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Evidence of 'Onshoring' – But Where Are the 'Help Wanted' Signs?

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millermartin
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Increase Of American Made Product Sale
millermartin   4/21/2014 12:29:34 AM
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People are love to use american made product. Trends as compare to last few years are quiet different. We have seen that only an increase of about 7% in the sale of american made blenders machines was recodered in last quarter and the stores are still hoping that the number will become more higher. 

jimbo
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re:
jimbo   2/15/2011 5:07:45 PM
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I am willing to pay a premium for US made goods.  Two reasons: 1.  Quality, something that will last more than months and I am assured does not have cadmium,lead or other heavy metals.  I would pay $ 80 for a blender that I know will last 5 years instead of $ 20 for a blender that burns it motor out in one year ( I actually had a motor burn out within four mixes; probably the cheapest of imports)  2.  American workers pay taxes and we all know Uncle Sam needs the income.  Just think if we could increase the tax base and cut spending!!!  Perhaps I am dreaming but it is a nice dream.  Regarding wages:  We Americans must be careful and not again become too greedy.  Have we learned our lesson, I doubt it.  But if you want to get ahead, do not rely on unions to get you outrageous wages/benefits for simple work but improve your education to gain higher paying employement, work more jobs, or just be happy with life and having a job.  The wages and benefits of  1970s unionized industries are gone for good.  Nothing we can do about until people in China/third world also want 3K sq. ft. homes, three cars, a boat, etc....

Barbara Jorgensen
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Re: Onshoring
Barbara Jorgensen   2/15/2011 12:59:04 PM
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Hi Ariella--I'm funny that way, wanting a warranty and all. I guess Eminem's word should be good enough, though... :-)

Today we received more confirmation that costs in China are increasing and component makers are beginning to raise prices. So, assuming costs are coming more in line, other factors, such as weak/strong currency, are still competitive factors. But let's say the playing field evens out a bit and offshore costs are not so advantageous. What are the pros/cons of manufacturing the Americas vs/ offshore? I think it's a good start for a dialog. Off the top of my head, taxes and politics are two things to consider...

Ariella
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Re: Onshoring
Ariella   2/15/2011 12:25:39 PM
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You mean it's not enough that Eminem gave the whole pitch for American cars in a top-ranked Super Bowl ad?  You want a warranty, too?  From what I understand, though, even American cars can have components manufactured abroad; it is not 100% American. 

Isn't the weak dollar a factor, as well?  That would make imported goods more expensive even without the increased transportation costs.

 

Barbara Jorgensen
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Onshoring
Barbara Jorgensen   2/14/2011 1:12:23 PM
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Transportation costs are definitely one reason cited for the onshoring trend. I also think managing a supply chain to and from the Far East is more complex than a lot of companies expected. As these are mostly small to midsize compnaies I expect they found it more expensive than they thought as well.

I'd be willing to pay a premium for certain goods--most of the big-ticket items I buy today qualify. And, since I've been spending a lot of time at the dentist lately, I note the brands of the medical and dental equipment used--again, big bucks. But this stuff is a long-term investment and we aren't talking pennies on the dollar.

I have to admit I gave US-made cars a shot before buying Japanese. Unfortunately, my experience with American cars has been very negative and the investment is too high to deal with the kind of problems I had with my cars. But I'd be willing to give it a shot again with the right warranty.

Mr. Roques
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Re: Re :Evidence of 'Onshoring' - But Where Are the 'Help Wanted' Signs?
Mr. Roques   2/13/2011 9:22:05 PM
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Interesting article. Are transportation costs the mayor reason for on-shoring? 

Is one industry more into on-shoring than others? (maybe IT? or which one?)

Eldredge
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Re: Onshoring
Eldredge   2/13/2011 9:26:40 AM
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It seems like there has been a growing sentiment from consumers that want to purchase products made in America. Here's a question: Would you be willing to pay a premium for a product that is made domestically as a consumer? How about as a purchasing agetnt for a company?

seel225
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Re :Evidence of 'Onshoring' - But Where Are the 'Help Wanted' Signs?
seel225   2/11/2011 4:09:16 PM
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Onshoring will be a major bloster for US economy. Big companies like GE, Ford and Caterpillar are joining this onshoring trend in which some operations would come back to the country, resulting in the creation of new jobs. A weak dollar, complex logistics and quality issues are pushing companies to bring back the work they offshored.Onshoring improves the quality of customer service which makes customers happy.

We have seen major change of numbers in last quater and before that too, I hope this quater results will increse more employement rate in US.If this onshoring trend continues it will not take longer to see Made in America label.

Eldredge
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Re: Evidence
Eldredge   2/11/2011 11:22:33 AM
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Some areas of the country may benefit, but I think it will be a long wait to see an effect in smaller industrial areas. Hope I'm wrong.

prabhakar_deosthali
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Supply Network Guru
Thedeveloping nations may be loosing their competitive edge
prabhakar_deosthali   2/11/2011 6:51:04 AM
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The reversal of the oursourcing trends for the North America  could be the result of the continued inflation in the developing nations. This has resulted in a steady increase in the cost of living in the developing nations. This must have reflected in the cost of outsourcing also rising and rising. Against this the dollar has remained steady over many years now. When I compare the Dollar and the Indian Rupee, the exchange rate for dollar to rupee has hardly changed over the last 7-8 years whereas the cost of living in India has almost doubled over these years. So this chnaged economic scenario may be working in favor of taking the manufacturing activities back to US for the US based companies

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