10.05.2011

"Made in the USA" -- Can it Happen Again?

During the past 20 years, US manufacturers have moved their production operations, at a massive rate, to foreign countries that offer cheaper labor costs.The migration of US manufacturing jobs to such locations as China have resulted in cheaper products, but the overall effect on the US economy has been hotly debated. Will manufacturing in the United States ever see a resurgence?

Tim Hutzel and Paul Piechota recently published a very interesting and timely book titled Keeping Your Business in the U.S.A.: Profit Globally While Operating Locally, and they feel that the current adage -- "The US can't compete with offshore labor costs" -- is a mere myth. Both have spent the past three years researching companies that have flourished while manufacturing their products in the US and their book documents just how these organizations achieved this goal.

I recently asked both authors why they believe the US can recover from the out flow of manufacturing, and here is their response:

A burning issue that is certainly in need of a remedy is the mass departure of manufacturing from the US to foreign countries. The results of this exodus are felt every day. As much as you would like to buy US-made products, this has become an impossible task. It is heartbreaking and disturbing that so many products, such as bicycles, clocks, garments, shoes, and computers are not produced domestically anymore.

Manufacturing can return to the US because many companies have been hurt by the rush to outsource. We have heard the tales of many business leaders regretting their outsourcing decisions -– the unplanned costs, poor quality, uncontrolled processes, long delivery times, graft, monstrous order quantities, inventory nightmares, lost and damaged products, oversight trips overseas, confrontations, half-truths, excessive order-to-remittance times, and added debt. In addition, there are social and national implications of outsourcing -– unemployment, increased government jobs, loss of skills, weakened national defense, loss of tax base, and unbridled national debt.

In our book, we clearly illustrate three manufacturing companies that have been able to resist the outsourcing trend and achieve overwhelming success while keeping jobs in the US. We have examined the successes, failures, lessons learned, and methods used by each company to achieve and sustain profitability.

What do you think the future holds for US manufacturing? Will labor costs in China only eventually rise? Will shipping and inventory costs associated with production in foreign countries eventually be important factors in cost?

10 comments:

Anonymous said...

If you liked this article, check out this website!

http://competitivechange.com/default.asp

Mike said...

Head over to Rally Eagle if you are interested in purchasing American Made products!

http://RallyEagle.com/

Ben Benjabutr said...

Made in the USA could happen soon because lots of manufacturers in UK already move production from Asia back to UK. The reason is that local sourcing can handle demand fluctuation much better than overseas sourcing.

samedayessay.com said...

I discovered many new things from your article. Thank you for this!

Anonymous said...

I love your post very much, it's a good article to make me more interest in Logistics and dissertation writer supply chain. Good job man keep posting!

http://astonishingpapers.com/ term paper help said...

You are a very talented writer! Thanks for sharing this great and interesting stuff. I would like to see more posts like this!!

uk-essays.co.uk said...

It’s been a pleasure reading your blog. I have bookmarked your website so that I can come back & read more in the future as well. Please do keep up the quality writing!!

royalessays review said...

So much formats, I use to dream about the time when the perfect unique format will be invented, and moreover it will suit all the programs. That would be great!!

samedayessay reviews said...

Dziękuję. bardzo ciekawe!! Dzięki za info!!!!

wedoessays.com said...

You are a very talented writer! Thanks for sharing this great and interesting stuff. I would like to see more posts like this!!