Last week Bloomberg BusinessWeek published an insightful article on the hassles of small manufacturers with their China businesses.

The jobs, not the products, are starting to return to our shops in North America.

“American production is “increasingly competitive,” says Harry Moser, founder of the Reshoring Initiative, a group of companies and trade associations trying to bring factory jobs back to the U.S. “In the last two years there’s been a dramatic increase” in the amount of work returning.”

“As costs in China rise and owners look closely at the hassles of using factories 12,000 miles and 12 time zones away, many small companies have decided manufacturing overseas isn’t worth the trouble.”

Our shops are seeing an increasing number of opportunities to manufacture products that were previously made in China.

Our consistent quality, agile ability to implement design changes, and faith in the raw materials to meet spec here in North America are helping our shops win this business back.

Freight costs continue to climb, and holding costs for the larger amounts of inventory needed to fill a  shipping container are also factors in the Make Here or Buy There decision.

The Boston Consulting Group predicted Cost Parity with China by U.S Manufacturers in 2015.
Many Precision Machining Shops are finding that they are competitive today.

Thanks to Bloomberg for the Article

 The China Price isn’t necessarily the Bargain that some buyers think it is…

  • We are fortunate to have Harry Moser and his passion for Manufacturing engaged in this "Reshoring " movement
    • Reduce pipeline and surge inventory impacts on JIT operations;
    • Improve the quality and consistency of inputs;
    • Cluster manufacturing near R&D facilities, enhancing innovation;
    • Reduce IP and regulatory compliance risk;
    • And, most importantly to reduce Total Cost of Ownership (TCO).

    This Total Cost of Ownership  issue is the most compelling. It’s just the facts. The MATH is transparent.
    You can get access to a host of reshoring information, including the Total Cost of Ownership calculator, by signing up at ReshoreNow.
    The total cost of ownership calculator is an actual XL worksheet that will allow you or your customer to estimate the Total Cost of Ownership for a product that takes into account all of thecost  factors that most people ‘gloss over’ in order to make their decision.
    The concerns that we had about our work going to China remain a great introduction to the talking points of reshoring: here’s a Link.
    Thank you Harry Moser for engaging your passion and experience on this critical to North American Manufacturing Issue.