCO Estimator and would love to receive suggestions/requests from users or anyone willing to test it. Contact us to participate.
Impact of quote time and quoted delivery time on order hit rate or pricing - How much of an advantage does speed provide?
Made-in-USA labeling - If you have achieved and promoted Made-in-USA status, how did that affect your unit sales or pricing power?
Best practices at recruiting into the manufacturing skilled workforce - (e.g., for apprentice programs).
Causes of supply chain disruption - Is the disruption mostly coming from offshore? Can you break out its causes in your supply chain? What's the impact of each of these factors:
Offshore supply chain: Impacting you directly or via a lower tier in your supply chain?
Purely domestic supply chain?
Stainless steel availability - See Harry Moser’s and C.J. Nord’s article, America’s stainless steel shortage will not abate, in MetalMiner. “The shortage appears to be hitting mom-and-pop manufacturers much harder than the large OEMs.” The Reshoring Initiative calls on the stainless mills and distributors to consider their own long-term self-interests: The longer it takes to improve the supply situation, the more business U.S. machine shops will lose to overseas competitors, reducing future U.S. demand for stainless. Much of the OEM demand will disappear as EVs replace internal combustion engine-driven cars.
Your own reshoring plans - If your company is planning to reshore or has done so recently, please let us know about it. We can offer help and free publicity.
Time and money always help! - Consider making a 2021 tax-deductible donation to the Reshoring Initiative. We also seek volunteers to help enable reshoring. We are looking for several experienced manufacturers to commit 5 or 10 hours per week for at least a few months. Helpful qualifications include Microsoft Excel competence, general manufacturing knowledge and comfort talking to other manufacturers by phone or via Zoom. Successful volunteer work could lead to paid part-time contract work.
Metalworking: The Fifth National Metalworking Reshoring Award will recognize the top reshoring project 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. Find application details here. Winner to be recognized at IMTS 2022.
Sewing: The SEAMS/Reshoring Initiative Sewn Products National Reshoring Award recognizes the top reshoring projects in the sewn-products industry. Three award categories cover cut and sew manufacturers, brands/OEMs and providers of textiles produced in the U.S. Check back soon for 2022 application details.
Need Help Reshoring? - We have developed programs to help companies, MEPs, EDOs and Governments increase domestic production and sourcing. Click on the links and/or contact us.
Trade balance by state - This study by Jack Kirr at MT Analysis shows that of the 32 states that produce 94% of U.S. manufacturing, only four demonstrate positive goods trade balances. These four states export many mined and grown products. U.S. trade looks like that of a developing country: Weak overall and heavy on commodities. The deficit remains a huge problem. We need to reshore much faster to address it.
Analysis: Shipping costs – Another danger for inflation-watchers to navigate - The “global shipping crisis looks set to go on delaying goods traffic and fueling inflation well into 2023.” Xeneta Chief Analyst Peter Sand “does not expect container shipping costs to normalize before 2023.” Sand said, “The element of shipping, in overall prices, small as it may be, is much bigger than ever before, and it could be a permanent lift to prices going forward.”
Serving local buying habits provides competitive advantages.
Nimble supply chains are a response to serving local demand.
Data is the next logical step for continuous improvement.
Harry Moser Inducted into Association for Manufacturing Excellence Hall of Fame - The Association for Manufacturing Excellence (AME) inducted Harry Moser, president of the Reshoring Initiative®, into the AME Hall of Fame, which recognizes industry thought leaders and influencers who support the values, principles and practices found within leading enterprise excellence organizations. The nomination criteria include the significance of an individual's contributions to the growth of enterprise excellence within the lean, continuous improvement community. Harry is not a lean expert; however. the logic of TCO, of eliminating the wastes required to ship globally, is entirely consistent with lean. Jim Womack, an earlier Hall of Fame inductee, refers to “leanshoring,” being sure to improve the flow, technology and training when a company reshores.
Left, Kimberlee A. Humphrey, AME president and CEO; Right, Harry Moser, President, Reshoring Initiative
Upcoming Events
January 21 – Indiana University Manufacturing Policy Initiative Panel
Why Reshore 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. economy.
