Is Apple Prepping a ‘Made in USA’ Boom?

December 4, 2012 by Leave a comment

It could hinge on whether it picks Intel to make more chips for it

Dec 4, 2012, 9:42 am EST  |  By Brad Moon, InvestorPlace Contributor

Two potentially huge Apple (NASDAQ:APPL) items hit the radar in quick succession over the past few days.

First came rumors that the company was in talks with Intel (NASDAQ:INTC) to replace Samsung as the processor supplier for its mobile devices. Then, as the first shipments of Apple’s new iMac PCs arrived, reports rolled out that at least some of them bore an “Assembled in USA” sticker. CEO Tim Cook rose to prominence at Apple for moving production to China, but could the company be on the verge of a shift back to “Made in America?”

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If Intel manages to score the coup of becoming the chip supplier for Apple’s mobile devices, that would be a big story for both Intel and U.S. manufacturing. It was only weeks ago that Apple was supposedly in talks with Taiwanese chipmaker TSMC(NYSE:TSM) about the possibility of replacing Intel CPUs in its PCs with TSMC chips based on ARM (NASDAQ:ARMH) architecture.

Intel CEO Paul Otellini (the guy who brought Apple into the Intel fold but failed to break into the mobile market) retires, and all of a sudden Apple and Intel appear to be making up for lost time. With most of Intel’s chip fabrication plants in the U.S. (including factories in Oregon, New Mexico and Arizona), domestic manufacturing would benefit tremendously. Apple sold 43 million iOS devices last quarter alone — that’s a lot of chips.

Then there’s the story of the “Assembled in USA” iMacs that’s burning up the tech sites right now. Some (but not all) of Apple’s latest iMacs have been arriving on doorsteps adorned with the usual “Designed by Apple in California” message. But instead of “Assembled in China,” they’re marked “Assembled in USA.”

The FTC has very specific rules about how to qualify for that label. To comply, Apple has to be doing much more than just screwing bases onto cases. A factory somewhere in the U.S. has to be building these things.

How could you justify assembling a computer in the U.S. if you can pay ridiculously low wages in China? First of all, those low wages aren’t as low as they used to be. According to The Atlantic,they’re five times what they were in 2000 and expected to continue rising at the rate of 18% per year. At the same time, U.S. labor productivity has risen, while U.S. manufacturing wages over the past five years are now back at the level they were in 2000, adjusted for inflation.

Earlier this year, The New York Times did the math and calculated that if Foxconn workers were paid equivalent U.S wages, it would add $65 to the cost of an iPhone. On a $649 device (the price of a base iPhone 4S at the time) with an estimated materials cost of $203, this would require Apple to either hike prices or bite the difference, cutting into its margins significantly.

However, an iMac is much more expensive. The cheapest is $1,299, so a potential uptick in labor costs may be less noticeable. And then there’s its size.

To get a sense of what it must cost Apple to ship one of these all the way from China, I tried an experiment using FedEx‘s (NYSE:FDX) shipping calculator to compare the cost of shipping a 1.4-pound box (iPhone) and a 42-pound box (27-inch iMac) from Foxconn in Shenzhen to the FedEx hub in Memphis. The result: $448.732 vs. $2,620.72.

Obviously, Apple isn’t paying anything near the rate Joe Public would, and it also uses other shipping companies. But the point is clear.

Shipping an iMac costs six times what it costs to ship an iPhone. If a worker at Foxconn in China ismaking $2.50 an hour compared to an average U.S. manufacturing wage of $19.15 (a difference of $16.65), so long as an iMac took 3.5 hours or so of labor to assemble, Apple would be breaking even by shifting manufacturing back to the U.S. based on the savings in shipping costs.

That’s all hypothetical. But it shows how plausible it is that under current conditions, Apple might shift production of bigger products from China back home. Plus, Apple was facing limited supply of the new iMacs based on problems at Foxconn, so maybe it’s decided to take matters into its own hands. Perhaps a hit on margins is worth the insurance against a hit on revenue if Foxconn can’t keep up.

It doesn’t hurt that the iMac is a relatively low-volume product (compared to iPads and iPhones) and that Apple already has an assembly facility in Elk Grove, Calif., where it built iMacs until 2004 and once employed 1,500 workers. Apple continues to refurbish iMacs for resale at this site, so it retains some technical and distribution capability. As TechCrunch notes, employment at that facility has jumped 50% this year, suggesting something is up.

While it’s possible that Apple merely messed up on its iMac labeling or that Intel Inside iOS devices is wishful thinking on Intel’s part, it’s also possible that between the company’s flagship PC and its determination to free itself from all vestiges of bitter rival Samsung, Apple is shifting toward “Made in America.” If so, here are a few things to watch for:

  • Without a doubt, Intel shares would surge. The company has been largely shut out of mobile, and gaining Apple’s business — even if it does so under license from ARM — would immediately vault Intel into a market leader. If it inked a mobile deal with Apple, those rumors about Apple seeking to shift its iMacs and MacBooks away from Intel would likely go away as well.
  • Apple’s margins could well take a hit, and even a small decrease could spook investors. Still, computers make up less than a quarter of Apple’s total revenue (and iMacs are a small subset of that), so the actual bottom-line impact of assembling PCs in the U.S. would likely be minimal and may well be offset by “Made in America” goodwill among domestic consumers.
  • Shipping companies could actually take a hit from any loss of Apple business. During the iPad 3 launch, for example, it was reported that Apple’s massive shipments form China (at premium rates) boosted the price DHL charged customers for international shipments by 20%. A steady stream of Apple shipments come from China to the U.S., and the vast majority (if not all) is by air.

At the time of writing, Apple hadn’t officially commented on either the “Assembled in USA” iMacs or the Intel talks. Expect all eyes to be on Cupertino for Cook’s response to both. In the meantime, the search is already on for a way to identify the U.S.-assembled iMacs while still in the box, so that consumers can choose them — and send Apple the message that they prefer to buy American.

As of this writing, Brad Moon from http://www.investorplace.com didn’t own any securities mentioned here.

Made in USA Certified:  www.USA-C.com

Filed under Business, China, Economy, Industry, Insourcing, Internet, Jobs, Julie's Blog, Labor, Made in USA, Manufacturing, News Release, Outsourcing, Political, Power of Consumers, Retail, Science, Small Business, Supply Chain, U.S. Jobs Project, USA-C Tagged with , , , , , , , , , , , , ,

Outsourcing: WHY IT MATTERS

October 22, 2012 by Leave a comment

CHRISTOPHER S. RUGABER | Associated Press

The issue:

U.S. multinational companies have taken advantage of lower trade barriers over the past 15 years to shift jobs and production to lower-wage countries, a practice generally known as outsourcing. That’s cut costs for consumers and helped those companies grow, which can support employment in theUnited States. Still, it has also raised fears that the United States is permanently losing the kind of high-paying manufacturing jobs needed to support a healthy middle class.

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Where they stand:

President Barack Obama has proposed giving tax breaks to U.S. manufacturers that produce domestically or bring back jobs from overseas. He also wants U.S. companies to pay taxes on more of their overseas earnings. Currently, U.S. corporations don’t pay U.S. taxes on overseas profits unless they bring that cash back to the United States. Obama argues that this encourages outsourcing. Many Republicans say his proposal would raise taxes on U.S. companies and encourage them to move their headquarters overseas, so they would no longer be considered U.S. corporations.

Mitt Romney says he wants to make the United States a more attractive place to do business by cutting corporate taxes and reducing regulations. Romney also says he will discourage companies from moving operations to China by pushing that country to let its currency rise in value. That would make its exports more expensive.

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Why it matters:

With unemployment painfully high, it’s not surprising that fears over outsourcing, which first surfaced in the mid-2000s, have returned. Unemployment topped 8 percent for 43 months from February 2009 through August 2012, the longest stretch since the Great Depression. It dipped to 7.8 percent in September.

Also fueling fears is the decision by Apple and other high-tech companies to manufacture many of their goods in China. That suggests it isn’t just low-skilled jobs in industries such as textiles that are being lost.

According to Walter Isaacson’s biography of Steve Jobs, the late Apple founder told Obama in 2010 that there weren’t enough engineers in the U.S. to support its vast manufacturing operations. Jobs also argued that government regulation made it harder to set up factories in the U.S.

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Five ways ‘Made in the USA’ can cut your company’s manufacturing costs

September 27, 2012 by 1 Comment

Tim Boyle/BLOOMBERG – Keeping your manufacturing nearby can trim your minimum orders and hasten your turnaround time.

By: Nicholas Ventura Washington Post

As a young business owner running a clothing line in downtown Los Angeles, I am frequently asked where we source our production. My response, “Right here in Los Angeles,” typically surprises those who ask.

Think about it: In the London Olympics, United States athletes’ uniforms were made in China. Apple’s new iPhone 5, which some have predicted will raise the our GDP by 0.5 percent, is manufactured in China, too. Outsourced manufacturing has become the unfortunate norm.

But in spite of the increased cost to our business, we’re happy to report that all of our production is vertically integrated under one roof. We consider the increased cost of domestic production a smart investment, and although offshore production is cheaper, the benefits of doing everything locally far outweigh the money outsourcing saves.

This can be hard to explain to newlybootstrapped entrepreneurs, who often make the mistake of pinching pennies in areas that require smart investments. Supply chain and inventory are both areas that require these “smart investments” and skimping on either will result in too much or too little product.

The pitfalls of having too much inventory are obvious, but for a new business, too little inventory can be just as disastrous to the company’s future growth.

So is American manufacturing really dead? I don’t think so. Consider the advantages.

1.Without extreme cost-saving minimums, business owners can cut inventory tremendously.

Our company originally brought in product from northwest Mexico, which enabled us to save 20 to 30 percent on production. However, we were forced to do larger production runs to meet their minimum orders. With a large inventory, we were forced to tie up much-needed capital and cash flow into the products we stocked.

Cash flow is crucial for new businesses, but this is a delicate balance that must be finely tuned, because missed sales due to lack of inventory is worse than having too much inventory in the first place. By being made in the USA, we can fulfill these orders and maintain a skinny inventory because turnaround times are quick.

2.The speed of domestic supply chains is leaps and bounds quicker than that of overseas supply chains.

Not only were our overseas factories asking us to meet hefty minimum orders, but their turnaround time was about three weeks slower than that of domestic manufacturers. This hurt because it didn’t allow our product to reach our customers as quickly. For a business to thrive, it needs to fulfill as much demand as possible.

3.Forecasting trends in the marketplace is more forgiving with a quick supply chain.

The larger minimums and the longer turnaround time forced us to buy production runs in large numbers and forecast trends with little confidence in our predictions. It was a bet that cost us a substantial dollar amount — all to save 20 percent. The increased agility provided by domestic production allows you to react on the fly to the market, whereas with overseas production, a bum forecast may leave you sitting on a ton of dead inventory.

4.In the end, you may even end up saving money.

Looking back, we would have made a better investment in developing our supply chains here in America rather than trying to cut costs from the onset. You are more flexible on an initial investment because you can start with lower inventory numbers, and your increased production speed will allow you to fulfill more reorders for your customers. This is a particularly important point, considering your highest margins are made through reorders.

5.Business advantages aside, think of your national pride!

“Made in the USA” is currently one of the hottest trending topics in the country for a reason. Our country needs more jobs, and there is no better way to create jobs in America than to produce here. Production equals jobs — it’s a simple equation that many Americans ignore. A huge impact can be made with a simple push by young entrepreneurs to bring manufacturing back to the U.S. The trend will spark more followers and you will see a rise in jobs and manufacturing in America.

“Made in the USA” is what built my business to what it is today. When starting your new business, ask yourself how you can harness the benefits of domestic production, too. You may be pleasantly surprised — just as those individuals were when they heard where our apparel is really sourced.

Nicholas Ventura is the co-founder of Youth Monument Clothing, Inc. in Los Angeles, California. He is a member of the  Young Entrepreneur Council (YEC), an invite-only nonprofit organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.

Filed under Business, China, Construction, COOL Country of origin labeling, Insourcing, Jobs, Labor, Made in USA, Manufacturing, Power of Consumers, Supply Chain Tagged with , , , , , , , ,

Senator Bob Casey to Promote Made in USA Guarantees

August 28, 2012 by Leave a comment

U.S. Sen. Bob Casey was in Erie on Monday to stump for stronger guarantees that materials used in highway and bridge construction are American-made.

Loopholes in buy-American requirements have allowed the use of foreign-made steel, iron and other materials in major U.S. construction projects, Casey said.

The Invest in American Jobs Act, co-sponsored by Casey in December, would eliminate loopholes and extend buy-American requirements to other infrastructure and transportation projects, Casey said. The legislation also would require public disclosure and comment on any proposed waivers.

“Since the 1930s we’ve had legislation that creates a standard of preference for steel, iron and other manufactured products made in America. This legislation would extend and further develop that made-in-America preference,” Casey said.

Casey outlined the proposed legislation at the Bicentennial Tower on lower State Street. The nearby Dobbins Landing Bridge is being rebuilt over the Canal Basin with all American-made materials, but that’s not always the case, Casey said.

Stronger requirements to use American-made materials will create new manufacturing jobs, Casey said. He cited a 2009 University of Massachusetts study that found that 100 percent reliance on domestic materials for infrastructure construction would increase manufacturing jobs by one-third.

About 509,000 Pennsylvanians, including some 11,000 in Erie County, are unemployed, according to the most recent jobless figures, released in June.

“This legislation is one way to get unemployment numbers down and job creation numbers up,” Casey said.

Casey’s Invest in American Jobs legislation was co-sponsored by Sens. Sherrod Brown, D-Ohio, and Debbie Stabenow, D-Mich.

Earlier Monday, Casey attended a campaign luncheon at the Maennerchor Club. The Scranton Democrat is running for a second six-year Senate term against Republican Tom Smith, of Armstrong County.

Source:
http://www.goerie.com/article/20120828/NEWS02/308279920/Casey-in-Erie-to-promote-made-in-USA-guarantees

VALERIE MYERS can be reached at 878-1913 or by e-mail. Follow her on Twitter at twitter.com/ETNmyers.

Filed under Business, Certifications, China, COOL Country of origin labeling, Currency Manipulation, Defense, Economy, Espionage, Government, Industry, Insourcing, Jobs Tagged with , , , , , , ,

Seven Reasons Outsourced U.S. Bank IT Jobs Are Heading Back Onshore

August 10, 2012 by Leave a comment

Some bank IT jobs that have been outsourced for the past 10 years or so are coming back stateside, at least according to one expert. “A number of banks have told me they’re pulling back work from offshore, particularly from India but not only India,” says Harley Lippman, founder and chief executive of Genesis10, an IT consulting and staffing firm based in New York. “India is still the epicenter of IT work for major banks, although some work has gone to China, Eastern Brazil and other locations.”

Lippman doesn’t have numbers to back this observation. “I’m gathering that as we speak,” he says. “A lot of people are interested in that.”

Lippman’s own company has benefited from this trend, although he declined to name any bank clients. His firm is hiring in Troy, Michigan; Atlanta (where it just opened a new facility); Grand Rapids, Mich.; and Kansas City, Mo. “That’s all driven by bank client demand,” Lippman says.

Some banks are bringing the work back in house, but the majority are finding an onshore outsourcing provider, Lippman says. “In all banks there’s head-count pressure; there continues to be cost pressure, there’s pressure on execution and delivery for all the major banks,” he says. Outsourcing offers variable costs and the flexibility to ramp up and down as the volume of work fluctuates.

Offshoring made sense 10 years ago, when a New York City programmer might have cost $100 an hour, versus $15 an hour for a worker with similar skills in India, Lippman says. “Today it’s very different, the world is more flat,” he says. “Jeffrey Immelt,” the General Electric chief executive, “said there’s no more cheap labor; I found that quite significant.” Inflation is over 20% in India.

Why are banks turning from offshoring to onshoring? Lippman offers several reasons:

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Filed under Banking, Business, Economy, Government, India, Insourcing, Jobs, Labor, Made in USA, Outsourcing, Political Tagged with , , , , , , , , , , , , , , ,

China moves in on U.S. manufacturer of high-tech car batteries

August 9, 2012 by 1 Comment

A123 Systems, a maker of advanced batteries for electric vehicles, has been struggling financially of late.  However, it may soon be rescued.  Unfortunately, the bailout could come from a Chinese auto-parts company.

Wanxiang Group Corp., one of China’s biggest auto parts makers, has offered a $450 million bid for A123 Systems Inc.

If a Chinese firm were to buy A123, it would put the firm’s lithium-ion technology and its U.S.-funded manufacturing plant, in the hands of a company that has been slowly acquiring U.S. auto parts firms throughout the Midwest.

According to Michael Wessel of the U.S.-China Economic and Security Review Commission (USCC), the deal has worrying implications.  As Wessel explained to Reuters:

“This is a very troubling transaction that should be strictly scrutinized by the U.S. government.  This is a critical sector and one that American policy makers have focused on in terms of future economic opportunity and job creation.”

China’s auto parts industry already enjoys massive subsidies that give Chinese firms a leg up on their U.S. competition.  According to a study conducted for the Economic Policy Institute (EPI) by Usha C.V. Haley, government subsidies to the Chinese auto-parts industry have reached $27.5 billion.  Haley says that China’s central government has committed to disbursing an additional $10.9 billion in subsidies for industrial restructuring and technological development of the industry.

U.S. firms like A123 face the double whammy of subsidized competition from China, and then the potential for buyout by the same competitors.

According to David Vieau, A123′s chief executive, the firm would seek approval from the Committee on Foreign Investment in the U.S. (CFIUS) in order to move forward on the sale to Wanxiang.  However, the deal already faces concerns from Rep. Cliff Stearns (R-FL), who chairs the House Energy and Commerce Committee’s panel on oversight and investigations, and is worried about the deal’s transfer of intellectual property.

The Wall Street Journal quotes Stearns as saying: “We need to make sure the federal government isn’t an unwitting accomplice to the theft of our own national secrets by providing [foreign-controlled companies] with multimillion-dollar government grants and loans.”

 

A company that two years ago was one of the most promising U.S. innovators in the clean-fuel auto industry was rescued from collapse Wednesday. Its buyer: A Chinese auto-parts company.

Wanxiang Group Corp., one of China’s biggest parts makers, offered a $450 million lifeline to A123 Systems Inc., a maker of advanced batteries for electric vehicles that received U.S.-government backing. The deal would put the firm’s lithium-ion technology and its U.S.-funded manufacturing plant into the hands of a company that has slowly acquired a passel of auto assets across the Midwest.

Wanxiang’s investment, part of a move into clean energy …

 

Filed under Aerospace, Automotive, Business, China, Currency Manipulation, Defense, Energy, Espionage, Funding, Government, Insourcing, Labor, Made in USA, Manufacturing, Military, Political, Power of Consumers, Tainted Products, Tariff, Union Tagged with , , , , , , , , ,

More Trade Actions – Wind Turbine Towers, Washing Machines

August 2, 2012 by Leave a comment

More Trade Actions – Wind Turbine Towers, Washing Machines

Dave Johnson  |  July 31, 2012  |  Campaign for America’s Future

The game is to underprice your product until your competitors go out of business (like Solyndra & other solar companies). Then you own the market. This is about a lot more than just jobs. Our government is finally doing something about leveling the playing field!

This week, in separate actions, our Commerce Department imposed “anti-dumping” tariffs on wind turbine towers and washing machines. The wind turbine towers were coming in from China and Vietnam, the washing machines from Mexico and South Korea.

Why Sell Under Cost?

Dumping is when a product is sold for less than it costs to evenmake the product. The idea is that your competitors will go out of business and the manufacturing ecosystem of suppliers, knowledge and infrastructure moves to you, so you’ll come out ahead in the long run.

It takes enormous investment to open up a manufacturing operation because you need the proper facilities, the right local utilities, the tools and machines, the skilled workforce, the suppliers, the local infrastructure, the channels to markets, and all the rest of the ecosystem that supports manufacturing. When that is lost to another country it is very, very difficult to get it back. Especially in a country with a Congress that refuses to understand the need for a national industrial policy.

This is the game that countries like China have been playing with their national industrial policies designed to capture strategic industries like solar and wind energy. By selling lower than cost for several years you gain market share and shed competitors. The suppliers, knowledge base, and jobs move their way. Eventually they build or strengthen an entire ecosystem and it is just too costly for others to try to compete.

At first it is attractive to take advantage of the lower prices, later the jobs, factories, companies and entire industries are gone along with the jobs and economic power they bring. Or, in other words, look around at what has happened to us.

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Filed under Aerospace, Automotive, Business, China, Construction, COOL Country of origin labeling, Currency Manipulation, Defense, Economy, Education, Energy, Espionage, Funding, Government, Industry, Insourcing, Made in USA, Manufacturing, NAFTA/CAFTA, Outsourcing, Political, Power of Consumers, Supply Chain, Tariff, Tariff, U.S. Jobs Project, WTO Tagged with , , , , , , , , , , , ,

Made in America: Outfitting Olympic Gymnasts

July 30, 2012 by Leave a comment

For over two decades, GK Elite has made bright, fun leotards for the world’s top Olympic gymnasts.

Based in Reading, Pennsylvania, GK Elite designs and manufactures gymnastics leotards for a dozen of countries.

From dazzling sequins embedded over bold colors to nude bodysuits embellished with crystals, the leotards worn by gymnasts during the Olympics are almost as fascinating as the Olympians that wear them. The garments have to be comfortable and flexible, while accentuating the movements of the athletes.

While you might assume these complex designs come from a French fashion house or a haute couture designer, a majority of these leotards are actually made by a 30-year-old apparel company based in Reading, Pennsylvania.

GK Elite Sportswear has designed and manufactured the leotards for the world’s top Olympic gymnasts for two decades. For the London Games at the end of the month,GK Elite produced uniforms for nine teams, including Russia, Britain, Greece, and, of course, Team U.S.A. “Gymnastics is one of the most watched sports during the Olympics,” says CEO Dan Casciano. “It always surprises people that a good number of those teams’ leotards are made right here in the U.S.A.”

The Best Kind of Marketing

It all began in 1989, when the then-8-year-old company inked its first deal with the U.S.A Gymnastics, the sport’s governing body, to supply the American national team with leotards. This led to the company’s debut Olympic leotards at the Barcelona Games in 1992, and soon other national teams approached GK Elite for leotards. By 2000, GK Elite was supplying dozens of countries with women and men’s leotards, and it also became the sole manufacturer of all adidas-branded national team gymnastics apparel.

Behind the scenes, the company spends years (yes, years) developing, designing, and manufacturing these high-profile uniforms.

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Filed under Business, Family, Industry, Insourcing, Jobs, Labor, Made in USA, Power of Consumers, U.S. Jobs Project Tagged with , , , , , , , , , , , , , , ,

Olympics committee commits to manufacturing future uniforms in USA

July 23, 2012 by Leave a comment

 

The United States Olympic Committee (USOC) on Monday announced they have voluntarily adopted rules proposed by Congress to ensure that future clothing for Team USA is made in America.

“After listening to feedback from members of Congress, we have committed, along with our partners at Ralph Lauren, to make future parade uniforms in the United States,” USOC CEO Scott Blackmun said in a statement.

Many members of Congress protested following reports that the Ralph Lauren-designed clothing that Team USA will wear in the opening and closing ceremonies of the Olympics were made in China. Sen. Robert Menendez (D-N.J), along with 12 other Senators representing both sides of the aisle, earlier this month announced legislation called the Made in America Act to require that future uniforms worn by Olympians and Paralympians to be made in America.

“I’m incredibly pleased that the USOC has formally adopted the requirements outlined in the Team USA Made in America Act,” Menendez said in a statement. “My goal was to ensure that while our Olympians and Paralympians are representing the best of American athleticism and sportsmanship, they also proudly represent the best of American manufacturing and workmanship. This new policy – which will not be altered without informing the Congress –  is a clear win for both America’s athletes and America’s workers.“

According to Menendez’s office, the senator met with the Olympic Committee last week to discuss the agreement. The USOC has committed to manufacturing all future uniforms in the United States unless essential materials are not available or obtaining them would cause “undue delay.”

Team USA will still wear the China-manufactured uniforms in this year’s Olympics. The opening ceremonies are set for Friday in London.

Filed under Apparel, Certifications, China, Industry, Insourcing, Jobs, Political, Power of Consumers, Small Business, Supply Chain, U.S. Jobs Project Tagged with , , , , , , , , ,

The Factory Factor: Why Outsourcing and ‘Made in America’ Could Decide this Election

July 23, 2012 by Leave a comment

Scott Paul

Executive Director, Alliance for American Manufacturing

American manufacturing is like apple pie to American voters: we love it and want more of it regardless of our politics, race, gender, income, or hometown. If you live in a swing state like Ohio, you already know that, because both presidential candidates have flooded the airwaves with ads labeling the other guy as the “outsourcer-in-chief.”

Beneath the recent accusations and counter-accusations on outsourcing, there is a simple truth: citizens believe manufacturing is central to our nation’s economic health, that America is in economic decline, that outsourcing to China is largely responsible for this condition, and they want their elected leaders to do something bold about it.

Voters of all political stripes are far ahead of the debate inside Washington, D.C. More importantly, perhaps, is that nearly all Americans — not only working-class Ohioans – share this view.

So don’t be surprised if both campaigns escalate the rhetoric and attacks on shipping jobs overseas in the coming weeks, in part to mask their own shortcomings.

That’s because no one is a knight in shining Made in America armor when it comes to this issue. Mitt Romney (rightly) criticizes President Obama for not labeling China as a currency manipulator, but glosses over the fact that Republican leaders in Congress are blocking a bipartisan currency bill that would pass overwhelmingly. Romney has also been on the wrong side of Administration decisions to defend American tire workers against China’s cheating and successfully rescue Chrysler and General Motors.

The GOP hypocritically accuses Obama of sending stimulus dollars overseas, while Republican Senators tried to block Buy America requirements for stimulus spending.

The fact is, accusing your political opponent of shipping jobs overseas is now an established American campaign tradition. What is missing is an honest debate about what could actually be done to promote American manufacturing jobs. Voters are ready for such a dialogue.

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Filed under Business, Economy, Government, Industry, Insourcing, Internet, Jobs, Made in USA, Manufacturing, Outsourcing, Political, Power of Consumers, Supply Chain, U.S. Jobs Project Tagged with , , , , , , , , , , , , , , , , , ,

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