1st Edition

Bringing Jobs Back to the USA Rebuilding America’s Manufacturing through Reshoring

By Tim Hutzel, Dave Lippert Copyright 2014
    245 Pages 36 B/W Illustrations
    by Productivity Press

    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.

    Watch the authors discuss how manufacturing and jobs can be shifted back to the USA.

    https://youtu.be/EwQf50rdlFA

    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
    Micro- and Macroeconomic Issues
    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

    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.

    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