Outrun Change

We need to learn quickly to keep up with the massive change around us so we don't get run over. We need to outrun change.

Archive for the tag “reshoring”

More good stuff on the open frontiers – 12-30-13

The change taking place around us is thrilling and confusing. The best way I have to put this in some sort of order for myself is to compare with the open frontier of the US west after our Civil War – The education, energy, space, and publishing worlds are each a new frontier and those frontiers are wide open.

A few articles to give some form to that open frontier:

Cyborg telemarketing

Three articles on the increasing use of computers making the pitch on cold call telemarketing:

Read more…

Reshoring – textile plants starting to return

Textile mills are coming back to the U.S. but not bringing many jobs with them.

So reports The New York Times:  U.S. Textile Plants Return, With Floors Largely Empty of People.

The article tells of one company that switched from buying textiles from a company in India to a company in South Carolina.

Read more…

What wage inflation looks like in China

The Economist provides good background on what the labor market is looking like in China – The end of cheap China.

I’ve commented earlier on the changing cost structure in China. This article gives some specific numbers. Read more…

In a paragraph, here’s why we will see a lot more reshoring

Mark J. Perry calls attention to a company that makes bracelets and charms for colleges and sororities – Manufacturing Boom in Michigan, Partly Due to Reshoring; U.S. Factories are Competitive Again

The company brought its manufacturing back from China.

The reason they did so as described by Prof. Perry, is the same reason there will be a lot more companies that do so: Read more…

Reshoring – huge opportunity if we want it and a skill-set challenge we can overcome

Manufacturing jobs keep coming back to the U.S.

Mark Perry points to an article in Financial Times, Business returns to US as Asia loses edge (free registration required).

Rapidly rising wages in China are changing the equation on where it makes sense to locate plants.  Here’s what that picture looks like, in a comment from Mr. Bruce Cochrane, who opened up a furniture plant in North Carolina. The FT article says:

Read more…

More on Reshoring

Mark Perry at Carpe Diem is paying attention to the reshoring trend.  Some recent posts:

Re-Shoring: Outsourcing To China Goes Into Reverse

Housewares company moves production from China back to the U.S.  Specifically Union City, California. (California! 34 miles from San Francisco?)

Reason?

Read more…

Opportunities and challenges in China

Walter Russell Mead is travelling in China. As all travelers know, this produces lots of insight. I still cherish the learning time I experienced during a number of overseas field audits for a client. But I digress.

In Chasing China Up The Food Chain, Mr Mead says:

The other day I was looking for a pair of gym shorts in Guangzhou and stopped at a sporting goods store. I found some — with a label proudly advertising “Made in Thailand.”

I’ve long read that manufacturers looking for the lowest cost are now building in Vietnam and Cambodia. That is a very serious problem for China.

The solution? Read more…

Reshoring

Mark Perry points out an article about a company called Taphandlers that moved their production to the US from China because the cost advantage had disappeared.

The post: “Back in the USA” –Seattle Manufacture Provides A Lesson on Reshoring. Expect More of It. Lots More.

Reasons summarized: Read more…

What is reshoring?

Reshoring = Unwinding offshoring.

Or, bringing jobs back to the US that previously had been moved overseas.

There isn’t much reshoring taking place, yet it is happening.  It goes against conventional wisdom of what is happening in the U.S. economy so it is something we ought to ponder.

I’ve been reading for some time that China has lost its place as the low-cost producer.  Manufacturers seeking the lowest cost are going to Vietnam and other places in Asia.

This has changed the economics of offshoring.

Read more…

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