Back to the US for Manufacturing?
05 02 2013
We recently came across an article in the Washington Post entitled; "Is U.S. manufacturing making a comeback- or is it just hype?" We thought you might like to read it and, of course, discuss with us here.
Personally, I am of the opinion that it is more than just 'hype', and I can cite some examples: Four Corners LLC is a CNC Job shop in Millerton, New York that has been producing high quality parts for their US customers for many years. As long as 10 years ago, they were getting jobs that either would have or was being done in China. Being in the US gave them a much shorter lead time, they were able to make changes quickly and easily, communications with their customers was much easier and the reject rate was FAR lower than "low cost" overseas manufacturing. They invested heavily in equipment to allow them to be very efficient, and as a team they are very adaptable and creative allowing for efficiencies that made up for labor cost differences.
And the trend is not limited to manufacturing parts for others. FastCap in Bellingham, Washington is about 6 years into a 10 year program to have all of their products made in the USA. When I last spoke with Paul Akers about it, they were well over 60% of the way to their goal. Paul uses a laser like focus on Lean Manufacturing to reduce costs on their hundreds of products designed for the cabinet industry.
I also believe that the trend will continue as fuel prices continue to rise, and as consumers allow environmental concerns greater effect on their purchasing decisions. Additionally, the rise of "distributive manufacturing" is, in my opinion, going to have a huge impact on the marketplace over the next 20 years. I'll discuss that in greater detail in the next blog.
Meanwhile, we would love to hear what you have to say about manufacturing coming back to the US. Is it a trend or is it hype from where you stand today? As a group we can probably form a more accurate picture of this than with only our own personal view. Get in touch here on this blog, on our Facebook page, or via Twitter. -2Sand.com