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Reshoring in the News

Decoupling & Reshoring

What is the current status of a “#decoupling” process? Is change happening now, in 6 months, or part of a much longer-term plan?

Are some industries going to #restore faster than others? which ones?

#Reshoring in the age of coronavirus: what are some of the #hurdles in #leaving #China?

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In-Depth: The Case for a U.S. Industrial Policy

Listen to Rosemary Coates’ interview with Jessica Stone of Stansberry Insider Weekly. Starting at 6:58:00, she discusses the need for a U.S. Industrial Policy now. The Corona pandemic has exposed the dependence of America on foreign manufacturing, especially pharmaceuticals made in China. It is important for America to develop an industrial policy that supports critical and strategic industries.

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America Doesn’t Have an Industrial Policy

Americans’ health and safety are at stake and now is the time to consider a national industrial policy to support the needs of our citizens.

China has the “Made in China 2025” industrial policy aimed at supporting the development of advanced manufacturing technologies. Germany’s industrial policy aims for comparative advantage in the production of high-quality, internationally competitive manufactured goods. Japan’s industrial policy was devised after WWII to promote industrial development by cooperating closely with private firms. Mexico’s industrial policy objective is to liberalize the industrial sector to increase industrial productivity and competitiveness.

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Reshoring: The Hottest Trend in Business

Reshoring is the practice of transferring a business operation that was moved overseas — typically to a low-cost manufacturing — back to the country from which it was originally relocated. The goal of reshoring is to rebalance a country’s economy, create new jobs and cut its trade deficit.

Due to COVID-19, trade wars and tax cuts, businesses are now rethinking their global manufacturing and sourcing strategies. But it’s not as easy as it seems. Reshoring is complicated and can be costly. Leaving overseas operations can involve required pay-outs to employees, regulatory requirements and write-off of tools and machinery. Returning to your home country may be tough, too. You may have to develop a whole new supply base and deal with environmental, health and safety restrictions that are unexpected.

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What Will Happen to Hong Kong?

President Trump has announced that the new Chinese national security law will require the United States to remove Hong Kong’s special economic status granted under American law.

Hong Kong has always been one of my favorite cities on earth, with its wonderful airport, gorgeous views of Victoria Harbor, the Star Ferry to Kowloon, and the bustling business environment. The energy level in the city is truly remarkable.

If you are doing business in Asia, you are probably using Hong Kong as the airport to make flight connections, manage cargo consolidations, an efficient seaport, and for global financial operations.  Since WWII, Hong Kong has been an established city for international business and financial headquarters.

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Reshoring in the age of coronavirus: beware of the hurdles in leaving China

Companies cannot expect to simply pack up shop, lock the doors, turn out the lights, and move back home, writes Rosemary Coates

We are in a global crisis. It’s a matter of life and death. There are still shortages of supplies and equipment around the world including acute shortages in America. We know there is plenty of manufacturing capability around the world for consumer goods, PPE, testing equipment, and medical devices such as ventilators. But flexing global supply chains is complicated and medical equipment is highly regulated by all governments. The results of inflexible global supply chains are overages of some supplies in some areas and shortages in others.

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COVID-19’s Impact on Reshoring and the Supply Chain

The trade war and disruption from the coronavirus are spurring companies to rethink their global supply chains, manufacturing processes, factory design, automation and workforce needs. In this episode, Alan Rooks, Editor in Chief of Manufacturing Engineering magazine, talks with Rosemary Coates, Executive Director of the Reshoring Institute, about how the trade war and COVID-19 have affected manufacturers worldwide, why it has more companies considering returning their manufacturing to the U.S., the hurdles and issues to leaving China, and what decision-makers should be thinking about when planning for manufacturing in the future.

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Business Facilities Webinar: Rethinking the Global Supply Chain

Rosemary Coates, Executive Director of the Reshoring Institute and the best-selling author of five books on supply chain management, discusses the impact of the COVID-19 pandemic on the global supply chain, and share how these disruptions may accelerate a ‘local for local’ strategy resulting in more reshoring of manufacturing.

Manufacturing Tomorrow

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Global Supply Chains In The Wake Of COVID-19 In Socially Critical Industries – Is It Time To Reshore?

As countries, economies, and businesses adjust to life in the COVID-19 era, many governments have started to ask questions about the wisdom and longer term implications of allowing key components of socially or economically critical products like pharmaceuticals, medical devices, and defense products to be sourced beyond domestic borders.

Read more at National Law Review >>

For Global Supply Chains the Worst Is Yet to Come

Many companies, especially small and medium-sized businesses do not have well-developed alternate suppliers outside of China, and finding new suppliers, qualifying them, and scheduling production is no easy task.

Read more at Supply Chain Management Review >>

Coronavirus and Your Global Supply Chain – Part 2 – Rising Panic

We have been helping companies with their global tariff strategies because of the trade war and the resultant economic emergency. The Coronavirus is causing a different kind of economic crisis that is even more urgent.

Read more at Supply Chain Management Review >>

A look at the Coronavirus and your global supply chain

Propelled by the Trump Administration Trade Wars, many companies have already left China for other Asian manufacturing locations. But – there are no guarantees that the virus won’t spread to these new locations.

Read more at Logistics Management >>

Supply Chain Turbulence in the Trade Wars

Rosemary Coates is Executive Director of the Reshoring Institute, President of Blue SIlk Consulting and an best selling author well known for her knowledge in the supply chain arena. She joins hosts Lew Weiss and Tim Grady to discuss the trade wars and its impact on businesses across America.

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Reshoring rosemary coates

Is it Time to Bring Manufacturing Back to the U.S.?

January 2019 – IHA got acquainted with reshoring advocate Rosemary Coates, who will explain the latest in tariff policies that can move a company to bring production back to the U.S. in her presentation at the 2019 International Home + Housewares Show. At the Show, the Innovation Theater will feature 21 presentations over four days. Topics will include design innovation, smart home, digital commerce and global market trends.

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Reshoring from china

4 Considerations for Western Companies That Want to Leave China

January 2019 – Are you planning to leave China? With nearly 6,000 Harmonized Tariff Schedule item classifications identified for the imposition of a 10% to 25% penalty tariff on imports from China, it is time to consider all your options. The future of new tariffs and penalties is uncertain.

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Reshoring cma

Rosemary Coates covers US Manufacturing

November 2018 – Join host Penny Rosema as talks with Global Supply Chain Consultant, Rosemary Coates as they cover the topic of US manufacturing and reshoring. Rosemary is the Executive Director and Chairman of the Board at Reshoring Institute.

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Reshoring fabtech

What we talk about when we talk about manufacturing: FABTECH panel

November 2018 – American manufacturing is back—big time. Automation, the supply chain revolution, and a C-suite refocus on long-term planning bode well for this industrial renaissance, a panel at FABTECH explained here this week. But trade wars and a shortage of workers will likely lead to inflation and a recession—a downturn that might only be an economic hiccup, or might not.

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What Is Your Import Tariff Strategy?

September 2018 – Are you leaving important tariff response strategy up to your import operations staff? It’s time for executives to lead. Nearly 6,000 Harmonized Tariff Schedule (HTS) item classifications have been identified for a 25% penalty tariff on imports from China. Even though some products have escaped the penalties so far, the future of new tariff classifications is uncertain. Will your products be next? What is your strategic response to new penalty tariffs?

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What’s Your Apparel and Footwear Tariff Strategy?

By Rosemary Coates, Reshoring Institute – 09/11/2018
What should your company be doing to avoid or mitigate penalty import tariffs? Nearly 6,000 Harmonized Tariff Schedule (HTS) item classifications have been identified for the imposition of a 25 percent penalty tariff on imports from China. Even though many apparel and footwear classifications have escaped the penalties so far, the future of new tariff classifications is uncertain. Recently targeted products include sporting goods and some apparel items. Will your products be next?

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Exit Planning for Reshoring

September 2017 – Developing a strategy for leaving a foreign location is a crucial part of reshoring that involves re-engineering processes, automating production and understanding all associated costs.

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‘Offshoring’ expert says ‘reshoring’ vital to saving middle class

December 2016 – A push is underway in the Rio Grande Valley to promote Bi-National Economic Development, or BiNED, which aims to develop advanced manufacturing — and the high-paying jobs it brings — on both sides of the border.

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Manufacturing is Leaving China – but is it Coming to the U.S.?

June 2016 – The reshoring phenomenon is real. It’s driven by rising labor costs in China, and the increasing risk of maintaining long supply lines for western markets. What can companies do to bring that production back to the U.S.?

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Reshoring could spur demand for trucking

March 25, 2016 – A growing movement to bring so-called “advanced manufacturing” back to the U.S. – a strategic effort dubbed “reshoring” or sometimes “nearshoring” – could significantly ramp up truck capacity demand as well, according to two experts.

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Lessons in reshoring: The turnaround at GE’s Appliance Park

December 30, 2015 -Bright light reflects off the shiny exterior of row upon row of water heaters that stand like sentinels in Building 2 of General Electric Co.’s Appliance Park. The products soon will be shipped to retail stores such as Lowe’s, where they sell for about $1,000. The ordinary household product is part of an extraordinary turnaround story at one of Louisville’s largest employers and reflects the growing trend of reshoring: After decades of moving jobs to low-wage countries, American manufacturers are moving some jobs back to the U.S.

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Reshoring, Bringing Manufacturing Jobs Back to U.S.

December 9, 2015 – Many American companies that have taken their manufacturing jobs overseas in favor of cost-saving affordable Chinese labor have either begun to bring some of those jobs back to the United States, or are seriously thinking about doing so, according to a consultant to the supply chain industry and director of the Reshoring Institute……

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Reshoring Opens Opportunities for Diverse Suppliers

December 4, 2015 – Rosemary Coates, Founder of Blue Silk Consulting (WBE) and The Reshoring Institute, recently shared insightful information about how reshoring initiatives present opportunities for diverse suppliers, including woman-owned, minority owned and veteran-owned businesses. Learn more about how The Reshoring Institute supports the diversification of US supply chains in this guest blog authored by Ms. Rosemary Coates.

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60 seconds with Rosemary Coates, Reshoring Institute and the University of San Diego

December 1, 2015 – At the Supply Chain Outlook Summit, you talked about your roles as a consultant, advising clients on their outsourcing strategies and also as the executive director of the Reshoring Institute, advising companies on how to bring some of that manufacturing back to North America and the United States. In a sense, you’ve seen them going and coming. How do you describe what is going on in the market today?….

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China Trade and China Tariffs

For businesses in China, breaking up is hard to do

August 21, 2015 – The hottest trend in U.S. manufacturing is reshoring, and this means big opportunities for plastics manufacturers. According to a recent study by Boston Consulting Group, 54% of all U.S. companies with more than $1 billion in revenues are planning or considering reshoring at least some of their manufacturing. Wal-Mart’s U.S. manufacturing initiative promises to buy $250 million in U.S.-made consumer goods over 10 years. All of this reshoring will drive the need for plastic parts and products.

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Skillfully Managing a Manufacturing Reshoring Project

December 23, 2014 – There’s more involved in successfully reshoring a foreign manufacturing operation back to the U.S. than simple cost comparisons. These initiatives have many moving parts and require careful planning. So where should a company begin?

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What Happens When You Decide to Leave China?

December 8, 2014 – Reshoring is the hottest trend in U.S. manufacturing. According to a recent study by Boston Consulting Group, 54 percent of all United States companies over $1 billion in revenues are planning or considering bringing at least some of their manufacturing back to the U.S.

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FAILURE ALERT: What Happens When Reshoring Goes Wrong

November 26, 2014 – A million things can go wrong every day in business. So when companies consider a new, big project like Reshoring they need to be especially vigilant and prepared. We want to see manufacturing come back to America to rebuild our middle class and strengthen our economy. But it’s not as simple as shuttering the production plant in China and recreating it at home. Reshoring is a complicated project with lots of moving parts and potential points of failure.

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How to Ensure Your Reshoring Project Won’t Fail

June 12, 2014 – Consider Otis Elevator. OE is one of many U.S. manufacturers, including GE, Whirlpool and NCR, which announced they were bringing factories back to the U.S. from China, Mexico and other countries and whose efforts did not go well.

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How Will You Know When to Reshore? Five Factors to Consider

February 27, 2014 – There are many factors to consider when “rebalancing your manufacturing,” reshoring some operations to the U .S. and leaving others in place to serve the growing Asian market. Several of the important factors in the original offshoring decisions have dramatically changed.

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How To Avoid a Failed Reshoring Project

June 09, 2014 – Rising costs in China and shifting global economic forces are pressuring companies to reevaluate their global manufacturing strategies and consider localizing their operations. We’ve all heard the latest buzzwords: “reshoring,” “onshoring,” nearshoring and others. Some companies have started the process and have reported success. But many other companies are struggling with the reshoring.

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How Will You Know When to Reshore? Five Factors to Consider

February 27, 2014 – There are many factors to consider when “rebalancing your manufacturing,” reshoring some operations to the U .S. and leaving others in place to serve the growing Asian market. Several of the important factors in the original offshoring decisions have dramatically changed.

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Will You Know When to Leave China?

November 1, 2013 – Considered the “workshop of the world,” China is losing some of its cache’ as an unstoppable manufacturing powerhouse. Rising labor and energy costs are forcing manufacturers just like you to reconsider locating operations to even lower cost labor countries such as Vietnam and Indonesia.

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