Friday, August 2, 2013

Reshoring Initiative July Newsletter

First Major Cell Phone Production Returns to the U.S.

Motorola Mobility, which is owned by Google, is opening a factory in Fort Worth, Texas. The company plans to manufacture its top-of-the-line Moto X cell phone at the facility, which was previously used to produce Nokia cell phones. Motorola will employ 2,000 workers at the Fort Worth factory. The company cites lean practice, proximity to customers, R & D and consumer preference for Made in U.S. as the main reasons for bringing manufacturing back to the U.S.

Consumers Prefer Made in USA Products

The Boston Consulting Group and other researchers recently reported that consumer preference for Made in USA products continues to increase. Here is a sampling of the results:
  • About two-thirds of U.S. consumers are willing to pay a premium for 10 key product categories that were tested—from baby food and appliances to electronics and apparel.
  • The premium consumers are willing to pay varies, ranging from about 10 percent to more than 60 percent in the categories tested.
  • In all of the 10 categories, at least 20 percent of U.S. consumers are willing to pay a premium of more than 10 percent.
  • Nearly 60 percent of U.S. consumers chose Made in USA products over less expensive Chinese goods at least once in the month before the survey.
As consumers increasingly put their preferences into action, retailers need to make it easy to find Made in USA products, and manufacturers need to use Total Cost of Ownership to understand how they can competitively offer a broad range of U.S. products.

"Voters See Manufacturing as the 'irreplaceable core of a strong economy'" – American Alliance of Manufacturing

"That 'Made in USA' Label May Be Worth More Than You Think" – The Boston Consulting Group

"Born in the USA OR Coming to America: Harris Poll Finds Buying American Still Valued in Increasingly Global Marketplace" – Harris Poll

Reshoring Initiative Meets Clinton Global Initiative (CGI)

The Reshoring Initiative was a member of the Manufacturing Group at the third annual meeting of CGI America, which took place June 13 - 14 in Chicago, IL. As part of the two-day meeting, several high-profile celebrities spoke, including President Bill Clinton, Hillary Rodham Clinton and Chelsea Clinton. As a participant in the Manufacturing Group, Harry Moser proposed finding one or more large companies to partner with the Reshoring Initiative. As partners, companies would actively use the Total Cost of Ownership (TCO) Estimator™ when making sourcing decisions about offshore vs. domestic. These companies would then provide a reference to help motivate other companies to do likewise.

Companies interested in understanding their offshore and domestic costs more accurately by becoming a partner are invited to e-mail

Support the Reshoring Initiative and Reshoring

There are multiple ways you can get involved and become part of the reshoring movement. Here are just a few ideas:
  • Use the TCO Estimator for sourcing decisions and selling against offshore competitors.
  • Invite the Reshoring Initiative to address your or your customers' industries at a speaking engagement or meeting.
  • Post a link to the Reshoring Initiative on your website.
  • Donate your time, talent or dollars to the Reshoring Initiative.

We need your support to make reshoring more than a trend. Contact us for more information on how you can help.

Upcoming 2013 Events

A complete list of upcoming Reshoring Initiative appearances can be found on the Upcoming Events page.

What's Coming Up

  • Updates to the Reshoring Initiative website
  • Improvements to the TCO Estimator
  • Inclusion of a reshoring chapter in AAM's upcoming book, ReMaking America
  • Completely renovated and improved Reshoring Library

When it comes to the manufacturing industry in North America, you can be part of the problem or part of the solution. The United States has contributed many of the world's greatest innovations and created long-standing wealth for generations. Now it is on the verge of a huge comeback. The Reshoring Initiative, its partners and supporters will be part of that comeback. Will you?

As always, thanks for your support.

Harry Moser

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