62K lbs of Raw Meat Recalled Days Before Memorial Day Weekend
in Food Products, Made in USA, Recalls, USDAThe Made In America Store Reaches 9 Major Milestones in 2019
in American Made, Domestic Sourcing, Made in USAMade in America Mother’s Day Gifts | American Made List
in American Made, Consumer Products, Made in USAThe Ultimate Made in USA Christmas Gift List | Ideas for the Entire Family… and Pets, Too!
in American Made, Consumer Products, Made in USALiberty Tabletop Sets an American Made Table for the Holidays
in American Made, Consumer Products, KITCHEN AND ACCESSORIES, Made in USASherrill Manufacturing is the only company left in the United States making American Made flatware. They pride themselves on producing some of the best high-quality Made in USA flatware at different price points making it easy to fit all budgets.
Americans Willing to Pay More For Products With a Made In USA Label
in American Made, Domestic Sourcing, Economy, Jobs, Made in USA, ManufacturingMeet the NEW Made in Michigan Ford Truck
in American Made, Automotive, Made in USA, ManufacturingA V8-Powered, Manual, Lifted, Jeep-Slaying 2020 Ford Truck! Read more
Why is The U.S. Flag Worn “Backward” on The Uniform?
in Made in USA, MilitaryArmy Regulation 670-1, Wear and Appearance of Army Uniforms and Insignia, is the governing authority for the wear of Army uniforms. Paragraph 28-18 governs the wear of the United States Flag on Army Uniforms. Read more
The Power of Buying Made in America: A Bigger Impact Than You Realize
in American Made, Education, Made in USA, Not Made in USA, Slave Labor, SustainabilityIn today’s economy, many consumers are faced with endless choices about where their products come from. But behind every “Made in USA” label lies a much larger story — one that touches American jobs, national security, small businesses, and the strength of our supply chain. Supporting American manufacturing and buying American-made products isn’t just a patriotic gesture; it’s a decision with powerful ripple effects for workers, communities, and the nation as a whole.
As global supply chain disruptions, skills gaps, and trade imbalances continue to dominate the headlines, consumers, policymakers, manufacturers, and small business owners are reevaluating the true cost of offshoring and the significant benefits of reshoring and insourcing. Now more than ever, buying Made in America can fuel sustainable economic growth and restore our country’s manufacturing backbone. Read more
This Day, Some Well-Earned Respect For Factory Workers
in Economy, Jobs, Made in USA, Manufacturing, Middles Class, Small BusinessWill The Skills Gap Impact Advanced Manufacturing In Small Town USA?
in Economy, Education, Farmers, Innovation, Jobs, Made in USA, Manufacturing, Skills GapMost of us, regardless of our age, have heard the song popularized by Sophie Tucker and Eddie Cantor after World War I: “How Ya Gonna Keep ‘Em Down on the Farm (After They’ve Seen Paree?).” Read more
President Trump Invites The Made in America Movement to the White House
in Government, Made in USA, Manufacturing, News, Policy Makers, Politics, Public PolicyThe First National Reshoring Award Scheduled For This Year
in Domestic Sourcing, Economy, Jobs, Made in USA, Manufacturing, ReshoringThe Reshoring Initiative (Kildeer, IL) and the Precision Metalforming Association (PMA; Independence, OH) invite companies that have successfully reshored parts or tooling made primarily by metal forming, fabricating or machining to apply for the first National Reshoring Award. There will be one award for buyers and one for suppliers. Read more
Flag Day Trivia, Etiquette and Quotes
in American History, American Made, Made in USAToday is Flag Day. The national observance commemorates the adoption by Congress of the Stars and Stripes as the flag of the United States on June 14, 1777, according to the National Flag Day Foundation. Read more
How The U.S. Could Bring Back Manufacturing American Jobs
in Economy, Jobs, Made in USA, Manufacturing, Reshoring, Skills GapMany companies that offshored manufacturing American jobs didn’t really do the math.
For decades, U.S. companies have been chasing cheap labor offshore and then importing products to sell in the U.S. market.
Now, a broader focus on Total Cost of Ownership (TCO quantifies all relevant costs, risks, and strategic factors) and advanced manufacturing together have the potential to end the manufacturing stagnation of the past 30 years and create millions of manufacturing jobs in the U.S.
Over the past 20 years, the boom in offshoring drove our goods trade deficit up by about $640 billion a year, costing us three to four million manufacturing American jobs.
The most direct way to reduce the trade deficit, is to substitute domestic production for imports, i.e. via reshoring and foreign direct investment (FDI) in the U.S. The result of eliminating the trade deficit would be a rapidly growing manufacturing workforce for the first time in 40 years, a rise in average wages and a 25% to 30% increase in manufacturing output and American jobs.
Related Article: Read about The Made in America Roundtable at the White House
Many companies that offshored manufacturing didn’t really do the math. An Archstone study revealed that 60% of offshoring decisions used only rudimentary cost calculations, typically just price or labor costs and ignored other costs such as freight, duty, carrying the cost of inventory, delivery and impact on innovation. Most of the true risks and cost of offshoring were being ignored.
Now is a good time to re-evaluate the cost of domestic vs. offshore production.
Chinese wages have been rising by about 15% a year since 2000. As a result, the Chinese labor cost in dollars per unit of output is now about four times what it was in 2000. We estimate that about 25% of what is now offshored would come back if companies quantified the total cost. These products would generally have characteristics such as high freight cost vs. labor cost, frequent design changes, volatility in demand, intellectual property risk, and regulatory and compliance requirements.
For these most-reshorable products, such as large appliances with high freight costs, medical devices requiring high technology and quality standards, and plastic products that are getting cheaper thanks to declining natural gas and oil prices, the offshore manufacturing cost gap vs. the U.S. is now smaller than the offshoring “hidden costs” mentioned earlier.
[clickToTweet tweet=”About 25% of what is now offshored would come back if companies quantified total cost. | #reshore ” quote=”About 25% of what is now offshored would come back if companies quantified the total cost. “]
These costs are readily quantified using the Reshoring Initiative’s free online TCO Estimator. Since our trade deficit represents four million manufacturing American jobs, the returnable 25% is equal to 1 million manufacturing American jobs.
In addition to the 25% reshorable if companies would just do the math correctly, another 25% of the offshored manufacturing jobs could come back if America can become just 15% more competitive via sustainable strategies like advanced manufacturing using robots and other forms of automation, lower corporate tax rates, and regulations and a lower U.S. dollar. In total, adding approximately two million manufacturing jobs over the next 10 to 15 years is feasible. A 3.6 multiplier effect, as per the Manufacturers Alliance for Productivity and Innovation, would take the total to a gain of about 7 million jobs across the economy.
Advanced manufacturing helps level the global playing field for the U.S. First, the number of labor hours per unit of output is reduced. Second, the gap in the labor cost per hour shrinks. For example, a highly skilled robot engineer in China makes a third to a half of American pay and not the small fraction (5% or 10%) of the low-skilled Chinese workers.
In addition, acquiring capital equipment is more expensive in China because of China’s value-added tax of 13% or 17% on imports. Fortunately, the U.S. can have automation and more jobs as we reshore and draw down the four million jobs lost to offshoring.
The jobs won’t be the same, but we see a huge potential for economic growth.
The U.S. will need to fill approximately 3.5 million manufacturing American jobs over the next 10 years, according to a recent study from Deloitte and The Manufacturing Institute. Given our low rate of training, they estimate there will be a shortage of 2 million skilled workers. This shortage is one of the largest barriers to reshoring. Fortunately, high visibility for reshoring will help increase the rate of recruitment, as students increasingly understand that manufacturing is, once again, a solid career choice.
[clickToTweet tweet=”Good news is the bleeding of #manufacturing #jobs to #offshore has stopped. #reshore #mfg” quote=”The good news is that the bleeding of manufacturing jobs to offshore has stopped.”]
According to Reshoring Initiative data, the availability of a skilled workforce and training are essential for bringing jobs back, ranking second among the reasons given by U.S. companies moving jobs back to the U.S. and foreign companies creating manufacturing facilities here. When companies reshored and failed to find the needed workforce, the transition was painful. The availability of a sufficient quality and quantity of skilled workers is often the No. 1 criterion in selecting the location for a factory and a key issue for retention and expansion.
The good news is that the bleeding of manufacturing jobs to offshore has stopped. Reshoring, including FDI, balanced offshoring in 2015, as it did in 2014. In comparison, in 2000-2003 the United States lost a net 200,000 or so manufacturing jobs a year to offshoring.
The Road Home
There are many alternative paths that might lead to a dramatic reduction in the trade deficit: stronger skilled workforce, lower corporate taxes, and regulations, border adjustment tax, lower health-care costs, lower U.S. dollar, etc.
The Reshoring Initiative is currently developing a Competitiveness Toolkit. Our objective is to offer President Trump and Congress their choice of a mix of paths that will achieve the desired reduction in the trade deficit while minimizing domestic and international resistance and unintended consequences such as inflation.
We have a long, difficult journey ahead; we need to pick the best paths.
Harry Moser is the founder and president of the Reshoring Initiative and worked for several decades in manufacturing. Sandy Montalbano is a consultant to the Reshoring Initiative.
Did you know that buying Made in USA has a bigger impact than you know? Click here for the top 4 reasons.
Learn how you can become a MAM brand ambassador and help support the Made in America Movement.
An Army General on Why American-Made Steel is Vital to National Security
in Made in USA, Manufacturing, MilitaryBrigadier Gen. John Adams served in the U.S. Army for over three decades before retiring in 2007. Now Adams is dedicated to fighting for the U.S. defense industrial base, an essential part of America’s national security. Read more
This Factory is Where Trump May Draw The Line on Trade
in Domestic Sourcing, Economy, Jobs, Made in USA, Military, Public PolicyWhen Bill Hughes went to fight in Iraq in 2003, members of his Army unit lined their vehicles with scrap metal, sandbags and bulletproof vests to protect themselves from roadside bombs. By the time his younger brother Ryan Young was in Iraq in 2008, the vehicles were made of a high-purity aluminum alloy that was much more effective at absorbing the blast. Read more
Don’t Make These 5 Mistakes When Buying Luxury Bed Sheets
in Domestic Sourcing, HOME FURNISHINGS & ACCESSORIES, Made in USA, ManufacturingWe spend as much as one-third of our lives asleep. It only makes sense to invest in a good night’s rest by finding the perfect set of sheets, so we asked Jimmy and Stephanie MacDonald, founders of Redondo Beach-based Authenticity 50, for some tips. Read more
Walmart Open Call for Made in USA Products
in American Made, Consumer Products, Domestic Sourcing, Economy, Jobs, Made in USA, Manufacturing, Reshoring, WalmartWhat: Walmart Open Call for US Products
Where: Bentonville, AR
When: June 28, 2017
Who: Companies that want to sell U.S. products to Walmart Read more
FTC Approves Final Consents Settling Charges On Misleading Made in USA Claims
in FTC, Made in USA, Marketing Your BrandFollowing public comment periods in two separate cases, the FTC (Federal Trade Commission) has approved final consent orders settling charges that iSpring Water Systems, LLC, a Georgia-based distributor of water filtration systems, and Block Division, Inc., a Texas-based distributor of pulley block systems, made misleading Made-in-the-USA claims. Read more
Ford Plans Big Investments in Michigan Plants
in Automotive, Economy, Jobs, Made in USA, ManufacturingFord Motor Co. will announce investments in three of its Michigan manufacturing plants Tuesday morning, according to three sources familiar with the automaker’s plans. Read more
Artisan Wild Crafted Natural Beauty Products From This Land of Aloha
in Consumer Products, Domestic Sourcing, Made in USA, Manufacturing, Small BusinessExperience the authentic spirit of the Hawaiian Islands where all of nature is revered. Experience the healing benefits from the farthest point in the United States where pristine waters surround lush islands formed of rich volcanic soil. Read more
Play-Doh Will Be Made in The USA For The First Time in a Decade
in American Made, Domestic Sourcing, Economy, Jobs, Made in USA, Manufacturing, Reshoring, ToysPlay-Doh will soon be squeezed out of a factory in the U.S. again, as Hasbro Inc. brings manufacturing of the popular moldable clay back to America for the first time in years. Read more
The Case for Reshoring: Bringing Quality Manufacturing Jobs to USA
in Domestic Sourcing, Economy, Jobs, Made in USA, MANUFACTURERS, Manufacturing, Manufacturing & Sourcing, Production, ReshoringGood news for U.S. manufacturers: stateside production and employment opportunities are on the rise.
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Small Businesses Uneasy Over Border-Adjustment Tax Plan
in American Made, Domestic Sourcing, Economy, Made in USA, Manufacturing, ReshoringA proposed overhaul of the U.S. tax code favored by Republicans in the House of Representatives is drawing fire from small-business owners who sell everything from toys to materials used in kitchen cabinets.
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The Power of a Small Factory: Emerging Weapons in Fight Against Poverty
in Domestic Sourcing, Factory Closings, Jobs, Made in USA, Middles ClassBALTIMORE — James Branch’s life seemed destined to follow a familiar arc in the streets that surround the Marlin Steel factory, where he bends metal from sunrise until near dark. Read more
Carrier Plant Will Keep Jobs in U.S.A
in Domestic Sourcing, Economy, Jobs, Made in USA, Manufacturing, PoliticsFrom the earliest days of his campaign, Donald J. Trump made keeping manufacturing jobs in the United States his signature economic issue, and the decision by Carrier, the big air-conditioner company, to move over 2,000 of them from Indiana to Mexico was a tailor-made talking point for him on the stump. Read more
How American-Made Brands Are Dealing With Domestic Dead Ends
in American Made, Apparel, Consumer Products, Made in USA, ManufacturingBrands and retailers who proudly declare they’re “made in the USA” have serious challenges brimming beneath their patriotic polish. Read more
American Made: What is it & Why It Matters
in American Made, Made in USA, Manufacturing, Manufacturing & SourcingHistorically there has been a lot of hype around the American-made topic, but there is a heightened awareness in recent years, which has drawn more attention to this subject now more than ever. This is primarily due to reshoring by major manufacturers, the US Government with SelectUSA and STEM programs, and all of the issues we face with counterfeiting and sub-par products.
Almost every day, I find an article or a label that says, “Made in USA” or “American made.” Products I see with the Made in USA label range anywhere from batteries, hand tools, and hardware, to outdoor furniture and household appliances, to groceries and dog food — not to mention the Made in USA mandate for many government-driven programs. This is similar to every time I communicate with my wife and kids because whenever there is a lot of talk, there are also a lot of misunderstandings, misstatements, and misconceptions.
Related: Buying American Made: Ways To Express Your Values with Your Pocket Book
What exactly is American-made, and why does it matter?
If we want to get technical, American-made can mean many things. Is it South American-made? North American-made? Is it made in Mexico? What is it?
What exactly is Made in USA?
According to the Federal Trade Commission, a product is made in the USA if it is “all or virtually all” made in the USA. What does “all or virtually all” mean? That phrase “means that all significant parts and processing that go into the product must be of US origin. That is, the product should contain no — or negligible — foreign content.” My interpretation is that, most importantly, you be honest. Say so if it is made in the USA with domestic and imported components. Say so if it is manufactured in the USA and packaged in Mexico. Say so if it is designed and assembled in the USA but manufactured in China.
Now on to the heart of the subject, why does it matter? Why should I care? I want the best price … It matters more than we accept.
RELATED: If you are a manufacturer, a service provider, a producer of goods, or if you employ American citizens and are creating jobs, find out how a MAM partnership will help you
Why it matters
- The manufacturing powerhouse After WWII, the US was almost 50% of the global economy, bringing manufacturing to its peak. We produced 80% of the world’s automobiles during America’s manufacturing peak. Almost all of the products we used were manufactured in the US. We manufactured steel, textiles, furniture, planes, appliances, and shoes, to name a few. Well, since 2001, more than 56,000 factories have left the US. Now, I am not suggesting every single product we use needs to be manufactured here in the US, but we need to be and remain the world’s manufacturing powerhouse.
- Manufacturing employs people — At its height, US manufacturing employed more than 19 million people. Over the last couple of decades, along with losing our factories, we have lost our jobs. According to the National Association of Manufacturers (NAM) and the Bureau of Labor Statistics (BLS), manufacturing in the US currently employs just over 12 million people. Although losing more than 7 million jobs is alarming, what is more alarming is that, unlike the service sector, for every manufacturing job, there are approximately 1.6 jobs created. For example, in The American-Made Movie, we see the Louisville Slugger, an American-made product supporting a great American tradition. To create one baseball bat, there are loggers to cut trees, truck drivers to deliver them to the mill, mill workers to create billets, truck drivers to deliver them to the factory to manufacture the bats, marketers to market them, and retailers to sell them. Manufacturing employs people.
- Manufacturing keeps the US competitive — According to the NAM review of National Science Foundation reports, manufacturers in the US perform two-thirds of all private sector R&D in the nation, driving more innovation than any other sector. Our engineers, techs, and science professionals keep us abreast of technological advancements and developments.
What are your thoughts? Does it matter to you? Does it matter enough to consider a change? Let us know in the comments below.
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