Tuesday, October 28, 2014

Reshoring Initiative October 2014 Newsletter

News Recap

Another Great Year at IMTS 2014

The high turnout of 114,000 attendees and strong ordering were consistent with the continuous growth of the U.S. manufacturing sector – due, in part, to reshoring. See data about how U.S. manufacturing output is up by 30% since the recession and generating a greater rate of innovation, as well as read about trends from the White House, Bank of America and other sources here. Also, we appreciated the opportunity to speak in the Festo, Gardner Business Publications, GF Machining Solutions and Parlec booths.

Walmart Manufacturing Summit Jumpstarts Further Large Scale Reshoring

The Reshoring Initiative was present to help companies that are reshoring and selling to Walmart. We met over a hundred companies and economic development organizations (EDOs). We help the companies with TCO and motivate the EDOs to implement our Reshoring Economic Development plan. See highlights, full Summit presentation and reshored companies with current job count on our Walmart Reshoring Update blog. We project Walmart’s $50 billion/year increase in U.S. product purchases by 2022 will add 300,000 U.S. manufacturing jobs.

Glenn Marshall (left) of AME and Harry Moser (right) presenting an AME award to Mark Espinoza (center) of Walmart Corporate Affairs for holding the Walmart 2014 Manufacturing Summit.

At the Walmart Summit, IDEAL Fastener Corporation came on board as our newest sponsor. IDEAL is the second largest zipper manufacturer in the world. Originally formed in New York, New York, this global company has reshored one factory to North Carolina to serve the US market. Thanks IDEAL!

In the last two months, four large national companies have approached the Reshoring Initiative for advice on whether and how to reshore. Walmart's search for U.S. manufactured products drove most of these. Other companies are encouraged to call for help as well!

Other Reshoring Initiative Activities

- Documentaries will feature the Reshoring Initiative and air in October on the French Public Television network and January on BBC World.

Interviews with French Public TV: visit to Industrial Mold Group, a leading injection mold maker in Rockford, IL (left); visit to Norton's, a Barrington, IL store selling only made in U.S. products (right)

- Other interviews included Bank of America; Plante & Moran (the auditing and consulting firm); The Wall Street Journal, L'Usine Novelle (French equivalent of Business Week); NASA; and WATR1320 radio in CT.

- Quoted by Steve Ezell of ITIF at the U.S. Senate Finance Committee hearing on “The Role of Trade and Technology in 21st Century Manufacturing”

- Spoke at a U.S. Senate Democratic Policy and Communications Center press conference on a reshoring bill: Senate 2569

Articles on Reshoring

The Reshoring Initiative published or was quoted in over 20 articles since the last newsletter. See the complete list in News. 212 new articles were added to the Reshoring Library.

Three graduate theses on reshoring were posted on Reshorenow.org:
- The Impact of Government Policies on Reshoring Efforts - Wael Sedky
- The Effect of Reshoring on Wage Inequality In the United States: A theoretical assessment - Nikie Knoben
- Reshoring - Ferran Cabratosa

Also in the News

- ACE (Access Costs Everywhere) Tool at the Department of Commerce now includes the Cost Differential Frontier (CDF), a new tool from Prof. de Treville of the University of Lausanne. CDF provides a simple means for estimating the impact of offshoring on excess inventory, unmet demand and obsolescence costs. For some products these costs, alone, can amount to 20% of the ex-works price for a product. The Reshoring Initiative is cooperating on the launch of CDF and will incorporate the output of the tool into the Total Cost of Ownership Estimator™.

Recently Reported Case Studies

Company Product
Eagle Tool US, LLC Cable installer drill bits
Universal Plastics - Kept from Offshoring - Exports to China Plastics and Rubber Products
Ticket Management System Lottery Ticket Scanner App
U.S. Ski Pole Company Ski Poles
Conveyorized Solutions Conveyors 

Have a story to tell? Submit your reshoring success story at reshorenow.org/resources.

Reshoring Resources

As always, thanks for your support.

Harry MoserReshoring Initiative (847) 726-2975

Millar Kelley – Newsletter Editor and Research Analyst

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A special thanks to the Reshoring Initiative Sponsors

All reshoring successes depend on actions. Please consider posting a link to the Reshoring Initiative on your website, and/or donating your time, talent or dollars. You can download our logo at the website. Contact us for more information on how you can help or how the Initiative can help you.


Wednesday, October 15, 2014

Survey Cites American-Made as Important Buying Factor

It is no secret that the last decade has brought a surge in demand for products made in the USA. But it was only recently we realized how much the “Buy American” movement has evolved.

In a recent survey conducted by American Certified, 1500 people across the nation were asked the question, “Other than price/ quality, what factor is most important to you when purchasing a product?”

Of the 1500 people surveyed, an overwhelming majority of respondents (51.9%) chose “Made in the USA”. The second most important factor was “Locally-made,” with 17% of participants choosing this option. The other choices included in this survey (listed in decreasing order of importance to participants) were Eco-Friendly, Union-made, Other, Veteran-owned, and Woman or Minority-owned businesses.

Friday, October 10, 2014

Walmart Reshoring Update

Walmart’s role as a driving force is becoming clear, creating a focused business opportunity for many U.S. manufacturers: consumer product companies directly and their industrial suppliers indirectly. Walmart’s reshoring commitment dwarfs that of any other U.S. company. In the 10th year of its program Walmart will be buying $50 billion more U.S. products per year, generating, by our estimate, about 300,000 additional manufacturing jobs (by Boston Consulting Group’s estimate,1,000,000 total jobs). So far, 26 companies have been officially announced in the program, generating 3654 known direct jobs. See chart below for details. 

Walmart U.S. supplier
Jobs added

Injection-molded footwear in Hazlehurst, GA
Louis Hornick & Company
Window covering and home textiles in a new facility in Allendale County, SC

Tuesday, October 7, 2014

Can Government Incentives Drive Reshoring? Graduate Wael Sedky Asks the Question

The Reshoring Initiative is pleased to publish an MBA Dissertation from Wael Sedky of the University of Wales, The Impact of Government Policies on Reshoring Efforts. Mr. Sedky's research surveys companies to determine what the driving factors behind their reshoring efforts are, and to determine whether or not government policies have or could have a strong role in influencing supply chain decisions.

While Mr. Sedky finds that current government policies do not have a strong influence on current reshoring efforts, he points out several policies -- such as tax credits and cuts, worker training and retention tax incentive programs -- that governments could enact to further encourage reshoring.

The Reshoring Initiative is pleased to publish the paper on our website, here.

Reshoring may reduce wage inequality, suggests research by Nikie Knoben

The Reshoring Initiative is pleased to publish Radboud University Nijmegen (the Netherlands) masters' candidate Nikie Knoben's thesis, THE EFFECT OF RESHORING ON WAGE INEQUALITY IN THE UNITED STATES: A theoretical assessment.

Ms. Knoben's paper offers a comparative investigation of three theoretical models to assess whether the reshoring of production and jobs will bring a decrease in the wage gap. She looks at globalization as a driver of wage inequality in this country, and speculates on how the reversal of this trend could, in turn, reduce wage inequality. Her models depict mixed results on wage from reshoring's impact, but in general she concludes that it is possible for reshoring to decrease the wage gap.

Read the full thesis here.