ROCHESTER, NY—General Electric has decided to keep 90 manufacturing jobs at its assembly plant here. The conglomerate had been planning to shift those jobs to China by June 2018.
For the past several years, the Reshoring Initiative has been helping manufacturers reshore production or keep existing work here through total cost of ownership (TCO) analysis. However, calculating TCO is only part of the overall competitiveness equation.
In his August 2017 editorial, “Tariff Debate Pits Producers Against Consumers,” chief editor John Sprovieri clearly posed the dilemma of low-priced Chinese steel imports, which have severely impacted the U.S. steel industry.
KILDEER, IL—Plante Moran and the Reshoring Initiative are jointly conducting a national survey to provide insights into how much manufacturers offshore, what drives them to offshore, and what U.S. policy changes would motivate them to reshore.
HARRISBURG, PA—Americans say they love U.S.-made goods. They are less enthusiastic, however, about paying a premium for them. A recent Reuters/Ipsos poll found 70 percent of Americans think it is “very important” or “somewhat important” to buy U.S.-made products. Despite that sentiment, 37 percent said they would refuse to pay more for U.S.-made goods vs. imports. Twenty six percent said they would only pay up to 5 percent more to buy American, and 21 percent capped the premium at 10 percent.
For the first time in decades, more manufacturing jobs are returning to the United States than are going offshore. The reshoring trend is at record levels, and I need your help to drive more growth!
Use the Total Cost of Ownership Estimator (TCO) to make a strong case when selling against offshore competitors! Sixty percent of companies make sourcing decisions based on rudimentary metrics, such as wage rate, ex-works price or landed cost, often resulting in a 15 to 30 percent understatement of actual offshoring costs.
Kildeer, IL—For the first time in decades, more manufacturing jobs are returning to the United States than are going offshore, according to the Reshoring Initiative. New U.S. manufacturing jobs attributed to reshoring and foreign direct investment totaled 77,000 in 2016. That’s a 10 percent increase over 2015 and it exceeded the rate of offshoring by about 27,000 jobs.
In my December column, I discussed how total cost of ownership (TCO) can reveal the hidden costs of offshoring and determine the real profit and loss impact of reshoring and offshoring.
On the campaign trail, President Donald Trump promised to bolster U.S. manufacturing; slash the corporate tax rate; build a wall on our southern border to keep out illegal immigrants; and invest more than $1 trillion to upgrade the nation’s aging infrastructure.
