Bringing Jobs Back to the USA
Rebuilding America’s Manufacturing through Reshoring
Preview
Book Description
A follow-up to Tim Hutzel's previous book, Keeping Your Business in the USA: Profit Globally While Operating Locally, this book tells the stories of companies that have sent their jobs outside of the USA and the negative effects this had on the quality of their products and services, employees, supply chain providers, and consumers.
Bringing Jobs Back to the USA: Rebuilding America's Manufacturing Through Reshoring reveals the motivation these companies had to offshore their jobs as well as the errors of omission they made by not understanding the true cost of offshoring. Exposing the true cost of offshoring to US organizations and citizens, it supplies concrete suggestions to help government officials and activists prevent offshoring and incentivize reshoring.
The book provides food for thought for businesses currently thinking about sending US jobs to foreign countries. Outlining a roadmap for reshoring using a step-by-step methodology, it provides business leaders with the understanding to make the right decisions regarding reshoring their products back to America.
Table of Contents
THE STORY OF RESHORING
Why Companies Offshore
References
THE HERSHEY KISSES STORY
Why Hershey Made the Decision to Offshore
References
DEVASTATING TRENDS TO OUR ECONOMY AND OUR AMERICAN WAY OF LIFE CAUSED BY OFFSHORING
Five Other Companies That Also Offshored American Jobs
Radio Flyer
La-Z-Boy
Nike
Levi Strauss
Whirlpool
References
Results of Offshoring
Labor Costs
Regulatory Burden Lessened
Safety Compliance
Union Strength
References
THE RESHORING TREND
Five Companies That Brought American Jobs Back Home
Caterpillar
Master Lock
Neutex
General Electric
WindStream Technologies
Conclusion
References
Motivation to Reshore
Quality
Patriotism
Quick Delivery
Shipping Costs
Rising Labor Costs Overseas
Cash
Intellectual Property
Continuous Improvement
Travel
Exchange Rates
Innovation
Conclusion
A DECISION-MAKING MODEL TO RESHORE … OR NOT
A 360° Approach to Making a Reshoring Decision
Who to Involve in Opening Blind Spots
Marketing
Engineering
Operations
Quality
Regulatory
Sales
Customer Service
Warranty
Accounting
Finance
Purchasing
Customers
Phase I: Analyze the Current Offshored Manufacturing Source
Step 1. Determine the True Unit Cost of the Offshored Product
Step 2. Calculate the Offshored Product’s Velocity of Cash©
Step 3. Calculate the Offshored Product’s Cash Conversion Cycle
Step 4. Identify the Intangible and Hidden Issues That the Offshored Product Is Causing
Step 5. Conduct a SWOT Analysis of Having the Product Offshored
Phase II: Select and Analyze the New Onshore Manufacturing Source
Step 1. Select New Manufacturing Source
Lean Methodology
In House or Outsourced
Engineering Design and Manufacturing Process
Manufacturing Equipment
Materials Supply
Labor Availability
Step 1. Post the Position
Step 2. Review and Deselect Unqualified Candidates
Step 3. Send a Questionnaire and Exercise to the Selected Candidates
Step 4. Group Interview
Summary
Step 2. Estimate the Onshored Product’s True Unit Cost
Step 3. Estimate the Onshored Product’s Velocity of Cash
Step 4. Estimate the Onshored Product’s Cash Conversion Cycle
Step 5. Estimate the Intangible and Hidden Issues of Reshoring the Product
Step 6. Conduct a SWOT Analysis of Having the Product Reshored
Step 7. Compare the Current and Proposed Sources
PREPARE FOR RESHORING
Phase III: Prepare for the New Onshore Manufacturing Source
Develop the Hoshin Plan to Reshore
Deploy the Hoshin Plan
MAKING THE DECISION TO RESHORE IS JUST THE BEGINNING
Reshoring Will Not Be a "Piece of Cake"—Many Issues to Confront and Overcome
Scarcity of Skilled Resources
Poor Basic Work Skills
Anemic Supply Chains
Location
Incentives
Right-to-Work States
Increasing Operational Effectiveness with Lean
Creating Your Own Lean Management System
References
LOOKING INTO THE FUTURE
Why It Is Important to Bring American Jobs Back to the United States
Reshoring Pioneers
Next Steps for You
Our Beliefs
Our Motivation
Our Experience
To Community Leaders
To Economic Development Directors
To Religious Leaders
To Manufacturing Leaders
Final Comments
References
Index
Author(s)
Biography
Tim Hutzel was born into a blue collar family in a very small town in southwestern Ohio in 1945. His parents were Depression-era folk who survived by watching their pennies and working hard. Tim entered the workforce at age 14 doing odd jobs such as washing pots and pans at a neighborhood restaurant, operating kiddy rides at a small amusement park, delivering papers, and performing light factory work. Three years later, Tim joined the US Army at age 17 as a volunteer and learned the fine art of field artillery; he spent three years in West Germany helping keep the Russians on the east side of the Berlin Wall. Fifty plus years later Tim has accrued experiences that include three university degrees, 21 years employment at GE Aviation, 20 years self-employment helping businesses improve themselves, writing a book on how American companies can survive in the United States, serving as adjunct professor to Miami University’s Schools of Engineering and the Farmer School of Business. And now, Tim has written this book with his good friend, Dave Lippert. Tim’s age says retirement, but his actions prove differently; he continues to be involved with American businesses, helping them improve their operations and profitability.
Dave Lippert grew up in southwestern Ohio in an industrious family that founded a manufacturing business in 1907, making and selling industrial casters, wheels, and carts. Currently, Hamilton Caster is in its fourth generation of family management. Dave spent his summers working in the family business and experiencing the sights, sounds, and smells of the manufacturing floor. He earned his engineering degree at the US Air Force Academy and after serving six years in the Air Force, returned to Hamilton Caster to work under his dad, then the president. In 1995 Dave succeeded his father to become the company’s fifth president, the position he now holds. Dave led his company to adopt the Toyota production system philosophy by creating the Hamilton Caster management system, a spin-off of what is commonly known as a Lean management system. In 1996, Hamilton Caster was awarded first place among Ohio small businesses for team excellence based on early experiences with Lean. Dave is unwaveringly dedicated to his family, church, company, community, and helping American businesses reach their full potential.
Reviews
Hutzel and Lippert bring a precision of presentation that one would expect of master practitioners in manufacturing. ... I encourage you to read this book not only as a primer on reshoring, but also as a point of inception for your engagement in the movement. ... How can you encourage decision makers and influencers to rally for reshoring? In essence, how can you make a difference?
—Chuck Proudfit, President of At Work on Purpose and SkillSource Consulting, Cincinnati, Ohio, USA