2. Key Highlights
▪ New trend is shifting outsourcing's centre of gravity a wee bit from
India and towards North and South America
▪ Creating jobs in the US
▪ Infrastructure is best in class and cheaper than low-cost global
locations
▪ Cost benefit of 20% offered by tier-2 cities in US compared to tier-1
US cities
▪ US (certain cities) is cost-wise only a little higher, but the value it
generates is significantly higher
3. Economic, Financial and Mathematicaldriven effort
▪ U.S. manufacturing jobs were once the backbone of the American economy, they
began declining around three decades ago. Lately, though, that trend appears to be
slowly reversing for a pile of reasons.
▪ Just a few:
– Labor costs are rising overseas,
– High energy and
– High transportation costs
▪ Above factors often offset any labor savings that do exist, and U.S.-specific skill sets are
increasingly in demand.
▪ Plus, bringing back jobs — what experts call “reshoring” or “insourcing” — is a great way
to snag some good, patriotic press.
▪ Despite plenty of signals, we are on our way to a recovery
▪ Unemployment rate remains stubbornly high … and as a result, any company that
demonstrates a concerted effort to create or bring back jobs is applauded.
4. Right selection of a location
▪ Wal-Mart Stores Inc, has been promoting a patriotic new image in
recent months.
▪ Relentless insistence on cost-cutting, now is urging at least some
production back.
▪ Manufacturers are realizing they can profitably produce certain
goods at home that they once made offshore.
▪ Wal-Mart benefits from this reshoring phenomenon
– Able to buy those goods closer to distribution centers and stores
– Lower shipping costs
– Gaining goodwill by selling more U.S.-made products.
5. Initiatives towards Reshoring or
Insourcing
Source: Investor Place
▪ Ford (F) first made headlines in 2011 when it struck a four-year labor
agreement that added 12,000 new U.S. manufacturing jobs
▪ More recently Ford has been pouring money into its Flat Rock plant in
Michigan, where the company will build the all-new 2013 Ford Fusion —
recently named “Green Car of the Year.” This is the first time the car will be
built in the U.S.
▪ Earlier in April, the company announced it was starting the hiring of 400
new employees for Flat Rock, part of a 1,400-worker addition announced
back in December 2012. For all of 2013, Ford plans to add 3,500 hourly jobs.
▪ Increasing Employment in US was also initiated by below companies
–
–
–
–
Caterpillar
Apple
Google
General Electric
8. Patriotic spending does a lot more than
you think.
▪ The Job Creation Equation
– If every American spent an extra $3.33 on U.S.-made products, it would create
almost 10,000 new jobs. And, if every builder used just 5 percent more U.S.made products, it would create 220,000 jobs.
▪ Conservation
– Importing countries shipping their materials overseas to the U.S. is an added toll
on petroleum usage and increases unnecessary emissions in our atmosphere.
▪ Democracy
– By choosing to buy U.S.-made products one is supporting democracy.
▪ Recycling Currency
– When you buy U.S.-made products, the proceeds remain in the U.S. economy.