Manufacturing jobs have been a hot topic in the last 12 months. Chances are, if you read any manufacturing related industry news, you have read something about reshoring, FDI, and the need for more skilled manufacturing workers.
FDI, Foreign Direct Investment, is an acronym that is becoming more familiar to those in the manufacturing industry. Foreign Direct Investment is becoming more prevalent as there is a resurgence in the manufacturing industry. According to Paul Davidson of USA Today, the U.S. has become more appealing to foreign companies because of its assets, its position as one of the world's largest markets, a cheap dollar (at the time of his writing), low energy costs, and its proximity to their customers.
Another boost to the American Economy is . . . Read More
The numbers are in for 2014, and it proved to be quite the notable year for reshoring jobs in manufacturing. It seems that for the first time in two decades America brought more jobs home than were shipped overseas.
60,000 manufacturing jobs were added in the USA in 2014, either through reshoring, or FDI (foreign direct investment) in which foreign companies move production to the U.S. - according to a study from the Reshoring Initiative. It appears that as many as . . . Read More
Next-shoring is the new buzzword in manufacturing. Have you heard it yet?
It was coined by a group of McKinsey Analysts early in 2014. The basic concept is not the moving of operations in order to better serve customers and obtain materials, it is the use of technology to overcome physical limitations.
In the past, manufacturers have located themselves in areas where they could easily obtain raw materials or where they service key customers, but the new focus according to McKinsey is operational agility. Operational agility not only encompasses the use of new technologies like robotics and 3D printing, it is the ability to use these technologies in a highly flexible environment.
Interestingly, the idea of next-shoring is not . . . Read More
Labor Day is the unofficial end of Summer, and signifies a shift in most of our schedules. School has officially started for most kids and summer vacations are over for the year. It is a time where the focus shifts from beach trips and days at the pool to Fall sports and the beginning of cooler weather.
As I thought about Labor Day, it is evident that it is so much more than just the last blow out weekend of Summer. Labor Day is a holiday that is meant to celebrate the tenacity and innovation of the American work force. President Grover Cleveland established the holiday in 1887 to pay tribute to the American workforce.
The same work ethic that President Cleveland wanted to honor still exists today, and the manufacturing sector is just as socially and economically vital to the American workforce as it was during that time.
Recently the manufacturing sector has experienced . . . Read More
In the last few months there have been several articles referencing the new era of manufacturing. There seems to be a race to see who can aptly name this manufacturing renaissance, and there have been a couple of blogs that have unashamedly thrown their hats in the ring. But let's not focus on the name, let's focus on what it actually means. Read More
Up....Down.....Up.....Down.....NO..UP! This is the rhetoric that has been plaguing the manufacturing sector for years. Are media sources so desperate for something to say about American manufacturing that the roller coaster of negative and positive is created, or do we have a basic misunderstanding of how to measure manufacturing growth? Read More
As software and manufacturing technology has become more advanced in the U.S. there is a clear path to bringing production home. According to reshorenow.org, the top four reasons to reshore are 1. Bring jobs back to the USA 2. Help balance U.S., state, and local budgets 3. Motivates recruits to enter the skilled manufacturing workforce, and 4. Strengthens the defense industrial base.
So, as manufacturing continues to see steady growth, will that translate into a need for skilled labor? Yes, but maybe not the kind of labor you are thinking. Read More
From a recent article about GE in The Atlantic Magazine, the following conclusions are made:
Changes in the global economy are coming into focus:
American unions are changing their priorities. Appliance Park’s union
was so fractious in the ’70s and ’80s that the place was known as
“Strike City” (GE's complex in Louisville). That same union agreed to a
two-tier wage scale in 2005—and today, 70 percent of the jobs there are
on the lower tier, which starts at just over $13.50 an hour, almost $8
less than what the starting wage used to be.