North American Manufacturing can Compete with Overseas Outsourcing
Important Manufacturing Industry Information
There is a movement to prove that North America can be more competitive than China or offshore. Consider that the “Reshoring Initiatives” that reduce the total cost gap from 30% to close to zero. Right there North America can be competitive with a level playing field. Add to this that Memex lean tools to increase efficiency 10-50%, there is a very compelling case for North America manufacturing to be more competitive than China or other offshore locations. Now, with recent moves indicating that North America governments are serious, with unprecedented moves, about bringing manufacturing back to North America
So all combined:
- Reshoring Initiatives with TCO calculations to reduce 30% cost gap to zero
- OEE efficiency improvements of 10-50% on shop floor
- Unprecedented federal financial assistance, 100% capital equipment write-off – should fund these projects.
North America can truly be more competitive than China in manufacturing!
According to Manufacturing & Technology News:
A new nationwide initiative is underway to convince companies that it is worth bringing manufacturing back to the United States. Illinois is the first state in the country to start a “Reshoring Initiative” aimed at large OEMs to re-open factories in America. Backers hope to create similar chapters in Michigan, Indiana, Ohio, Pennsylvania, New York and California.
Leading the charge is Harry Moser, a charismatic, straight-talking former CEO of a major U.S. manufacturing technology supplier who has received financial backing from major trade associations and companies.
Moser and his partners are trying to get manufacturers and their suppliers to use the total cost of ownership software estimator the Reshoring Initiative has developed to compare the China price to the U.S. price, including an estimation of risks. If Moser can get companies to run the data, what they usually find is that Chinese costs are 30 percent below those of a U.S.-made product, but once the total cost of ownership is included, that gap can almost be eliminated.