Monday, October 24, 2011

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 Idaho-based Buck Knives’ output. Today they produce 25 percent. Buck Knives wants to keep moving production from China to Post Falls, Idaho 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."

8 Comments:

At 10/24/2011 7:30 PM, Blogger Steamboat Lion said...

I think #3 is at least as interesting in terms of the move of the company from California to Oregon...

 
At 10/24/2011 7:58 PM, Blogger aorod said...

Lower energy prices would provide incentives for businesses and put more money in consumer pockets.

 
At 10/24/2011 9:18 PM, Blogger Don Culo said...

Thank you presidnt Obama for bringing jobs back to America !!!!

USA, USA, USA !!!!

 
At 10/24/2011 10:11 PM, Blogger Benjamin said...

The nerve of those Chinese! I hear not only do they want living wages, they even want to limit pollution!!!!

 
At 10/25/2011 5:22 AM, Blogger sethstorm said...

All of these people made mistakes in sending the work offshore in the first place.

The wisest thing to do would to permanently lock these jobs to the US, and be willing to hire/train the unemployed to do them.

Prevent the same mistake of offshoring from happening again.

 
At 10/25/2011 12:23 PM, Blogger Oscar Wildedog said...

This is my core business. After offshoring a dozen companies to Asia and South America the last 20 years, companies are calling me back to effectively "reverse" what I did for them. Part of this is because labor efficiencies have improved a great deal over that time, but also the uncertainties of foreign governments, foreign currency pegging, and a whole slew of other factors.

 
At 10/25/2011 8:46 PM, Blogger Spencer Weinstein said...

Post Falls is in IDAHO, not Oregon. The article clearly states Idaho. I live in Idaho. I know Buck Knives' story.

 
At 10/25/2011 8:57 PM, Blogger Mark J. Perry said...

Spencer: Yes, of course, I'm very sorry, it was my mistake, and I just corrected it.

Mark

 

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