2/20/2012 3:00:00 PM
HEADLINES
Moser Tells NEFDA: Time for U.S. Companies to Reevaluate Offshore Sourcing
(Left to right) Skip Gallo, Harry Moser and Steve Wilson
It is time for U.S. companies to reevaluate their offshore souring, Harry Moser told the New England Fastener Distributors Association.
Moser, the founder and president of Reshoring Initiative, said “with clear evidence of the fragility of global supply chains, Chinese and other low labor cost country wages rising rapidly, the U.S. dollar declining and oil soaring, this is the perfect time for U.S. companies to reevaluate their offshore strategies and bring some of the sourcing home.”
Numerous U.S. fastener manufacturers could not compete with low wages of Asian companies and turned to outsourcing or closed during the past couple decades.
Prior to Moser’s NEFDA presentation, he met with President Obama and his economic council headed by General Electric chairman Jeff Emmelt. Obama then made bringing back manufacturing in his State of the Union speech.
Moser, a 40-year manufacturing industry veteran and retired president of GF AgieCharmilles, finds companies have offshored “more than what was in their company’s self interest.”
Moser founded
The total cost of ownership of manufactured products may no longer justify outsourcing.
Today things are different, Moser told NEFDA. The wage gap with Japan and China continues to shrink and incremental costs associated with offshoring will largely overcome offshore advantages of recent years.
Moser noted a 2009 Archstone Consulting survey showed 60% of manufacturers ignored the 20% plus cost of offshoring.
The Reshoring Initiative provides a free “total cost estimator” software to compare offshoring and domestic sourcing. Web: ReshoreNow.org
It is time for U.S. companies to reevaluate their offshore souring, Harry Moser told the New England Fastener Distributors Association.
Moser, the founder and president of Reshoring Initiative, said “with clear evidence of the fragility of global supply chains, Chinese and other low labor cost country wages rising rapidly, the U.S. dollar declining and oil soaring, this is the perfect time for U.S. companies to reevaluate their offshore strategies and bring some of the sourcing home.”
Numerous U.S. fastener manufacturers could not compete with low wages of Asian companies and turned to outsourcing or closed during the past couple decades.
Prior to Moser’s NEFDA presentation, he met with President Obama and his economic council headed by General Electric chairman Jeff Emmelt. Obama then made bringing back manufacturing a theme of his State of the Union speech.
Moser, a 40-year manufacturing industry veteran and retired president of GF AgieCharmilles, finds companies have offshored “more than what was in their company’s self interest.”
The total cost of ownership of manufactured products may no longer justify outsourcing.
Today things are different, Moser told NEFDA. The wage gap with Japan and China continues to shrink and incremental costs associated with offshoring will largely overcome offshore advantages of recent years.
Moser noted a 2009 Archstone Consulting survey showed 60% of manufacturers ignored the 20% plus cost of offshoring.
The Reshoring Initiative provides a free “total cost estimator” software to compare offshoring and domestic sourcing. Web: ReshoreNow.org ©2012 GlobalFastenerNews.com
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