Manufacturing Is Officially Coming Home

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Re: On Shoring Trend
far911   11/24/2013 12:14:01 PM

Greg M. Jung
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On Shoring Trend
Greg M. Jung   11/23/2013 9:21:33 PM
I especially appreciated the point that 'manufacturers are now considering the costs of transportation when they look overseas'.  Not only is this the transportation of personnel to the Asian factories, but also the higher costs of frequently expediting air shipments due to production part shortages in the factory.  As corporate accounting models evolve and better capture these hidden costs, on shoring becomes more attractive.

Rob Spiegel
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Re: It's called 'on-shoring'
Rob Spiegel   11/22/2013 11:49:47 AM
Thanks for the comment RougeMoon. One thing to remember about the study is that it focuses on the electronics industry. I think there's a silent benefit to this trend, and that's the number of companies that decide not to move their manufacturing to Asia in the first place. We'll never know how many companies have decided lately not to move. But it may be considerable.

As for the study, IPC expects to update it annually.

TJ McDermott
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Now, let's see a curtailment of H1B
TJ McDermott   11/22/2013 10:39:58 AM
This is good to see; an all-service oriented economy was not healthy.  I'd like to see primary fabrication (metals) come back too.

With that, I'd like to see us stop importing foreign labor - H1B visas need to be curtailed, not expanded as congress did this year.  They cant discuss increases again when unemployment gets below 5%.

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It's called 'on-shoring'
RogueMoon   11/22/2013 10:00:56 AM
I'm glad there's now a name for the counter-movement to reverse the damaging effects of "off-shoring".   I'll start using it.  "On-shoring". 

Off-shoring was going to be immensely damaging to the American economy in the long term.  This was said after the Cold War ended when the push to Asia began. 20+ years later, it's true.

I'm happy that there's a survey taken and an association to promote on-shoring.  I'm a bit skeptical of the results though.  The categories are right, but the off-shore quality of labor and risk to intellectual property seems to be ranked far too low.  It depends on who was filling out the survey.  If it's the CEO, he'll definitely rank costs above all else.   If it's the guys responsible for the quality, they'll say quality.  If it's the guys in engineering or manufacturing, they'll have a far different take.

At least, the survey got one thing dead-on correct, there's a wealth of trained resourceful people in America struggling to find meaningful work.  Rather than seeking the cheapest labor and tolerating whatever quality comes of it, perhaps its best to invest in the people who stand the most to gain from healthy businesses in their own country making products they use.  

Whatever the reasons be, on-shoring is something to be encouraged.  The pendulum needs to swing back.

Rob Spiegel
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Data says manufacturing is returning
Rob Spiegel   11/22/2013 6:34:12 AM
It's good to see the anecdotal evidence actually points to a trend that manufacturing is returning to North America.

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