Quality Magazine

Re-shoring Manufacturing Initiative Gains Momentum

May 7, 2010

IRVINE, CA - The re-shoring initiative launched by the National Tooling and Machining Association (NTMA) and the Precision Metalforming Association (PMA) to bring manufacturing jobs back to the United States is quickly gaining momentum, with numerous member companies announcing they have won back contracts that were previously off-shored, and larger manufacturers disclosing plans to bring production back to the U.S.

The effort will receive a further boost from the upcoming 2010 NTMA/PMA Contract Manufacturing Purchasing Fair: Re-Shoring to Bring U.S. Manufacturing Jobs Back Home, to be held May 12, 2010, at the Hyatt Regency Irvine Hotel in Irvine, CA. About 200 companies are expected to attend. Companies already producing or supplying domestically are also welcome. The next Fair is October 29, 2010 in Mashantucket, CT.

Re-shoring (also called onshoring and backshoring) means bringing lost manufacturing jobs back to the United States by uniting large manufacturers with competitive domestic suppliers. It is a non-protectionist and private sector-driven way to reduce imports (and our trade deficit), increase our "net exports", and create jobs. Going local can reduce a company's Total Cost of Ownership and offer a host of other benefits while bringing U.S. manufacturing jobs back home.

A recent GrantThornton survey published earlier this year found only half of the firms surveyed (49%) found offshoring had produced a positive return on investment. As a result, 59% of companies moving facilities closer to home are locating these operations in the United States.

Ron Wosel, president of Shawnee, KS-based C&R Manufacturing, recently won back a customer who previously moved his sourcing overseas more than a decade ago. "We won this job back because we are able to be cost competitive and our reliability and quality saves our customer money," says Wosel. "We think this message will resonate with other manufacturers, and that's why we are attending the Fair."

Its focus aligns OEMs and large companies with highly competitive and skilled domestic small to medium sized manufacturers that specialize in machined, stamped and fabricated parts, special tooling (dies, molds, jigs, fixtures and gauges) and special machines, ultimately providing a more economical resource for sourcing needs.