News from around the web this last week.
News from around the web this last week.
“U.S. manufacturing resurgent, advocate says” - Buffalo News – 04.13.13
“Evaluating US Manufacturing Sector” – Epoch Times – 04.12.13
“American Manufacturing: Growing–and Changing for the Better” – msnbc.com – 04.11.13
“The American Manufacturing Renaissance Has Gone Mainstream” - Business Insider – 04.11.13
“U.S. manufacturing set for a comeback, says analyst” - The Daily Citizen – 04.11.13
“The Case for Making Small U.S. Manufacturers a Priority” - Bloomberg Business Week – 04.09.13
“Myths of post-industrial America” - Washington Post – 04.07.13
News from around the web this last week.
“Survey: US manufacturing expands more slowly in March; factory employment grows at faster pace” – Daily American – 04.01.13
“US firms ‘reshore’ manufacturing as costs rise in China, India” – First Post – 03.29.13
“Is the U.S. Manufacturing Renaissance Real?” - TIME – 03.28.13
“Maker’s Row and the Future of American Manufacturing” – Mashable – 03.12.13
“Pumping Muscle into U.S. Manufacturing” - Forbes – 03.06.13
News from around the web this last week.
“Made in the U.S.A.: An all-American couple, business” – Concord Monitor – 03.24.13
“The idea of “buying American” has spanned multiple industries…” - nwi.com – 03.23.13
“Made in the USA: Which All-American toys are still All-American?” – Yahoo.com – 03.22.13
“American Built, Building America” - onlinetMD.com – 03.21.13
“First Person: I’m Willing to Pay More for American Made Products” - Yahoo.com – 03.08.13
“Made in the USA: More Consumers Buying American” - CNBC.com – 03.06.13
Watch Is Globalization Wiping Out the American Surfboard Industry? on PBS. See more from PBS NewsHour.
“Economic correspondent Paul Solman reports on an American-born product hit hard by globalization: the surfboard. In Southern California, U.S.-based manufacturers fear they will soon be wiped out by competing, foreign companies due to discrepancies in labor costs and duty taxes.”
Via PBS.org
When you think of a factory worker, what sort of image pops in your mind? I know in my mind I picture two things: first, the old 1800s images of men and women standing at a factory assembly line putting things together; and second the sorts of things we see on ‘How it’s Made’ where people are standing watching things go by that have been made by the completely automated machines. Either image conjures the stereotypical ‘blue collar’ worker, right?
What if we thought differently about manufacturing? What if we, like manufacturers in North Carolina, think of factory workers as “knowledge workers?” There’s something to this. Tipper Tie, a shop that makes food service equipment, decided that workers wouldn’t be treated like ‘assembly-line automatons’ anymore. But rather, their employees would be given the authority to “call the shots and make decisions” and at company meetings are even able to “shoot down the boss’ ideas.” What a novel concept! Instead of telling an employee what to do and having them do it until further instructions are given, they have a say in their job’s goals and how to go about doing their job. This concept may not be so novel to ‘white collar’ jobs, but in the manufacturing industry, on the factory floor, this is pretty groundbreaking.
Reinventing the manufacturing industry into “a thinking person’s career” is what Tipper Tie sees as North Carolina’s manufacturing future. Since most of the manufacturing jobs have moved overseas to non-skilled workers paid low wages, and other sorts of manufacturing jobs have been turned over to automation, factories in the US can no longer compete for those manufacturing jobs. Turning what manufacturing is left in the US to “an economy of knowledge workers” is the way of the future… at least the future of North Carolina.
North Carolina has spent about $37.5 million training manufacturing workers and subsidizing their pay since 2008 through a program called Service Thread. They do this because the economic benefit (taxes received) benefits the state many times over. At Tipper Tie, workers that have benefitted from this program have been instrumental in making changes to their employers and the increasing the productivity and morale of the employees.
Let’s spread the word! Kudos to North Carolina and what their Service Thread program is doing. If the other 49 states would only hop on board! Where would manufacturing be then?
*Quotes in this article are from a column published in News & Observer, February 9, 2013.
50 BUILT is celebrating 6 months worth of original daily content related to ‘Made in the USA.’
To all our loyal 50 BUILT readers, we can’t thank you enough for all your support and visits to the site. We’re busy collecting new material and content for the new year. There are some great interviews in the works, and exciting collaborations in the incubator. Keep sending us any info or input you may have for 50 BUILT, we love to hear from our readers.
Have a great rest of your 2012, and we will be back with more in 2013!
Much appreciated,
Brian
So Tuesdays are usually for Factory Tours, but today is an exception. I wanted to spotlight “Made in the USA: the 30 Day Journey.”
It is exactly what it sounds like. An excerpt from their site: “Made in the USA Films, LLC presents a full-length documentary that will explore the rise and fall of USA made products. Josh Miller will set out on a journey in which he will live off of USA made products for 30 days. Can he do it!? During Josh’s journey he will talk with locals to find out if “Made in the USA” really means anything anymore. If not, what does that mean for the future of our country? Come find out when you join us on the “Made in the USA: The 30 Day Journey.”
Above is their official trailer, full length documentary is in production. You can view more on their site or donate to the film.
News from around the web this last week:
“Move Over, Michigan, China Is The World’s Next Rust Belt” – Forbes – 12.09.12
“Apple to manufacture American-made Mac next year” – MSNBC.com – 12.09.12
“Not Just Patriotic, U.S. Manufacturing May Be Smart” – NPR – 12.08.12
“Foxconn Plans American Expansion as Clients Seek Made in U.S.A.” - Bloomberg Business Week – 12.06.12
“U.S. manufacturing drops to 3-year low in November” - Examiner.com – 12.05.12
News from around the web this last week:
“At Work: Manufacturing jobs returning to U.S.” – FloridaToday.com – 11.25.12
“Port Jervis glass factory celebrates 100 years”- Record Online – 11.24.12
“Mori Seiki Opens First U.S. Manufacturing Operation” – American Machinist – 11.23.12
“Liberty Bottleworks wins 2013 American Made Outdoor Gear Award” - HeraldOnline.com – 11.23.12
“Consumers Love the Made in the U.S.A. Brand” - Daily Beast – 11.20.12
News from around the web this last week:
“Amazon.com Asks The Made In America Store to Join Their E-Commerce Site” – Equities.com – 11.19.12
“The Revival of American Manufacturing: An Update” - Business Insider – 11.15.12
“Year-To-Date U.S. Manufacturing Technology Orders Up” - Manufacturing.net – 11.13.12
News from around the web this last week:
“Apple’s Foxconn Might Manufacture In The US.” - Forbes – 11.09.12
“Invest in Advanced Manufacturing – Building the Right Skills” – Huffington Post – 11.09.12
“Ford Hires 5,200 in Plants, Pushes Utilitization to 114%” – Bloomberg – 11.08.12
“Foxconn Looks to U.S. to Open Manufacturing Plants, Report Says” - Cnet.com – 11.08.12
“Panel: Chinese Imports Hurt U.S. Solar Industry” - Manufacturing.net – 11.07.12
News from around the web this last week:
“State manufacturing stalls” - jconline.com – 11.04.12
“US Factory Orders Jump 4.8 percent in September but Business Investment Remains Weak”- Fox News – 11.02.12
“Why Advanced Manufacturers Need Tax Reform” – Politico – 11.02.12
“US Manufacturing Expands at Faster Pace in October” – Bloomberg Business Weekly – 11.01.12
News from around the web this last week:
“Honda’s Ohio plant changed competitive landscape in America” – Detroit Free Press – 10.28.12
“Construction Under Way at Mersen Manufacturing Facility in Bay County” - Midland Daily News – 10.28.12
“Skilled Labor Shortage Hobbles Illinois Manufacturers” – Crain’s Chicago Business – 10.27.12
“Kansas Democratic Leaders Propose ‘Buy American’ Law” – Kansas City Star – 10.26.12
“Made in Middle America – A Manufacturing Resurgence Happening Here” – Huffington Post – 10.24.12
“U.S. Manufacturing Needs A Brand Makeover” – Manufacturing.net – 10.22.12
“American Manufacturing Re-Energized” – Huff Post Los Angeles – 10.19.12
News from around the web this last week:
“U.S. Could See Shortage of High-Skilled manufacturing Workers, Report Says” – Detroit Free Press – 10.15.12
“U.S. manufacturing effort targets military veterans” - Dayton Business Journal – 10.15.12
“TD Economics Report Heralds Revival of American Manufacturing Sector Through Reduced Offshoring of Jobs” - The Sacramento Bee – 10.15.12
“Manufacturing bouncing back as U.S., Colorado companies Reshore Jobs” - Denver Post – 10.14.12
“Robot options offer manufacturers chance to keep jobs in U.S” - TribLive.com – 10.12.12
“U.S. Hits Chinese Solar Manufacturers With Higher Tariffs” - Forbes – 10.10.12
News from around the web this last week:
“Plans Reflect Shift in Global Manufacturing, Its Costs” - columbian.com – 10.07.12
“In role reversal, Chinese PC firm to manufacture in U.S.” - cnet.com – 10.06.12
“Study: Manufacturing returning to U.S.” - upi.com – 10.06.12
“Wisconsin companies’ new task: Manufacturing skilled workers” - jsonline.com – 10.06.12
“Manufacturers hiring, but job growth is slowing” – usatoday.com – 10.05.12
“Manufacturing in U.S. Expands Unexpectedly as Orders Rise” – businessweek.com – 10.01.12
This Friday, October 5 2012, is the official Manufacturing Day.
Its goal is to raise awareness and to open the doors of factories and plants to the public.
From the MFGDAY.com website:
“Manufacturing Day has been designed to expand knowledge about and improve general public perception of manufacturing careers and manufacturing’s value to the U.S. economy. Manufacturing Day is for students, parents, educators, media, customers, suppliers and the community at large. Visitors will learn about real career opportunities, training, and resources. In addition, manufacturers will learn about business improvement resources and services delivered through manufacturing extension partnerships.”
For more info, visit mfgday.com
News from around the web this last week:
“U.S. Job Growth, Manufacturing Grow Soft” - marketwatch.com – 09.30.12
“Oil Declines From One-Week High as China Manufacturing Weakens” – Businessweek – 09.30.12
“Ohio’s Manufacturing Gains Likely to Continue” – Loan Safe – 09.28.12
“Can Robots Bring Manufacturing Jobs Back to the U.S.?” - Time Business – 09.27.12
“Weak Orders Point to Sharp Slowdown in Manufacturing” - Reuters – 09.27.12
“Manufacturing Expo Focuses on Skilled Worker Shortage” - Green Bay Press Gazette – 09.26.12
Hello to all 50 BUILT visitors, old & new. In an effort to keep providing the most relevant information, and based on feedback from our readers, we have made some slight changes in the weekly format moving forward.
Monday’s usual Industry Spotlight will be merged with our weekly Product Reviews and Interviews. In an effort to maintain a human centered resource, we are striving to make every possible connection with the companies we feature. It will also result in more original content. In the Industry Spotlight Monday slot, we will create a WEEKLY NEWS post in our news section that provides links from around the web on the most recent Manufacturing News.
Weekly Wallpapers will now be Monthly Wallpapers.
50 BUILT is coming up on having almost 5 months worth of daily features and content. It is an organic process and we will do whatever we can to help in the pursuit of supporting American manufacturing. Please, always feel free to contact 50 BUILT and let us know what information and content you would like to see.
Thank you!
There have been several news features related to using American manufactured supplies when building homes and for construction in general. The above video is from almost a year ago when Anders Lewendal built a 100% made in America home in Bozeman, Montana.
The most recent home made from 100% American made supplies was in Delaware. You can read more about that story here.
What’s interesting is that most contractors and buyers all around the country don’t even realize the country of origin of the products they buy. When they realize that products that are made in the USA are available, and for the same cost, of course they buy that product. That goes for every product we buy as consumers. If we just LOOK and do a quick Google search, we’ll be surprised at the options we have.
French airliner, Airbus, has committed to building its first factory on U.S. soil. Mobile, Alabama will be the home to this new $600,000,000 factory with hopes of creating 1000+ jobs and brining more business to those in the USA who support the airline industry.
It’s another great example of a foreign company realizing the benefits of American made.
For more on this story, read the original article from the Seattle Times here.
There was a great except from “Entrepreneurial Nation: Why Manufacturing is Still Key to America’s Future” on Reuters today that gives a brief but optimistic overview of United States Manufacturing. The overview is from the point of view of Ro Khanna, former Department of Commerce appointee. He talks of his experiences traveling around our great country, and the businesses & factories he had contact with. There are also insights into the attitudes and outlook of legislators and politicians, and how despite so many factors weighing against American Manufacturing, how it’s still finding a way to win.
Mr. Khanna is still involved in ‘keeping America competitive’ and broadening the manufacturing base.
To read the excerpt in its entirety on Reuters, click here.
The United States of America was founded on the idea, that was reiterated by President Lincoln, that we are a “government by the people, for the people.” Polls around the country show that the people of our nation want manufacturing jobs returned to the USA, now. It is overwhelming (in some polls up to 89%) and non-partisan in our desire to be a great manufacturing country and we share the belief that the manufacturing sector is the greatest asset to our country’s future success.
There have been several articles recently showing this trend:
In a reversal of roles, China now has the task of protecting their manufacturing sector from returning to America. The latest push for ‘American-made’ has seen what some are calling a revival in American manufacturing. The USA’s advantages in productivity and technology are starting to weigh in the our favor once again. Combine that with the enforcement of current laws, and manufacturing will become favorable not just for American companies, but for the global market, to return to ‘Made in USA.’
For the full article from ChinaDaily.com, click here.
The article today on EE Times states that “Electronics manufacturing operations with a total value of at least $2.5 billion are expected to be brought back to North America in the next three years with companies citing quality control as the primary reason for bringing operations back from overseas.”
They later state in the article that being closer to their customer base is a secondary reason from coming back to North America. This seems to be a common theme among companies that reshore their manufacturing, which makes you wonder why others are still in the process of going overseas?
To read the article in its entirety, click here.
It’s been known for awhile that foreign auto companies, primarily from Japan, have seen the benefits of manufacturing their automobiles for the USA, in the USA. The United States is the largest consumer nation in the world, so it only makes sense to manufacture goods where they will eventually be sold.
Japanese automakers continue this growing trend at an ever faster pace today. To read the full article about how Japanese automakers are continuing to employ American manufacturing workers, click here.
Another great article over at ENews Park Forest about the current surge in production and manufacturing for the Wind Energy sector. They quote that “nearly seventy percent of the equipment installed at U.S. wind farms last year – including wind turbines and components like towers, blades, gears, and generators – is now from domestic manufacturers, doubling from 35 percent in 2005.” That is a huge jump in domestic manufacturing for one industry.
To read the full article, click here.
There is a good article over at Huffington Post this week talking about American companies brining manufacturing back to the USA, that just a few years ago they shipped to China. Factors like increasing Chinese labor wages and American productivity are making it a viable and realistic solution again. There are some good numbers and statistics that give us an idea of the changing landscape in China.
It’s a great story of American companies from 33 of our 50 states coming together to do the extraordinary. All $2.5 Billion was sourced back to American made businesses to manufacture the most recent Mars rover.
Take a look at the video above to learn more about where the different parts of the Rover were made.
Original article on ABC.com.
A few good articles on American Manufacturing from the past 2 weeks.
MANUFACTURING IS RETURNING TO AMERICA - Pittsburgh Post Gazette
MFG JOBS AT HIGHEST SINCE 2009 - Forbes
MFG SECTOR SHRINKS FOR 2ND MONTH IN A ROW – Bloomberg BusinessWeek
MFG CONTRACTS DUE TO LACK OF SPENDING? – Bloomberg
A leader in advanced battery technology, A123 Systems has made public that they are running out of money. A123 Systems has factories in the U.S. and has received hundreds of millions of dollars in state and federal grants.
As a result of their downfall, the Chinese company Wanxiang Group has heavily invested in A123 Systems.
For more details on the history and ramifications you can read more at Reuters.com.
The latest monthly U.S. trade figures were released this morning by the Department of Commerce:
- In June 2012, the U.S. racked up an international goods and services trade deficit of $42.9 billion.
- The monthly goods deficit with China rose to $27.4 billion, up from $26.0 billion in May. This is the fourth straight month of a rising trade deficit with China.
Said Scott Paul, Executive Director of the Alliance for American Manufacturing (AAM):
“The good news is that our overall trade deficit fell in June–that helps our economic growth. The bad news is that our trade deficit with China continues to climb. Slower growth in China has hurt our exports, but so has the fact that China’s currency has lost value this year. It’s clear we need a bolder strategy with China on its currency and subsidies, which are significant threats to the jobs recovery we have seen in manufacturing.”
There are several actions Congress and the Administration could take right now to create jobs in America and lower the trade deficit:
1. House Speaker John Boehner should permit a vote on bipartisan legislation that would deter China from manipulating its currency. This bill would pass overwhelmingly, as it did in the Senate last year.
2. Treasury Secretary Timothy Geithner should designate China as a currency manipulator. While the value of China’s currency has risen somewhat against the dollar over the past year, it has stalled this year. The yuan still has a long way to go to reach equilibrium, and has only kept pace with the rate of change of the dollar’s decline against other major currencies.
3. The Obama Administration should launch a series of self-initiated trade cases against surges of Chinese imports in key sectors such as auto parts.
4. The President’s export initiative should evolve from an exercise in doubling exports to a strategy that dramatically lowers our trade deficit, particularly in high-value and strategic sectors of the economy.
5. The President and Congress should work together to pass a “Made in America” agenda that promotes reshoring, investing in our infrastructure, training a skilled workforce, leveraging federal procurement to support U.S. industry, and targeting tax breaks to domestic production.
(VIA AAMFG.com)
The latest monthly U.S. jobs numbers were issued this morning. Total nonfarm payroll employment rose by 163,000 in July, and the unemployment rate was essentially unchanged at 8.3 percent. The manufacturing sector added 25,000 jobs in July.
Said Scott Paul, Executive Director of the Alliance for American Manufacturing (AAM):
“Manufacturing job growth rebounded in July after a stagnant second quarter. Though 25,000 manufacturing jobs is no boom, it does mean we are back on an upward trajectory. We see continued strength in jobs in durable goods, autos, and fabricated metals.
“There are troubling signs ahead, however. Most forward-looking indicators have been trending down. China is devaluing the yuan again to try to gain a competitive edge, and the Chinese government is subsidizing key industries in the face of falling domestic demand. Congress and the Administration face a choice: ignore these threats and risk another manufacturing recession, or get tough with China so that we can properly rebalance our economic relationship with Beijing.”
(VIA AAMFG.com)
Longaberger has announced the transition of its entire line back to the United States to be manufactured. The ENTIRE line. That’s a huge commitment from President & CEO Tami Longaberger and will set a great example for how other companies can do the same.
It is a great story of an American company taking the situation into their own hands, risking profit in favor of values. Longaberger is expected to add 500 manufacturing jobs in the Ohio region with the production of its hand baskets and pottery, a turnaround from the 300 they had to layoff in 2009.
This is what Tami Longaberger had to say: “As I’ve talked with you and others in the sales field, as I’ve thought long and hard about who we are and what makes us special, I keep coming back to something fundamental,” said Ms. Longaberger. “Our company was founded in America’s Heartland. We stand for American values. We want to create more American jobs. We want to help rebuild our country.”
Read more on the Lonaberger website.
For every state in North America, this interactive map displays three key statistics from the National Association of Manufacturers. By clicking a pin, you can discover how many people are employed in manufacturing jobs, the average annual compensation for people in manufacturing, and the number of manufacturing facilities in the state. Though the numbers were collected a few years ago, they are a good reference to track the improvements made in American manufacturing, and for the emphasis that the current presidential election will place on manufacturing jobs.
(VIA AAMFG Poster by: LDonia)
New report by former Homeland Security Secretary Tom Ridge and former Assistant Secretary for Homeland Security Robert B. Stephan sees the U.S. as too dependent on foreign suppliers in crises.
CLICK HERE TO DOWNLOAD THE FULL REPORT
Washington, DC. The United States is at risk of being dangerously unprepared for serious emergencies because of the offshoring of critical manufacturing sectors and a reliance on foreign suppliers for products needed in the wake of catastrophic events. According to a groundbreaking report released today by the Alliance for American Manufacturing (AAM), the U.S. must revitalize its manufacturing capacity to reduce such vulnerability.
The report was co-authored by Tom Ridge, the first secretary of the U.S. Department of Homeland Security, and Robert B. Stephan, a former Assistant Secretary for Homeland Security for Infrastructure Protection.
“There is a direct nexus between a strong domestic manufacturing sector and America’s ability to prevent, mitigate, recover from, and rebuild quickly in the wake of catastrophic events,” said Ridge. “Revitalizing America’s domestic manufacturing capacity must become a clear and urgent national priority at all levels of government and among industry leaders.”
The report illustrates the growing frequency of major catastrophic events, man-made and natural, as well as new threats like cyber attacks and pandemics. It contains specific recommendations for restoring the nation’s internal capacity to address emergencies, including revitalized manufacturing, investment in America’s infrastructure using U.S.-made materials, strengthened public-private collaboration, and enforcement of trade laws.
The United States now relies on foreign suppliers for everything from steel, cement, batteries, and critical high-technology components to every day medical supplies such as antibiotics and penicillin. The resultant risks include not having access to needed materials and products, delayed delivery times, and the poor quality of some imported products. These problems are becoming more noteworthy given the fragility of the nation’s aging infrastructure.
The report is the first comprehensive analysis of America’s growing reliance on global suppliers – many of whom may not have the best interests of the United States at heart in a time of crisis, or those who cannot meet demand quickly in times of emergency, given the complexity of the global supply chain.
“Relying on a potentially hostile trading partner in a time of need puts our national security at risk,” the report states. “There are also many important vulnerabilities associated with the structural fragility of our infrastructure nodes and systems, many of which are at or near the end of their projected operational life spans and in need of a thorough overhaul.”
China, for example, produced five times the amount of steel that U.S. companies did in 2008, and Chinese cement was used in construction on half of American home foundations prior to the recent recession. Today, no U.S. plant produces the key ingredients for antibiotics, making the nation more vulnerable to pandemics and bioterrorism attacks.
“The nation’s worn out infrastructure is the soft underbelly that provides an inviting target for attacks that can have a widespread, devastating impact,” said Stephan. “Hardening our critical infrastructure is key to preventing and mitigating disastrous events such as terrorist attacks or natural disasters concerning power plants, pipelines, and transportation systems.”
The report recommends taking a two-track approach to reduce vulnerabilities and to build the capacity to respond and recover quickly and efficiently in the aftermath of a catastrophic disaster. Some recommendations include:
• Develop a plan to make the restoration of a strong American manufacturing sector a key component of both national and economic security strategies.
• Reinvest in America’s infrastructure, using U.S.-made materials.
• Incentivize the revitalization of American manufacturing, including the use of domestic-content preferences that maximize the power of federal procurement funds.
• Enforce trade laws to ensure a level playing field for U.S manufacturers and their workers facing unfair competition.
• Invest in the American workforce to ensure we have the trained workers needed to rebuild our infrastructure and work in a larger, more modern manufacturing sector.
“Reliable domestic supply chains could help mitigate the risk associated with our current over reliance on long-lead-time offshore supplies and suppliers regarding those products and materials critical to supporting response and recovery requirements,” the report asserts.
Ridge and Stephan say that revitalizing American manufacturing must be a “clear and urgent national priority since we are losing manufacturing capacity with each passing day.” They add that the “21st Century risk environment poses perhaps the most significant set of challenges we have yet had to face.”
“This report should serve as a wake-up call for action,” said Scott Paul, the Executive Director of the Alliance for American Manufacturing (AAM), which commissioned the report. “We must take concrete steps now to insource our preparedness capabilities.”
Adds Paul, “Unfortunately, not enough has changed since the tragic events of September 11, 2001, and even since Hurricane Katrina seven years ago. Tragically, we’ve seen a further decline in America’s manufacturing capacity, even while new risks are emerging. This report underscores just how critical it is to the safety of the American people to rebuild our industrial base now.”
Paul concludes, “We may not be able to predict when catastrophic events will occur, but we can do much to ensure that America is equipped to prepare for, respond to, and minimize the impact when disaster strikes.”
The U.S. Department of Defense (DoD) has restored a 35-year rule requiring that steel purchased by the U.S. military be 100 percent domestically produced. The rule, originally overturned by DoD in 2009, requires armor plate steel to be both melted and finished in the United States. Several Ohio companies, including Cleveland’s ArcelorMittal and Cliffs Natural Resources and Marion’s Nucor, are involved in the production of Armor plate.
(VIA AAMFG Posted by: SCapazolla)
A new report by the Information Technology and Innovation Foundation (ITIF) concludes that America’s R&D tax credit in 2012 dipped to 27th out of 42 countries studied.
Most recently, the U.S. credit ranked 24th out of 38 industrialized countries, according to the Organisation for Economic Co-operation and Development.
The ITIF report is the latest snapshot of what the tech sector says is clear evidence that the U.S. is not keeping up with global competitors when it comes to incentivizing research.
(VIA AAMFG Posted by SCapazzola)
After a huge backlash from the American public about our Olympic team’s opening ceremony uniforms being made in China, Ralph Lauren has bowed to the demands of the citizens the team represents. They have promised to manufacture the 2014 Olympic uniforms in the USA.
It is very insincere and makes for a weak brand when your entire image is that of America and patriotism, only to be called out for manufacturing all your goods overseas. I’m sure it was humbling for Ralph Lauren and an eye opener for other US based companies that think the public doesn’t notice the country of origin of what they purchase. Especially premium brands like Ralph Lauren that charge hundreds of dollars for a garment made in China. There are a lot of premium textile and apparel companies made in the USA if you’re willing to spend that money.
Without questioning the motives or why it wasn’t done that way to begin with, let’s congratulate the citizens for speaking up. We have the power to change what no legislation ever could. Here’s to hoping that everyone who was up in arms about this news story will do a label check and be sure to support American-made companies from here on out. It is possible, it just takes a little more effort.
China won the WTO ruling for diamond saw blades and frozen warm-water shrimp from China, when the USA decided not to contest. The verdict was dictated by the USA’s method of calculating, “zeroing.” China claimed it is not legal under WTO laws to use this methodology, and the USA has lost several ruling because of its use. The US stands by our formula as being far superior to the WTO’s formula, which allows for a greater amount of cheap goods to be dumped into our markets.
The US Department of Commerce has stated they will stop using the “zeroing” formula from now on.
It’s sad that in a time when our trade deficit is at an all-time high, a technicality on calculating dumping laws has allowed China (and countless other countries) to slip their under-priced goods into our already unstable and saturated market.
Element Electronics is bringing their overseas assembly back to the USA, Detroit, Michigan to be exact. In a market that is all but disappeared from the United States, there are indications that the trend can be reversed. Assembly is a great start, kudos to Element for bringing it back, it sounds like it is paying off.
Apple CEO Tim Cook sat down at this week’s D Conference to be interviewed by Kara Swisher and Walt Mossberg. As the CEO of the world’s most influential technology company, it was refreshing to hear some optimism when the topic came up about American Manufacturing.
Mr. Cook took the opportunity several times to voice his hope that one day it will say ‘assembled in the USA’ on the back of an Apple product. He stressed that there is an “intense focus on the final assembly” being brought back stateside, while pointing out that the current CPUs for iPads and iPhones are built in Austin, Texas and that the glass for iPhones worldwide is made in Kentucky.
It was refreshing to hear some passion and optimism for the possibility of an American made or assembled Apple product. Instead of resorting to all the reasons it can’t be done, Mr. Cook responded in a very authentic way to the question of future American-made Apple products, “I want there to be! I want there to be!”
AP: China’s Ministry of Commerce has ruled that tariffs on their illegally subsidized goods are themselves illegal.
Reuters: World Bank economists see slowing growth in China.
NYT: Chinese manufacturing continued to slow.
WSJ: More analysis of the contraction of China’s manufacturing sector.
Bloomberg: China may turn to stimulus to help the manufacturing sector.
The Atlantic: Manufacturing in the Midwest is making a comeback.
The Iowa Republican: The factory President Obama visits today is in the process of sending 80 jobs to Mexico.
BBC: London wants to help the yuan become a global currency.
(VIA AAMFG Posted by: smorgante)
On MSNBC’s Dylan Ratigan show last week, Alliance for American Manufacturing (AAM) Executive Director Scott Paul was asked if manufacturing jobs were indeed coming back to the U.S. His response was that, yes, some jobs are coming back. But the bigger question is how to turn this “trickle” into a trend.
The Wall Street Journal’s James Hagerty has followed that up with an article entitled “Once Made in China: Jobs Trickle Back to U.S. Plants.” Seems like everyone’s thinking that, while “reshoring” sounds like a great idea, it’s actually rather slow in happening.
Hagerty cites a Whirlpool Corp. plant in Greenville, Ohio that will begin producing KitchenAid hand mixers. For the previous six years, the hand mixers had been made by a contractor in Huizhou, China. The new operations at the Greenville plant will mean the addition of 25 manufacturing jobs.
Why was Whirlpool able to bring back production? Even though labor costs are still lower in China, U.S. manufacturing workers “on average produce about three times as much per hour as their Chinese counterparts because of greater use of automation and more efficient manufacturing processes.”
By paring down production costs and streamliing the assembly process, Whirlpool found a way to make American manufacturing competitive.
Hagerty says this illustrates both the promise and limitations—of a reshoring trend “that has been growing over the past two years.”
The “reshoring” of some manufacturing work that was “offshored” to low-cost producers like China in the past few decades. Producing in Asia “is not as big of a no-brainer as it was 10 years ago,” says Mr. Good. Whirlpool is considering bringing back production of other small appliances.
Yet the return of some production to the U.S. by Whirlpool and scores of other companies isn’t creating a huge number of jobs. Most of the parts for the mixers—including the motors—are still made in China because Whirlpool couldn’t find U.S. suppliers that would make them cheaply enough. Plastic parts for the mixers are being made in the U.S.—but partly on equipment newly purchased from China.
It’s a start, though, and one that the U.S. needs to pursue in order to boost a potential comeback for the manufacturing sector:
After a 35% decline in the number of manufacturing jobs between 1998 and 2010, the tally has since risen by 489,000, or 4.3%, to 11.9 million. Most of that increase is due to the economic recovery rather than reshoring. But IHS Global Insight, an economic research firm, forecasts that the number of manufacturing jobs will climb 3.2% this year compared with a 1.6% increase in all jobs.
Read more about the importance of manufacturing to the U.S. economy.
(VIA AAMFG.org, Written by: scapozzola)
The world trading community has been putting heavy pressure on Beijing in recent years to properly revalue its currency. This is because China’s deliberately undervalued currency not only provides a huge boost for Chinese exports, but also violates world trade agreements and has led to widespread distortions of global markets.
Ironically, the Chinese economy may be facing enough troubles of late that the nation’s currency, the yuan, may actually stall on its own rather than appreciate in a previously hoped for manner.
Reuters reports that financial analysts are “reconsidering a widely-held assumption that the currency would appreciate 2-3 percent this year” due to a “slowdown in China.”
This is a serious problem, coming as it does when Beijing has at least been brought to the table about getting its currency in order.
More significantly, it poses real problems for the U.S. America’s manufacturing advocates have consistently argued that an undervalued Yuan is harming U.S. competitiveness:
The wild card, of course, is how the United States, which faces presidential election this year, will respond to a pause in yuan appreciation.
There has always been a strong diplomatic aspect to the yuan exchange rate, and much of the rises in its value against the dollar have been in reaction – albeit usually delayed – to U.S. pressure.
(VIA AAMFG.org, Written by: scapozzola)
The House successfully passed an amendment to the National Defense Authorization Act introduced by Rep. Chris Murphy (D-CT) that will allow the government to gather job creation information and consider that information in contracting decisions.
Murphy’s bill, which was re-cast into an amendment to the National Defense Authorization Act, will give manufacturers the opportunity to provide information to the Department of Defense regarding how their bid for a contract will affect domestic employment. The potential contractor would list on their bid the number of jobs created or retained if the bid is awarded. The bill would then allow the Defense Department to take this “Jobs Impact Statement” into consideration when deciding between different bidders.
Murphy explained: “Our premise is simple: the Defense Department should give preference to American manufacturers when awarding contracts. Most people assume we already consider American jobs when we hand over our defense dollars to contractors. Well, we don’t, but we should.”
Read more about Buy America preferences.
(VIA AAMFG.org, written by scapozzola)
A guest column, from Allison Allen of Medina, Ohio:
One of America’s economic strengths is the environment it creates for small business startups and growth in a wide variety of industries and sectors. Too often, investors and forecasters limit their idea of a small business to retail, restaurant and other boutique-like shops and traditional “mom and pop” operations—however, one of America’s most promising industries for the small business startup is the manufacturing industry.
The jobs and money that new manufacturing startups inject into the American economy can help heal the economy and prevent similar economic downfalls in the future. New manufacturing startups can attract population growth, generate new taxes and provide communities with a positive economic upswing. Grants are readily available in the U.S. from private individuals as well as the government and should be carefully researched by entrepreneurs as they prepare their budgets and costs of doing business.
In addition to grants, there are consortiums of mature business leaders that are available to mentor infant manufacturing companies and help shape growth based on their experiences. Organizations like MAGNET, the Manufacturing Advocacy & Growth Network, provide support, consulting services, incubator offices with the goal of transforming the economy into a powerful, global player. As a young manufacturing company, partnering with consortiums and organizations like MAGNET can be a priceless investment and the difference between success and failure.
Dick Wilk, Founder of Refractory Specialties, Inc., comments, “As a young start-up we couldn’t deny the opportunity to birth a manufacturing facility in the USA. We are home-grown people that start businesses where we live. This is our home.” In the early, 1990’s Wilk and his team worked on their dream on the weekends from the back room of an old warehouse in addition to their regular full time jobs. Today, RSI and its sister companies are a $24 million business.
“We have benefited from the tax abatements provided by the communities our facilities reside in over the years,” Wilk says. “The process is easy and allows us to expand our business without incurring additional property taxes.”
Many American entrepreneurs weigh the pros and cons of creating their business in the USA. In the end, many entrepreneurs want to build and grow their business right on American soil and leave a legacy for their product, their family and their country.
Of course, any small business startup is not without challenges. Breaking into established manufacturing niches can be difficult for new entrepreneurs to manage without careful planning and good networking. Additionally, fewer investors seek out manufacturing startups, which is especially problematic when it comes to collecting enough capital to invest in the costly manufacturing equipment, large facilities, and extensive distribution resources necessary to parts and commodity production.
Manufacturing is key in both domestic and international economic strength. In fact, this is the perfect era to start a small business in the United States due to several key factors. As the U.S. economy recovers from its recent stagnation, domestic production of commodities is essential. U.S. manufacturing startups:
• Create jobs,
• Provide supply for national and international distributors and assembly plants and,
• Ensures American money stays home instead of sending it overseas to large factories and foreign companies.
While there are hurdles to small business ownership, they are not insurmountable and can be managed with professional financial oversight and good research on market demands. Entrepreneurship requires dedication and motivation. While the challenges are very real, so is the personal reward of starting a small business in the United States. Manufacturing played a large role in the growth of the United States throughout history and continues to remain a critical part of our economy today.
Starting a new manufacturing business is a promising enterprise for both the entrepreneur and the American people—it encourages domestic production, creates jobs, and empowers the nation to put money behind its own products that are necessary here and abroad.
Great video featured on MSNBC today via the Dylan Ratigan show.
Some experts from the interview (or skip to See the video report and interview here.) :
“…what stands out about our research is we look at totally cost, looking at the cost to produce in china and bringing goods to customers in the u.s. what we found was from 2005 to what we project to be next year is costs are going to be had. the cost benefit china had in terms of producing in china and shipping to the u.s. is going to be cut in half next year, and that’s driven by higher labor cost and higher transportation cost. there is a magic barrier of about 15%. when the company gets below 15%, it becomes attractive for u.s. manufacturers to bring some of that production back to the u.s. which is great news for america and great news for american workers.”
“…what stands out about our research is we look at totally cost, looking at the cost to produce in china and bringing goods to customers in the u.s. what we found was from 2005 to what we project to be next year is costs are going to be had. the cost benefit china had in terms of producing in china and shipping to the u.s. is going to be cut in half next year, and that’s driven by higher labor cost and higher transportation cost. there is a magic barrier of about 15%. when the company gets below 15%, it becomes attractive for u.s. manufacturers to bring some of that production back to the u.s. which is great news for america and great news for american workers.”
BART Makes the Wrong Decision.
Recently, the San Francisco Bay Area’s BART transit system had been deciding on a roughly $3 billion contract to purchase new subway cars to replace its aging fleet. BART officials had been weighing bids from two finalists, Montreal-based Bombardier, and the French company Alstom.
Bombardier had offered a lower bid, but one that only met the minimum Buy America threshold of 60% U.S.-made content. Alstom, however, had pledged at least 95% American-made content in the cars they would deliver.
Although the Alliance for American Manufacturing (AAM) had strongly urged BART officials to go with the most “Made in America” option, today the BART board made the wrong call. In a 9-0 decision, it chose the Bombardier bid.
AAM Executive Director Scott Paul expressed the disappointment of many advocates of U.S. manufacturing:
“The fact that BART elected to go with a new rail car that includes a substantial amount of outsourced parts and production shows just how weak our Buy America laws are. We’re very disappointed.
“I hope BART doesn’t share the city of Chicago’s experience, where Bombardier was cited by federal authorities for faulty Chinese parts in its CTA passenger rail cars. In contrast, I commend local authorities like the Alameda-Contra Costa Transit District who have done the right thing by insourcing more production.”
Read more about the importance of Buy America preferences.
The latest monthly U.S. jobs report was released this morning. In April, the U.S. gained 115,000 jobs, including 16,000 in manufacturing.
Overall, the U.S. manufacturing sector has gained 488,000 jobs since the beginning of 2010, including 136,000 this year.
Commented Scott Paul, Executive Director of the Alliance for American Manufacturing (AAM):
“No one should be happy with this jobs report. It’s always good news when manufacturing is in positive territory, but the 16,000 factory jobs added in April is well below the trend of the past two years. There’s still a lot that Congress and the Administration should be doing to boost job creation in America: pass an infrastructure plan, lower the trade deficit, and target tax breaks towards American manufacturing.”
On Wednesday, March 21, Starbuck Coffee Corporation (NASDAQ: SBUX) announced its plans for investing in the USA.
A new $180 million factory in Augusta, Georgia will be the one of six that Starbucks currently runs in the USA. It is estimated that the new plant will generate around 150 new jobs and plans on using it to produce their instant coffee, VIA, as well as ingredients for their Frappuccino, both currently being produced overseas.
In keeping with their message of American manufacturing, Starbucks CEO, Howard Schultz, made it know that they have brought production of their mugs back to the US as well. This is great news for an Ohio-based mug manufacturing facility that otherwise would have had to close its doors. With Starbucks new partnership the factory will keep its doors open and maintain jobs right here in the USA. Mr. Schultz made the statement that “We can not wait for Washington.”
With the recent announcement for entering the energy drink market, and to produce their new single-cup home brew system, Verismo, there is a lot of upside to their recent interest in bringing their manufacturing back to stateside.
(Full disclosure: the founder of 50 Built was previously a stockholder in Starbucks Corporation and has had family members work for Starbucks Corporation in the past.)
“Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.”
-Margaret Mead
Shown in the short video above it’s obvious there are threats to bringing jobs back to America. Billions of dollars in public infrastructure are going to pay Chinese firms using Chinese steel and Chinese workers. Here, in the USA.
Loopholes, in this case, cost thousands of jobs and billions of dollars in a depleting California economy.
Senators, Members of Congress Urge President Obama to Save U.S. Auto Parts Jobs
March 16, 2012. Washington, DC. A group of 188 Senators and Members of Congress have sent a letter to President Obama expressing “serious concern” about China’s massive subsidies and policies to unfairly support its auto parts sector. The letter encourages the President to “use all existing authority under the law to preserve and protect U.S. production and jobs.” Click here for a list of signers.
The Alliance for American Manufacturing (AAM), a non-partisan partnership of some of America’s leading manufacturers and the United Steelworkers, praised the letter.
Said AAM Executive Director Scott Paul, “Congress has said loudly and clearly that it believes the Obama Administration should stand up for American auto parts workers and businesses to guarantee a level playing field. Now, the ball is in the administration’s court. Will President Obama match his rhetoric on China with action to preserve auto parts jobs in America?”
A series of recent reports have documented a number of policies that China’s government is using to boost its domestic auto parts production. Beijing has already spent $27 billion in subsidies for its auto parts sector, with another $10 billion expected in the near-term. The Chinese government also essentially blocks exports of U.S. autos while favoring its own industry, in direct violation of World Trade Organization (WTO) commitments.
Additionally, the Chinese Government imposes restraints on the export of key raw materials needed for the production of auto parts. China also coerces U.S. companies in China to transfer their technologies to Chinese partners.
These tactics have enabled imports of Chinese auto parts to surge by 25 percent in each of the past two years. And in just 10 years, the U.S. trade deficit in auto parts with China has grown by nearly 900 percent. No other major auto-producing nation, including Germany, Japan, and South Korea, has such a trade imbalance. In fact, those countries export more auto parts to China than they import.
An unfortunate result of China’s predatory practices is that the link between U.S. auto assemblers, parts producers, and aftermarket producers has been severed. Thus, while the nation’s automotive assembly plants are in business again, the auto parts sector now faces serious challenges.
Said Paul, “China is not penetrating our market the old-fashioned way, by outcompeting us. Instead, Beijing has pumped $27 billion of subsidies into its auto parts sector, with an additional $10 billion planned. The president should initiate a trade action against China to stop its auto parts subsidies, open its market, and grow jobs in America.”
Read the full letter to President Obama.
For the finale they confront the big businesses that can make a big change, fast.
Alliance for American Manufacturing (AAM) statement
The White House announced today that it has filed a request for consultations at the World Trade Organization (WTO) regarding China’s export restrictions of rare earth metals, as well as tungsten and molybdenum. Rare earth metals are used in a broad range of manufactured products: auto parts, lighting, wind turbines, and countless other goods. The European Union and Japan have filed suit against China as well.
Additionally, President Obama signed into law today a bill that allows the Department of Commerce to continue to apply countervailing duties against non-market economies.
Said Scott Paul, Executive Director of the Alliance for American Manufacturing (AAM), of these new trade actions:
“It’s clear that the Administration’s trade agenda is shifting to more aggressive enforcement, which is welcome news for America’s workers and businesses as they face both subsidized Chinese competition in America and restricted access to China’s marketplace.
“Over the past few years, our activists having been working hard to make sure their elected officials know just what is at stake on trade laws, surging auto parts imports from China, and China’s unfair trade practices such as rare earth mineral export restrictions. It appears that our leaders are finally beginning to listen.
“We are pleased that the Obama Administration and Congress are cracking down on China’s cheating, but there is much more work to do. Our trade deficit with China is growing, not shrinking. China has devalued the Yuan again this year. And, thesubsidies Beijing is lavishing on its auto parts sector are threatening the very heart of our manufacturing recovery in America.
“We look forward to working with the Administration and Congress to ensure a level playing field for American workers and businesses, which will grow jobs in manufacturing and other key industries.
“While we appreciate the impact that the upcoming election has in focusing politicians on these problems, America’s manufacturers and workers hope that come November 7th, their interests will not be forgotten.”
After seeing examples like this, we need to remember the next time we don’t think it’s possible to buy American.
We need to stop listening to the people that say it can’t be done. Of course if we don’t try, it won’t be.
It can be done. If we care enough and are serious about buying American-Made the options are there.
The next few posts are follow-ups to this video.
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