(Newswire.net — January 16, 2014) Anaheim, CA — Most Americans were upset as jobs were lost and moved overseas. The quality of products and services suffered greatly. Now there is a new trend starting to take hold in the nation; Reshoring.
What is ‘Reshoring’?
Reshoring is the reversal of outsourcing; the transfer of a business operation back to its country of origin. Reshoring can happen in any country, fortunately America is leading the way in bringing business back home. In this article, we will focus on the American reshoring, also known as the “Made in U.S.A.” movement.
Why is the “Made in U.S.A.” movement so important?
The first big reason reshoring is important is because it brings jobs back to America. Reshoring means bringing business back home and that business means the demand for more labor. In 2013, unemployment went as high as 8 percent, according to the Bureau of Labor Statistics.
Every time a company decides to ‘reshore’, it means more jobs are coming back home. Along with the increase for labor, reshoring can lower overall costs of operating a company. Rising labor costs in other parts of the world as well as the cost of shipping your products back and forth overseas or across borders can be a huge burden on a company, as well as a waste of time. This burden can wear away the profit of outsourcing to another country. Import tax also adds to this burden. With products being developed and made at home, there is no need for outrageous shipping costs, and the wait time for your product to arrive back in the states simply disappears.
Reverse Outsourcing?
Another problem to consider about outsourcing is that your product is overseas or across borders. If you need to change something on your product, you have to communicate exactly what you want to someone located far away from you, or take a long journey. Communication errors can be common when trying to explain to someone in another country what you need done to your product. The response time is longer than it would be if you were handling a product in house. Also, the time it takes for your finished product to hit markets is increased, again, due to shipping the product overseas or across borders to its desired market.
Another aspect of the “Made in U.S.A.” movement to consider is people want to buy products that were made here. ”78 percent of Americans would rather buy the American product,” according to a new nationally representative survey by the Consumer Reports National Research Center. People really want to buy American. They don’t just want to buy American; they are proud to buy American, because they know that it means more jobs, a better economy, and better quality. Americans care about reshoring and it shows.
American Made Quality
Just like reshoring, you can outsource anywhere. When people talk about outsourcing, they immediately think China. While China is a big recipient of outsourcing, they are not the only country. India, Mexico, and Bangladesh are just a few of the other countries that take on these manufacturing jobs.
Consumers prefer to buy American Made Products, and large companies are starting to catch the reshoring fever. They can bring back jobs to the United States, and reduce overall cost. For example, Whirlpool is moving washing-machine production to a plant in Clyde, Ohio, from one in Monterrey, Mexico. Buck knives brought its knife production back from China to Idaho. General Electric opened a $38 million manufacturing plant in Louisville, Kentucky, so they could relocate a plant from China.
The time is now to bring jobs back home, and bring back pride and the ability to say, “This was made in the U.S.A.”
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