INTERNATIONAL AND SPECIALIZED TRANSPORT
■
AUGUST 2013
SC&RA COMMENT
53
Depending on what you’re reading or who you’re
listening to, an emerging series of manufacturing
trends increasingly point in the direction of the United
States. Whether or not a “manufacturing renaissance” is on the
horizon in the States remains to be seen – a topic of stiff debate in
consulting circles the industry over. What can be derived from this
conversation is the indisputable arrival of the latest catchword in
the world of import and exports: re-shoring.
Also referred to as in-sourcing and near-sourcing, the concept
of establishing or re-establishing a domestic base of operations
in the USA and/or North America seems to be catching on. With
names like Apple, Motorola, Lenovo (China) and Wal-Mart already
digging in, it would seem that both supporters and critics alike
should take note of what is being labelled in some discussions as a
“paradigm shift” across the Atlantic.
Though it isn’t yet clear whether re-shoring is simply a supply
chain realignment or something more significant, certain indicators
suggest this shift resembles a movement that is just beginning to
reveal its potential as a long-term option to erratic international
labour costs. Particularly with manufacturers who stand to profit
from shorter supply lines and reductions in transportation costs
and inventory, establishing a production facility in the USA aligns
foreign companies more efficiently with often-whimsical American
consumer demand.
Mounting international concerns over intellectual theft of
property, predominantly among high-tech manufacturers, has also
begun to lend credibility to the re-shoring trend. In addition, the
swift rise of additive manufacturing, or 3D printing, has allowed
American manufacturers the luxury of producing particular
components on an as-needed basis, rather than having to wait
around for shipments.
Some analysts refer to current data suggesting that much of this
“renaissance” is more of a publicity grab by companies looking to
gain commercial traction and government incentives – citing that
COMMENT
Joel M Dandrea
re-shoring is big on assembly, and small on manufacturing. But
whereas opponents highlight this alleged political bluster, especially
from the increasingly scrutinized tech sector, supporters point
out that, regardless of the eventual size and scope of the shift, this
conversion will undoubtedly alter how goods and material move
around the world.
Economic potential
Job creation, in relation to re-shoring, is expected to see its
first noteworthy gains in the USA around 2015, with continual
escalation thereafter. Proponents of re-shoring emphasise that
pedestrian job-growth numbers at present are simply a result of
the transition – while companies work through the early stages
of bringing back production. Current data suggests that the full
economic potential for companies (and their employees) who
establish operations on American soil will be realised as the benefits
of cheaper electricity begin to surface in connection with a surge
in domestic oil and natural gas production. As one analyst put it:
shippers will notice that North America is still the largest consumer
market in the world, and that sourcing there might end up being a
path of least resistance.
If it is any indication of the future, US auto makers, as well
as much of their foreign competition, have begun to set down
roots and move production to Mexico and the USA. Not only will
they enjoy tax incentives and a more competitive labour market,
but supply chain disruptions will be heavily reduced and easier
to manage. Influential names like General Electric, Whirlpool
and Caterpillar have also moved considerable portions of their
manufacturing operations to North America.
How companies around the world respond to the re-shoring
trend will emerge in time. The success of this shift, especially for the
host countries, will depend heavily on how realistic the economic
advantages of producing there remains for manufacturers, and how
the rest of the world chooses to competitively adapt.
■
Local manufacturing
WHO’S WHO
SPECIALIZED CARRIERS
& RIGGING ASSOCIATION
EXECUTIVE VICE PRESIDENT
Joel Dandrea
5870 Trinity Parkway, Suite 200
Centreville, Virginia, 20120, USA
Tel: +1 (703) 698 0291
Fax: +1 (703) 698 0297
CHAIRMAN
Michael Battaini
Sheedy Drayage
San Francisco, CA, USA
PRESIDENT
Ron Montgomery
Intermountain Rigging & Heavy Haul
Salt Lake City, UT
VICE PRESIDENT
Alan Barnhart
Barnhart Crane and Rigging
Memphis, TN
TREASURER
Delynn Burkhalter
Burkhalter
Columbus, MS
ASSISTANT TREASURER
Bruce Forster
Rigging Gear Sales
Dixon, IL
ALLIED INDUSTRIES GROUP
CHAIRMAN
David Wittwer
, Hays Companies
Salt Lake City, UT
CRANE & RIGGING GROUP
CHAIRMAN
David Cowley
, TNT Crane & Rigging
Longview, TX
LADIES GROUP CHAIRWOMAN
Cathy Moore
, NBIS
Atlanta, GA
TRANSPORTATION GROUP
CHAIRMAN
Geary Buchanan
Buchanan Hauling & Rigging
Fort Wayne, IN
SC&R FOUNDATION
OFFICERS
PRESIDENT:
Robert Moore
NBIS
Atlanta, GA
VICE PRESIDENT:
Stephanie Bragg
Bragg Companies
Long Beach, CA
TREASURER:
Jim Sever
PSC Crane & Rigging
Piqua, OH
