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When something needs fixed quickly, pulling up your sleeves and correcting the problem on your own can save time and money. Creating jobs, especially within the manufacturing sector, falls into this category.
Hit harder than the overall economy by the recession, manufacturing production was down approximately 12% in 2009, compared to an estimated 2.5% loss in GDP during the same time period. Between the start of the manufacturing downturn in December 2007 and the end of 2009, 15.6% of manufacturing jobs were lost.
The solution to this problem is simple. U.S. manufacturers need customers in order to create jobs. However, in a global market, waiting for the government to create jobs here in the United States is an exercise in futility. The time has arrived to reconsider the current mindset of “offshore outsourcing is cheaper” to a more realistic mindset of “sourcing local reduces total cost of ownership.”
This is the intent of the Re-Shoring Purchasing Fair (officially the NTMA/PMA Contract Manufacturing Purchasing Fair) developed by the National Tooling & Machining Association (NTMA), the Precision Metalforming Association (PMA), and AMT - The Association For Manufacturing Technology. Scheduled to take place at the Hyatt Regency Hotel in Irvine, CA, on May 12, 2010, it is anticipated that 50 to 100 OEMs currently off-shoring special tooling, metal stampings, precision machined parts and components, and assemblies will meet more than 200 U.S. job shop managers to review part drawings. The job shops will then have an opportunity to quote these jobs. Not only does this create opportunities that lead to employment gains, it also has the potential of improving the trade deficit as well as the overall tax base.
Furthermore, OEMs willing to re-shore their products may find a host of benefits such as enhancing lean process improvements, having R&D near manufacturing, inventory reduction, supply chain responsiveness, protecting intellectual property, and reducing their overall carbon footprint.
A strong champion for the Re-Shoring Purchasing Fair, Harry Moser, chairman emeritus, AgieCharmilles LLC, a producer of EDM and HSM machine tools, believes it is far easier for U.S. manufacturers – especially smaller companies that are the backbone of the U.S. manufacturing industry – to take U.S. market share away from imports than it is to increase exports. “According to the U.S. Census Bureau, for a given percentage change in imports or exports of goods, the dollar impact will be 66% higher by decreasing imports rather than by increasing exports. In addition, it is far easier to win on your home field,” Moser says.
We need to show our government, as well as the rest of the world, that we are serious about creating jobs in the manufacturing sector. We need to keep an open mind about re-shoring and give U.S. suppliers a chance to deliver products that are made in the U.S.A.
While having 50 to 100 OEMs and 200 job shops attend the Re-Shoring Purchasing Fair is a start, consider the overall effect of having three to four times that attendance.
The fact remains that U.S. manufacturers lead the way in productivity and cost control, making this fair a win/win for both OEMs and manufacturing contractors.
Let’s fix this job problem ourselves and plan on attending.
For more information and to register, go to NTMA.org and click on “Learn More” in the item “Re-Shore.”
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