The New Logic of Offshoring
In its earliest phase, offshoring was driven by cost reduction and limited to non-mission-critical work such as call centers, credit card processing and administrative work.
In its earliest phase, offshoring was driven by cost reduction and limited to non-mission-critical work such as call centers, credit card processing and administrative work.
American businesses have been shifting operations offshore so that now international sales account for 60% to 80% of total sales. It’s time to brings things back to the States. William Holstein explains why CEOs need to rethink the impulse to go offshore.
Don Rongione, CEO of Bollman Hat Co. in Adamstown, Pennsylvania, had a unique ally in his effort to shift hat production from China to Pennsylvania—famed actor Samuel L. Jackson, who, along with other Hollywood stars, was a fan of the company’s Kangol 504 woolen knit cap.
For the fourth consecutive year, reshoring of manufacturing operations to the United States in 2015 failed to keep up with continued offshoring of factory output. In fact, an index compiled by A.T. Kearney showed the largest year-over-year decrease in reshoring-vs.-offshoring in the last 10 years.
General Electric and Boeing are reacting the most loudly to the continuing lack of Congressional authorization of the Export-Import Bank, with both companies cutting or threatening to eliminate U.S. jobs and moving them overseas because of the demise of the federally funded business- financing agency. But some mid-market and small companies also have begun to react as conservative members excoriated the Ex-Im Bank as an agent of “crony capitalism” for big companies that don’t need the help.
With Walmart on the top-5 client list of thousands of U.S. manufacturers, it’s not surprising that many providers are feeling the heat of new pressures in their relationship from America’s largest retailer.
Many manufacturers stood to gain when Walmart opened its procurement process to a new wave of suppliers during its two-day “2015 Manufacturing Summit” held last week at its Bentonville, Ark., headquarters. But some manufacturers already are benefiting from the giant retailer’s 2013 pledge to spend an additional $250 billion on products supporting domestic manufacturing and American jobs over a 10-year period.
For decades, the relationship between American companies and China was relatively uncomplicated: The world’s most populous country served as the best base for low-cost manufacturing of goods for the U.S. market and as a rising market for American products ranging from commodities to smartphones and other consumer goods. But this relationship has been changing rapidly, and growing more complex by the day.
CEO Durst focuses on manufacturing to help startups scale up and to advantage company’s own three brands.
“In some areas we have outsourced too much,” General Electric CEO Jeffrey Immelt acknowledged in a speech as he announced plans to open a new
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.