Reshoring: Manufacturing is Coming Back to U.S.

Pirate Smile

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Mon Oct-24-11 08:14 PM
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Reshoring: Manufacturing is Coming Back to U.S.

Edited on Mon Oct-24-11 08:25 PM by Pirate Smile

Reshoring: Manufacturing is Coming Back to U.S.

Three examples:

1. "Globalization has come full circle at Otis Elevator. The U.S. manufacturer, whose elevators zip up and down structures as diverse as the Empire State Building and the Eiffel Tower, is moving production from Nogales, Mexico, to a new plant in South Carolina. More startling: Otis says the move will save it money."

2. "After having their products manufactured in China the past seven years, The Outdoor GreatRoom Company is bringing production back home to Minnesota."

3. "Not long ago, overseas plants produced half of Oregon-based Buck Knives’ output. Today they produce 25 percent. Buck Knives wants to keep moving production from China to Post Falls, Oregon over the next few years, company chairman Chuck Buck said. “I want to get out of China as quickly as I can,” he said.

Buck Knives is not the only Idaho company “reshoring” — the opposite of offshoring, and the buzz term for bringing jobs from abroad back to America. Ende Machinery and Foundry, owned by Ed Endebrock and his daughter Sue Edwards,has just started to make castings for a plant Endebrock owns in Lewiston that makes hydraulic pumps for trucks and other uses. He had been outsourcing that work to China."

http://mjperry.blogspot.com/2011/10/reshoring-examples-manufacturing-comes.html

edit to add - reading this guys blog - says he is a Professor of Economics and Blogger - had another example of reshoring:

Reshoring Example: Houston-Based Farouk Systems

From The Financial Times:

"Farouk Shami, chairman and main owner of Houston-based Farouk Systems, made an unorthodox choice when he decided where to expand production of his professional hairdressing equipment. Rather than adding to his existing workforce in Asia, Mr. Shami expanded in Texas.
More of his products now carry the “made in America” label after the decision four years ago to cut back on the work he was giving to subcontractors, based mainly in China and South Korea, in favor of expanding local production.

As a result his company – which supplies professional hairdressers with high-tech dryers, hair curlers and other specialized equipment – has added 400 jobs to its Texas-based workforce, which now totals 2,000.
Production costs are only slightly higher in the U.S. than in China, he says, because the workers are more efficient. “I may need to employ only 15 people to do a job that would require 70 in a Chinese factory,” said Mr. Shami.

This year 80% of his company’s production is being done in the U.S., compared with 40 per cent in 2007. His sales have risen by about 20% since the decision to expand the domestic operation."

http://mjperry.blogspot.com/2011/10/reshoring-example-houston-based-farouk.html

But from the comments:

>>> “I may need to employ only 15 people to do a job that would require 70 in a Chinese factory,” said Mr. Shami.

Probably robotics, too. A fully modern factory that uses machines more than human power.