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.
The Reshoring Initiative estimates that over the past five years, more than 100,000 factory jobs have returned from overseas. It's a drop in the bucket compared to the millions of manufacturing jobs that have been lost over the years, but experts say the tide is starting to turn.
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.
For 30 years, companies have sought to outsource and offshore IT as a way to reduce costs and/or quickly improve performance. Mega-deals were done in the ’90s and then, after that market was saturated, lesser deals ensued.
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.
U.S. companies reshoring their operations and foreign firms investing in facilities here brought more than 60,000 manufacturing jobs to the U.S. in 2014, according to a recently released report reby The Reshoring Initiative. That’s up roughly 2% from record levels in 2013 and a fourfold increase since 2003.
U.S. companies reshoring their operations and foreign firms investing in facilities here brought more than 60,000 manufacturing jobs to the U.S. in 2014, according to a recent report by The Reshoring Initiative.
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.