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ET Water Systems Managing Director Mark Coopersmith and U.S. Business & Industry Council Research’s Alan Tonelson and Reshoring Initiative found...
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Are -- jobs coming back to US shores.
The US economy slowly gaining momentum finally so.
Our companies turning away from offshoring American jobs joining me now Mark Cooper Smith the managing director ET water systems.
-- Donaldson from the US business and industry council research and Herring closer founder and president of the receipt -- -- I can say the word it's -- new -- -- initiative.
Market gonna start with you your company was in China you came back to the states why.
We did come back to the states.
I joined the company about three years ago.
And we looked at we really going through an entire deconstruction reconstruction of the business so one of the key things that we look that was our supply chain.
Where where the products made where we getting the quality we needed.
-- how are we servicing our customers.
And we did a comparison of Chinese manufacturer where we were making the products and US manufacturing we were really surprised that the results.
The costs were surprisingly close and we then dove in and made the decision to -- shore production from -- -- the US.
All right well what -- I'll turn to you next.
A survey from Boston Consulting show that 48%.
Of manufacturing companies with annual sales above ten billion have reassured.
This a trend.
Definitely what we calculate that about.
50000.
-- 50.
Manufacturing jobs have been -- short just in the last three years.
That's about 10% of the growth in manufacturing in the last.
Three years we and there's other surveys by MIT and by MFG dot com that -- results similar to what you quarter.
-- we'll see this is a big trend why.
I don't see this as they trend at all because the best national level and global level data we have.
Including trade balances.
Including import penetration rates in US advanced manufacturing.
Including.
Global market share for.
For manufacturing.
Is telling us loudly and clearly that for all of these individual anecdotes that can be told about reassuring.
The United States if anything keeps losing competitiveness as they locations -- -- manufacturing.
Mark TU.
But at what she came back what did you experience here in this country.
-- competitive positioning.
So that that's a great question so who.
Let me -- let me preface -- -- little by saying word cut green technology company.
So we focus on helping.
Large water users conserve water.
Through a lot of technology has so we have complicated electronics.
That we communicate to wirelessly.
And through software.
And when.
We came in and looked at our product line and we look -- wanting to innovate quickly to incorporate the best of what Silicon Valley could incorporate.
We were looking for partners that would help us with that so we're really started with -- innovation.
When we wanted to accelerate the pace of innovation to understand what was going on right here in Silicon Valley at the heart of the this great ecosystem of entrepreneurship and technology.
We started there and we collaborated.
With -- a great manufacturing partner that we've been working with now for three years.
To really re launch write and update our products and launch some new and.
-- -- that's around that in -- here profitability did with did help moving back.
So here's what we found we found that the costs were surprisingly close at least for us for where we -- When we incorporated especially costs like transportation.
Rising cost subject Chinese wages and others we were surprised -- the difference was very slight -- But then we started looking at quality.
We looked at just in time manufacturing.
We shipped directly from our manufacturing plant to our customers we get better service we -- the products less.
Our margins have more than tripled so how broad manufacturing back to the US -- can't say Carla that is due to restoring let's.
Alan for a second because these are themes that I've seen in researching this topic.
That transportation costs are through the -- and China's a long way from many people's markets.
-- and -- the cost to China its labor is is has risen dramatically huge delta.
While American wages have flattened out as a result using GE four and -- lots of companies.
Come back into this country do manufacturing here.
Isn't -- the beginning of the trend does -- see a trend there.
No reason Jerry I'm sorry to tell -- but there is absolutely no reason at this point.
To think that there is any significant trend in the making and that these are anything more than drops in the bucket and the -- What's -- Chinese wages for second and even transportation costs.
There's little doubt that production costs and China are going -- nobody denies that although there are big questions as to how much.
But here's what else -- going on in China what everybody seems to miss.
Chinese productivity is going up even faster and everybody knows except it seems when they talk about China.
That when companies got more productive they can absorb higher costs and maintain any.
-- profits jump in here does Allen have a right or is he missing something.
How -- right that the from 50000 people -- looking the flows are about more balanced or even even maybe favour more balance there's going to whopping equity deficit.
OK yeah -- like Taco Bell -- -- is the key fact is.
That -- shoring that was happening in the zero rate three years ago has accumulated 50000 jobs.
And therefore -- can still see that there's net offshoring happening but re shoring is happening in -- -- when you start from zero and you get to something.
That's a trend and the trend will continue in the trend trend will -- apparently it's not ground zero data.
-- -- -- -- -- -- -- -- We're gonna leave it there fascinating conversation.
Thing and dad I guess -- -- will have to wait and see if this is gonna pick up the late momentum.
Let's hope but well let's hope -- well I'm very at -- John my thanks to all of you -- for coming on tonight mark Allen and Harry.
Great conversation thanks so much.
Thank you and now in.
