another POV on the return of manufacturing to the US

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madhatter
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another POV on the return of manufacturing to the US

Post by madhatter »

http://www.zerohedge.com/news/2016-11-2 ... ated-parts" onclick="window.open(this.href);return false;


on a related note... try finding a good snow shovel...
mach es sehr schnell

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Bubba
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Re: another POV on the return of manufacturing to the US

Post by Bubba »

I haven't heard one argument against reshoring so I'm not sure what the author is commenting on. Frankly, manufacturing is doing quite well in this country, albeit in the south and west rather than the rust belt, and since the passage of NAFTA in 1993 our exports have increased almost 100% while imports have increased something closer to 125%. In recent years, with lower energy costs as a major driver, larger industrials such as chemical manufacturers have been increasing production here and exporting and, with a lot of that energy now produced in PA and OH, more such plants are being built away from their traditional base on the Gulf Coast.
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madhatter
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Re: another POV on the return of manufacturing to the US

Post by madhatter »

Bubba wrote:I haven't heard one argument against reshoring so I'm not sure what the author is commenting on. Frankly, manufacturing is doing quite well in this country, albeit in the south and west rather than the rust belt, and since the passage of NAFTA in 1993 our exports have increased almost 100% while imports have increased something closer to 125%. In recent years, with lower energy costs as a major driver, larger industrials such as chemical manufacturers have been increasing production here and exporting and, with a lot of that energy now produced in PA and OH, more such plants are being built away from their traditional base on the Gulf Coast.
There are two basic arguments against bringing manufacturing that was transferred overseas (offshored) back to America (reshoring):

1. It's too costly

2. The supply chain is now in China/Asia and it's not possible to source the parts needed to bring manufacturing back to America.
he then argues for a return of the entire supply chain...
What has been commoditified in the global supply chain is not quality or reliability-- what's been commoditified is pirated, defective parts that look exactly like legitimate parts.

There is a solution that's a lot cheaper than shoveling sand against the counterfeit tide: bring the entire supply chain back to America where production can be verified and the parts tested and ID'd/ labeled with technologies that cannot be counterfeited as easily as the parts.

Come home, America, is not just a political slogan: it's simply good business.
seems he clearly stated the arguments against, and offered a " value added" reason for aggressively re-shoring...

blue collar families don't care about import and export percentage increases, or that " Frankly, manufacturing is doing quite well in this country" they care about jobs...

on a related note what caused manufacturing to move from the rust belt ( formerly blue union states) to the south ( red right to work states)

Image

perhaps the problem is multi faceted...

there's a lot of counterfeit and imitation crap out there...try buying a good pencil...same w snow shovels...plenty more mundane nothing items we could make here for at or near the same cost w better quality...granted automation has permanently replaced certain jobs but not all of em...lots of places in ten country will be more than happy to have those kind of jobs back if its at all possible...


my dad worked for stanadyne his whole life...When they began having work done overseas, the quality dropped and the time spent reworking, recalling or rejecting parts became a big factor ( they made diesel fuel injection pumps...I say made cuz they are gone now though some mfg still takes place in SC I believe) as profit margins and profits themselves shrank they went from being a great employer where overtime was abundant and employees overwhelmingly rejected unionization efforts to a now empty building...those jobs didn't need to disappear, but they did.. this has happened all over the country and the people left w/o jobs are anxious ( and hopeful, perhaps overly so) to see those jobs come back in any capacity...any effort to bring em back will be appreciated by them...
mach es sehr schnell

'exponential reciprocation'- The practice of always giving back more than you take....
Bubba
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Posts: 26274
Joined: Nov 5th, '04, 08:42
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Re: another POV on the return of manufacturing to the US

Post by Bubba »

madhatter wrote:
Bubba wrote:I haven't heard one argument against reshoring so I'm not sure what the author is commenting on. Frankly, manufacturing is doing quite well in this country, albeit in the south and west rather than the rust belt, and since the passage of NAFTA in 1993 our exports have increased almost 100% while imports have increased something closer to 125%. In recent years, with lower energy costs as a major driver, larger industrials such as chemical manufacturers have been increasing production here and exporting and, with a lot of that energy now produced in PA and OH, more such plants are being built away from their traditional base on the Gulf Coast.
There are two basic arguments against bringing manufacturing that was transferred overseas (offshored) back to America (reshoring):

1. It's too costly

2. The supply chain is now in China/Asia and it's not possible to source the parts needed to bring manufacturing back to America.
he then argues for a return of the entire supply chain...
What has been commoditified in the global supply chain is not quality or reliability-- what's been commoditified is pirated, defective parts that look exactly like legitimate parts.

There is a solution that's a lot cheaper than shoveling sand against the counterfeit tide: bring the entire supply chain back to America where production can be verified and the parts tested and ID'd/ labeled with technologies that cannot be counterfeited as easily as the parts.

Come home, America, is not just a political slogan: it's simply good business.
seems he clearly stated the arguments against, and offered a " value added" reason for aggressively re-shoring...

blue collar families don't care about import and export percentage increases, or that " Frankly, manufacturing is doing quite well in this country" they care about jobs...

on a related note what caused manufacturing to move from the rust belt ( formerly blue union states) to the south ( red right to work states)

Image

perhaps the problem is multi faceted...

there's a lot of counterfeit and imitation crap out there...try buying a good pencil...same w snow shovels...plenty more mundane nothing items we could make here for at or near the same cost w better quality...granted automation has permanently replaced certain jobs but not all of em...lots of places in ten country will be more than happy to have those kind of jobs back if its at all possible...


my dad worked for stanadyne his whole life...When they began having work done overseas, the quality dropped and the time spent reworking, recalling or rejecting parts became a big factor ( they made diesel fuel injection pumps...I say made cuz they are gone now though some mfg still takes place in SC I believe) as profit margins and profits themselves shrank they went from being a great employer where overtime was abundant and employees overwhelmingly rejected unionization efforts to a now empty building...those jobs didn't need to disappear, but they did.. this has happened all over the country and the people left w/o jobs are anxious ( and hopeful, perhaps overly so) to see those jobs come back in any capacity...any effort to bring em back will be appreciated by them...
Don't have time to respond in detail but my initial comment on reshoring was meant to say that I have never before heard anyone make those arguments against reshoring. I read a lot of trade publications and I don't see anyone arguing against making stuff here. In fact, I see a number of arguments along the lines you've suggested, that quality in some cases has suffered and the cost of rework, shipping and increasing labor costs abroad is causing more jobs to either remain here or be returned here.
"Abandon hope all ye who enter here"

Killington Zone
You can checkout any time you like,
but you can never leave

"The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function" =
F. Scott Fitzgerald

"There's nothing more frightening than ignorance in action" - Johann Wolfgang von Goethe
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