September 24, 2013: More #mfg production, but what about more #mfg jobs?
Happy Tuesday! A new survey released by a global consulting firm is making the rounds today, and it says that there’s good news on the horizon for America’s manufacturing workforce. Here’s a write-up from Ed Crooks of the Financial Times:
The Boston Consulting Group (BCG) survey found 21 per cent of a sample of 200 executives of large manufacturers were either already relocating production to the US, or planning to do so within the next two years. A further 33 per cent said they were considering it, or would consider it in the near future.
Why now? Virginia Harrison for CNNMoney lists labor costs, product quality, and proximity to the customer among the reasons some firms are bringing production back.
But are we reshoring the jobs along with all this production? BCG has released surveys that draw similar conclusions about the reshoring movement in the past, as we’ve noted. And, says Nelson D. Schwartz at the New York Times’ Economix blog, we haven’t seen many of the manufacturing jobs lost over the last fifteen years come back:
That phenomenon — more production with fewer workers — is something that often goes unmentioned when advocates like President Obama speak of a manufacturing renaissance that will produce middle-class jobs.
Mr. Schwartz is right. Despite hearing an oft-repeated talking point that trumpets 500,000 new manufacturing jobs in the U.S. since 2010, we’ve seen only 12,000 since January. The Department of Labor’s jobs data dump is coming up in two weeks, and we’ll be updating the #AAMeter -- our running tally toward President Obama’s campaign promise for 1 million new manufacturing jobs by 2017. Keep an eye out for updates!
Elsewhere around the web:
A pretty cool story on a reinvigorated American-made apparel movement from Heesun Wee at CNBC: Manufacturers and merchants are popping up in places like Raleigh, N.C. and Fort Wayne, Indiana. These smaller apparel hubs are not only supporting a new workforce, but teaching workers a skill set that has been nearly lost in the textile and garment industries’ decades-long offshore exodus. You can see the economic promise in bringing them back in New York City’s garment district:
While small hubs' track record in creating apparel-related jobs is nascent and small scale for now, the potential is enormous. NYC's Garment District alone employs 7,100 workers and contributes to an estimated $2 billion annually to the city's economy.
A new tire manufacturing facility in Mississippi is set to roll into the state thanks to Yokohama Tire Corp., The north-american arm of Japanese-based Yokohama Rubber Co. is opening a new tire manufacturing facility, reports the Associated Press. The new tire-making plant will create 500 jobs with future expansion plans raising employment to 2,000 in the town of West Point. State lawmakers approved a total of $130 million in incentives to assist with the project.
For the next few weeks, your buds at the Alliance for American Manufacturing (AAM) will be spreading the good word via Huddle, Politico’s weekday morning newsletter that previews what’s happening every morning on Capitol Hill. Catch this morning’s edition: Click here to sign up.
And now it's time for some legitimate trivia:
Oh, that trivia is most excellent. That's good trivia.
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