Recent days have produced a steady drip, drip, drip of good tidings about new jobs on America’s factory floors. Apple, Lenovo, LG Chem, and now Daimler AG have all recently said they plan to add manufacturing jobs in the US. President Obama hopes it’s a sign of the times, but economists say it’s, at best, a nascent trend.
Last week, Apple said it is investing $100 million to create new manufacturing jobs in the US, following similar announcements by fellow-electronics makers Hewlett-Packard and Levono Group and battery company LG Chem. On Monday, with President Obama in attendance, Detroit Diesel Corp., which makes heavy-duty diesel powertrains for the commercial truck market, said it would expand its line of transmissions and turbo chargers – investing $128 million and adding jobs to its Detroit-area plant.
“That means more work. That means more jobs and more products stamped with the stamp ‘Made in America,’ ” Mr. Obama said at the Detroit Diesel plant, which is owned by German conglomerate Daimler AG.
This is good news for the communities where the jobs are incoming, but economists caution that manufacturing is not likely to rebound to levels of 20 years ago – at least not anytime soon.
Choosen excerpts by Job Market Monitor from
It moved half its production to China to keep costs down, but eight years later one company is bringing production back to Britain. It’s another example of the backshoring trend that has seen many European manufacturers relocate their business back home. Caldeira is a cushion-making business headquartered in Merseyside, Northern England. Since 2004 it has … Continue reading»
Service companies have been sending jobs abroad in large numbers the past decade to cut labor costs — a trend that accelerated in the recession and is expected to continue the next few years before slowing after 2016. About 663,000 large-company jobs in information technology, human resources, finance and purchasing — the category that includes … Continue reading »
Apple Inc is planning to bring back some of its production of Mac computers to the United States from China next year, Chief Executive Tim Cook said, according to a report published Thursday. The company will spend more than $100 million to build the computers in the United States, Cook was cited as saying in … Continue reading »
Business practices are prone to fads, and in hindsight, the rush to offshore production 10 or 15 years ago looks a little extreme. The distance across the Pacific Ocean was as wide then as it is now, and the speed of cargo ships was just as slow. A lot of the very good reasons for … Continue reading »
U.S. manufacturing is in a period of resurgence, and while it is too early to say if the positive momentum has staying power, the sector’s revival is being aided in part by the return of production to the United States that had been outsourced to lower-wage rate locations overseas, particularly China and developing Asian economies … Continue reading »
New evidence on the relationship between offshoring and polarisation In a new working paper, Lindsay Oldenski documents an empirical link between offshoring and the polarisation of the US labour market (Oldenski 2012). This study, which will be presented in November at both the Empirical Investigations in International Trade conference in Santa Cruz and the US Department of … Continue reading »
Indian companies operating in 40 American states have invested over USD 820 million in manufacturing facilities in the US, creating thousands of jobs, according to the 2012 India Business Forum (IBF) survey. The survey “Indian Roots, American Soil: Adding Value to US Economy and Society”, released by the Confederation of Indian Industry (CII) at a … Continue reading »
Chinese conglomerates, on a mission to expand their global footprint and avoid “anti-dumping” tariffs, are shifting more of their production to America. In the United States, cash-strapped states desperate for revenue and jobs, are rolling out the welcome mat for foreign companies that can guarantee both. More Chinese manufacturers have been launching their own U.S. … Continue reading »
More than a third of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the United States from China or are considering it, according to a new survey by The Boston Consulting Group (BCG). Decision makers at 106 companies across a broad range of industries responded … Continue reading »
Kannan Ramanujam, president of a well-known multinational IT company headquartered in the US is in the process of preparing a SWOT analysis for his company’s new operations. The choice is between offshoring its activities and utilising a third-party vendor. The company has offshored most of its service delivery processes, both directly by setting up its … Continue reading »
Nearly six million factory jobs, almost a third of the entire manufacturing industry, have disappeared since 2000. And while many of these jobs were lost to competition with low-wage countries, even more vanished because of computer-driven machinery that can do the work of 10, or in some cases, 100 workers. Those jobs are not coming … Continue reading »
Edwin Keh, a lecturer at the Wharton School at University of Pennsylvania, told WWD: “In the last couple of years, chiefly in the relationship of the U.S. dollar to the Chinese renminbi, it became less. Coupled with stubbornly high oil prices, suddenly the question became why take on so much risk to offshore when you … Continue reading »