Chinese bid for A123 may raise security risks: Senators

A123

WASHINGTON (Reuters) – A Chinese company’s attempt to take over government-backed battery maker A123 raises serious national security concerns, a bipartisan group of lawmakers said this week, adding to growing congressional opposition to the deal.

China’s Wanxiang Group Corp is currently competing with U.S.-based Johnson Controls Inc to buy bankrupt A123, which makes lithium ion batteries for electric cars.

The government must ensure that any sale of A123’s technology, which has also been used by the military and to support the U.S. electrical grid, does not threaten domestic security, the senators said in letter to Treasury Secretary Timothy Geithner, Energy Secretary Steven Chu and other top cabinet officials.

Read more of this post

How to Save U.S. Manufacturing Jobs

By Howard Wial @CNNMoney February 23, 2012: 5:34 AM ET

Howard Wial is a fellow for the Brookings Institution Metropolitan Policy Program.

At first glance, manufacturing jobs would appear to be a dying breed.

The United States lost 6 million manufacturing jobs between early 2001 and late 2009. And despite small gains during the last two years, the trend in manufacturing employment for the last 30 years has been downward.

That has led some to argue that long-term job loss in the industry is inevitable. But our research shows otherwise.

There are two common versions of the “inevitability” argument. One holds that U.S. manufacturing wages are too high to be internationally competitive. The other maintains that manufacturing job losses are the result of productivity growth. Both arguments are wrong. Read more of this post

How To Invest For Jobs Coming Back To U.S.

Brian Sozzi, Contributor   2/16/2012

The grand theme I want to put on the table is the concept of onshoring, sometimes called reshoring, which is the bringing back of U.S. jobs from overseas supply chains.

U.S. businesses have started to realize that while workers in far away lands garner miniscule wages compared to their U.S. counterparts, having operations outside of the country can be a strategic disadvantage.  The speed and structure in which information is consumed has caused U.S. consumers to demand top quality products and to want to buy them whenever they please.

Having a manufacturing plant domestically aids in the quicker movement of goods from design table to sales floor.  Furniture maker Ethan Allen is great example of a manufacturer producing most of its products in the U.S. and doing customization for clients, setting itself apart from price-point focused competitors.

Corporate managers are simply getting over their infatuation with cheap international labor and analyzing the total costs of doing business in the U.S. compared to say, China or India.

There is a dollop of icing on the cake here as well.  The topic of focusing on onshoring to boost employment levels seems to be an area of agreement between bickering Republicans and Democrats.  Republican presidential hopeful Rick Santorum, for example, wants to zero out the U.S. corporate tax for manufacturers.

Anytime the major political parties agree on anything, even the slight thing, it’s cause to sit up and take notice from an investment standpoint.  The Donkeys and Elephants may be a little apart on how to precisely shepherd along the corporate onshoring interest, but at least they are talking the same language.  It’s high time they do find common ground if the following is to be reversed:

  • Manufacturing employment has fallen by approximately 37% since 1980.
  • According to a survey done by the Manufacturing Institute and Deloitte, some 600,000 manufacturing jobs are currently unfilled due to a mismatch between job requirements and experience.

I have read a fair number of columns bantering about onshoring.  Is it overhyped?  Do we really need more jobs in the service sector U.S. economy?  The debates are almost endless.  Unfortunately, though, I have failed to stumble upon investment strategies to profit from onshoring, which has already begun to a certain extent, and could likely gain steam in the years ahead.

Buy-and-hold investors, this should be right in your wheelhouse: a highly probable future event to build positions around in companies with durable competitive advantages.

A few names that come to mind:

  • Waste Management: Owns 260 plus landfills and is the largest waste management business in the U.S.  More manufacturing production means more waste to be piled into the company’s green bins.
  • ADP: Benefits in two manners.  First, workers are hired to run new domestic manufacturing plants (hopefully by people that used the downturn to attain new technological skills).  Second, there should be a trickle down effect in the overall employment sector via a ramp in higher paying manufacturing jobs.
  • Dunkin Brands: “America Runs on Dunkin” as the brand’s slogan goes.  The company’s moat is not as wide as an ADP or Waste Management, but more U.S. manufacturers should mean more egg sandwiches (which Starbucks does not do superbly) and coffee.  Store penetration is increasing in areas of the country that are manufacturing oriented.

This Column Was 100% Made in America

A Hyundai ad that ran during Super Bowl coverage showed workers from the company's plant in Montgomery, Ala.

A Hyundai ad that ran during Super Bowl coverage showed workers from the company's plant in Montgomery, Ala.

By   Published: February 15, 2012

BLUE-COLLAR workers in fields like manufacturing — particularly when they make products on American soil — are again becoming a favorite subject for white-collar workers on Madison Avenue.

The trend was born of the economic worries that followed the financial crisis in 2008. Recently, it is gaining steam — appropriate, since the ads often use blasts of steam to signal something is being built — with proposals in Washington to offer incentives to encourage the location or relocation of factories in the United States.

“We continue to see very heavy emotional response to anything that would leverage against the bad economy,” said Robert Passikoff, president at Brand Keys, a brand and customer-loyalty consulting company in New York. Read more of this post

Obama Takes Fresh Aim at China, Touts “Insourcing”

 

ReutersBy Laura MacInnis | Reuters

MILWAUKEE (Reuters) – President Barack Obama kept up his attack on Chinese trade practices during a campaign-style visit on Wednesday to a Midwest factory, where his call to bring jobs back home was intended to resonate with voters in an election year.

The day after meeting China’s leader-in-waiting, Vice President Xi Jinping, at the White House, Obama cited America’s chief rival a number of times in a speech to promote the potential of “insourcing” jobs back to America from overseas.

“I will not stand by when our competitors don’t play by the rules,” he told workers at Master Lock, a company he lauded in his State of the Union address last month for having moved back about 100 union jobs from China since mid-2010.

“That’s why I directed my administration to create a Trade Enforcement Unit with one job: investigating unfair trade practices in countries like China,” he said in prepared remarks.

Obama took a firm line over trade on Tuesday during his Oval Office meeting with Xi, who is in line to assume the Chinese presidency in March 2013.

This tough stance should appeal to voters in election battleground states like Wisconsin, where Beijing is often blamed for killing American jobs.

Republican presidential hopeful Mitt Romney, a former private equity executive, accuses Obama of being too soft on China and lacking the executive or other leadership experience to steer the U.S. economy toward lasting recovery.

Master Lock, a unit of Fortune Brands Home & Security, is the world’s largest manufacturer of padlocks and related products to secure homes, cars and bicycles. Its story is a positive one for Obama, who must tout his economic leadership to secure another White House term.

The firm says its Milwaukee plant is running at full capacity for the first time in 15 years – an example the White House is eager to replicate as the November 6 election nears.

“They’re deciding that if the cost of doing business here is no longer much different than the cost of doing business in countries like China, they’d rather place their bets on America,” said Obama.

It was his first stop in a three day campaign-style swing when the Democrat will raise funds in California and stop at aircraft manufacturer Boeing in Washington state.

How to cope with a rising China – and compete against cheap Chinese exports – is one of the toughest challenges for Obama to navigate as the election approaches, particularly as opinion polls showing rising U.S. voter frustration with the Asian economic powerhouse.

(Reporting By Laura MacInnis; Editing by Peter Cooney and Cynthia Osterman)

Can Manufacturing Jobs Come Back? What We Should Learn From Apple and Foxconn

business
The Huffington Post

David Paul – President, Fiscal Strategies Group  –  Posted: 02/13/2012 8:30 am

Apple aficionados suffered a blow a couple of weeks ago. All of those beautiful products, it turns out, are the product of an industrial complex that is nothing if not one step removed from slave labor.

But of course there is nothing new here. Walmart has long prospered as a company that found ways to drive down the cost of stuff that Americans want. And China has long been the place where companies to go to drive down cost.

For several decades, dating back to the post World War II years, relatively unfettered access to the American consumer has been the means for pulling Asian workers out of deep poverty. Japan emerged as an industrial colossus under the tutelage of Edward Deming. The Asian tigers came next. Vietnam and Sri Lanka have nibbled around the edges, while China embraced the export-led economic development model under Deng Xiaoping.

While Apple users have been beating their breasts over the revelations of labor conditions and suicides that sullied their glass screens, the truth is that Foxconn is just the most recent incarnation of outsourced manufacturing plants — textiles and Nike shoes come to mind — where working conditions are below American standards. Read more of this post

Dumping China for American Job Shops

More U.S. small businesses are steering their orders to American factories, such as Tennessee-based Bristol Custom Solutions, as costs go up in China.

More U.S. small businesses are steering their orders to American factories, such as Tennessee-based Bristol Custom Solutions, as costs go up in China.

By Parija Kavilanz @CNNMoney  February 13, 2012: 11:51 AM ET

NEW YORK (CNNMoney) — U.S. small businesses that initially rushed to Chinese factories to get their products made are now dumping them for American manufacturers.

And the shift is gaining traction, said industry experts who match U.S. small companies with domestic firms.

Mitch Free, the founder and CEO of Atlanta-based MFG.com, said his company has seen a 15% uptick in inquiries since 2009 from U.S. firms looking for American factories to replace their Chinese suppliers.

MFG.com is one of the largest online directories used by businesses to find domestic manufacturers.

One reason behind the trend is that “Chinese manufacturing has become expensive,” Free explained.

Another is that the U.S. economy is still uncertain. Most small businesses are forced to order large quantities to justify costs when dealing with companies overseas, he said. And that’s a risky move if American consumers are not splurging yet.

Manufacturers closer to home allow small businesses to order smaller batches, which means less of their money is tied up if their inventory is unsold, he said.

Revive Made in USA? Easier said than done

WindStream Technologies opened a new manufacturing facility in North Vernon, Ind., last September to produce small wind turbines for home use.

WindStream Technologies opened a new manufacturing facility in North Vernon, Ind., last September to produce small wind turbines for home use.

WindStream Technologies knows well the value of manufacturing in the United States.

In December 2010, the startup selected a Chinese factory to make 35 prototypes of its wind turbines, because they wanted them “quickly and cheaply,” said David Dingman, Windstream’s lead mechanical engineer.

It was a disaster. “The prototypes that the Chinese manufacturer sent back to us were junk,” said Dingman. “There were parts that were put upside down. Other parts were poor quality. Some even fell off.”

WindStream decided not to have the final products made in China.

The company was able to snag U.S. manufacturers with the help of MFG.com.

And last month, it started mass producing its small wind turbines for home use at its new 45,000-square-foot manufacturing facility in North Vernon, Ind. The company employs 30 workers and is hoping to ramp up to 100, if it lands a deal to sell the turbines at a mass retailer, said Dingman.

WindStream now has its turbine covers made in Chicago, while some metal parts are produced in Ohio.

Some of the turbines parts are still made in China, simply because the raw materials to make them don’t exist in the United States, said Dingham. But “the Midwest proved to be terrific for us,” he said.

Indeed. WindStream produces its turbines at a 10% lower cost per unit compared to what the company would have paid in China, thanks to its American suppliers that provide competitive prices and the elimination of overseas shipping and travel costs.

Del Mar, Calif., entrepreneur and inventor Julie Zizka actually liked the way her tote bags looked after a Chinese manufacturer produced 5,000 of them for her in 2008.

But she still was not a fan of having her manufacturing done overseas. She had concerns about production delays and fretted about how the extensive amount of transportation used was hurting the environment. What’s more, she noticed that her customers were preferring products that were made in the United States.

By 2011, she was looking for a U.S. manufacturer to produce her “Tote Buddy,” a colorful tote for storing reusable plastic bags.

She came across one after searching online and seeing ads for Bristol Custom Solutions, which heavily advertises on MacRAE’s Blue Book.

MacRAE’s has seen a pickup in inquiries — just like Zizka’s — from companies wanting to replace Chinese suppliers with American ones, said Lori Meloche, MacRAE’s vice president of marketing.

The directory — first published in the United States in 1893 as a “blue-colored book” — has since evolved into a website with more than 1.2 million North American industrial manufacturers, which averages 1.5 million users monthly.

What small firms want from Obama’s manufacturing plan

Zizka connected with Bristol, a 26-year-old, Tennessee-based manufacturer, best-known for making secure locking bags used by banks and the federal government to transport cash and other valuables.

“People have been contacting us all the time lately, telling us they don’t want to produce their products in China,” said Brandon Cantrell, Bristol’s general manager.

When Zizka sent Bristol a sample of the tote, the company redesigned it and brought down some of her costs, said Cantrell.

Today, Bristol is making 1,000 new Tote Buddy bags for sale this spring. For Zizka, the unit price for one of her Tote Buddy bags made in Cantrell’s factory is still 170% higher than for one made in the Chinese factory, said Cantrell.

But that doesn’t bother Zizka.

“My customers want my bag made in the U.S.,” she said, “I’m willing to absorb that cost if I can control the quality, get them to my customers faster and help the environment as well.”

GE to Hire 5,000 U.S. Veterans, Investing in Plants

WASHINGTON (Reuters) – General Electric Co plans to hire 5,000 U.S. military veterans over the next five years and to invest $580 million to expand its aviation footprint in the United States this year.

The largest U.S. conglomerate unveiled the moves ahead of a four-day meeting it is convening in Washington starting on Monday to focus on boosting the U.S. economy, which has been slow to recover from a brutal 2007-2009 recession.

“We should have the confidence to act and to restore American competitiveness,” Chief Executive Jeff Immelt, a top adviser on jobs and the economy to President Barack Obama, said in a statement.

The U.S. unemployment rate — seen as the main barrier to a move vibrant recovery — fell to a near three-year low of 8.3 percent in January, helped in part by the manufacturing sector adding about 50,000 workers. Even with that improvement, 23.8 million Americans remain out of work or underemployed, which is keeping the economy a key issue heading into November’s presidential elections.

The world’s largest maker of jet engines plans this year to open three new U.S. aviation plants, in Ellisville, Mississippi; Auburn, Alabama, and Dayton, Ohio. After cutting headcount significantly during the recession — as did its major peers including United Technologies Corp and Caterpillar Inc — GE has added about 9,000 U.S. workers since 2009, and has already announced plans to hire another 4,500 people.

The Fairfield, Connecticut-based company, whose operations range from making loans to mid-sized businesses to manufacturing railroad locomotives, plans to discuss these moves at the Washington meeting. Boeing Co CEO James McNerney and Dow Chemical Co CEO Andrew Liveris are also scheduled to speak.

(Reporting By Scott Malone; Editing by Muralikumar Anantharaman)

FOX23 Special Report: The Made in America Movement & Made in the U.S.A.

Reported by: Adam Paluka   Published: 2/06 8:03 pm

Buy American and you help the economy. That is an old adage that is getting new life thanks to a movement to build homes across the nation using more products with the “Made in the U.S.A.” label.

If you were to drive around Tulsa, chances are you’ll pass a home built by Bill Rhees. He’s been making blueprints a reality for almost 50 years with his son, and Partner, Phil Rhees.

Together they run BMI Construction. Right now, they’re working on a $5 million home near 111th and Yale in south Tulsa.

“This house we started about three and a half years ago,” Phil told FOX23.

2008 was a time when no one was thinking about a “Made in America Movement“. It never came up with buyers.

“Never, never. They just assumed, and I’ve been amazed myself how many of the products we put in these houses come from overseas,” Bill said.

It never came up when they discussed what lumber, stones, and drywall to buy.

“We don’t know exactly where every individual product came from,” Phil explained.

Phil said last month that is changing, “We really do want to make a effort to make this happen.”

The “Made in America Movement” is simple, encourage builders across the country to use just five percent more made in American products during construction. It’s not the brain child of the feds, a housing agency, or politician, rather it began as a dream by on builder in Montana.

If every builder in the country buys in, Paul Kane with the Tulsa Home Builders Association said, “They’re going to create anywhere to 220,000 to 250,000 jobs nationwide.”

Phil is up for the challenge.

“I believe that we could easily use five percent more,” he said.

Easy because it could take just a few phone calls to get everything with a Made in the U.S.A. sticker.

“You need to spend some time on the phone with the suppliers to find out where these products are coming from,” Phil said.

Often, its overseas, but if you were to look hard enough, the movement’s believers say you’ll not only find all elements of home construction made in the U.S.A., but some made right here in Oklahoma.
Products like York HVACs systems made in Norman.

“If there’s a buy Oklahoma or buy American movement that would be exciting to everyone in this building,” Vicki Davis, who works for York’s parent company Johnson Controls, said.

Their facility is a world of machines, robots, assembly lines, and hard working Oklahomans.
Around 750 people get a paycheck at the plant.

“We offer the higher quality, and that’s what we sell our products on. It’s not that we build the cheapest, but it’s that we build the highest quality,” Davis told FOX23.

Should the buy American dream become a reality Davis would be excited.

“If we pick up five or ten percent (new orders), then we’re going to add anywhere from 150 to 200 jobs here in the Norman plant.”

Cost could be a factor, if made in America means your wallet takes a beating this might not work.

“A lot of it has to do with price. We have to be price conscious for our clients,” Phil said,

If the price increase to buy American made is slight, BMI Construction is ready to get on board

“It is going to happen, once we start getting the word out. It’s going to happen, just watch it,” Bill Rhees said.

Now, it’s all about getting the word out.

“If we were unaware as builders, just think what the general public is going to be thinking. They’re going to say, ‘My gosh, I never realized this.’”

Supporters of the movement tell me the Americans build 1.4 million homes each year. They say if builders reallocate 5% of their construction spending to American made products, this would add roughly $10 billion to America’s Gross Domestic Product.

Join the Made in America Movement, sponsored in part by Made in USA Certified.

Copyright 2012 Newport Television LLC All rights reserved.

RAILEAN® American Handcrafted Rum and Agave Sprits Undergoes a New Brand

 

Railean Rum - The only Made in USA Certified Rum Distiller in the United States

Railean Rum - The only Made in USA Certified Rum Distiller in the United States

RAILEAN®, The Only USA Certified Handcrafted Rum and Agave Distiller, Unveils a Bold New Image, a Redesigned Website, and Innovative Spirits in 2012. 

San Leon, Texas (PRWEB) February 07, 2012

Motivated by its widespread success in Texas, where the margarita is practically the state drink, the American rum and agave distiller RAILEAN has rejuvenated its website and enhanced its product line for 2012. The enhancements are part of an overall branding effort led by Houston-based Woodlands Ad Agency, which designs custom websites, builds brands, and leads many online marketing campaigns.

The new website design features detailed information about the RAILEAN product line, which currently includes four rum labels and two agave labels. Visitors can access informative articles about the American rum industry and delectable food and drink recipes, from the fresh and fruity to those best suited for celebrating an incoming hurricane. While RAILEAN cannot sell its alcohol products online due to liquor laws, a variety of RAILEAN pirate merchandise, including t-shirts, shot glasses, and branded materials are available for purchase.

In contrast to the mass-produced, imported products from the Caribbean, Puerto Rico, U.S.Virgin Islands, and Mexico that currently dominate the market, each RAILEAN bottle is made in America using domestically produced sugarcane molasses from the Gulf Coast. Leading the first woman-owned, USA-certified rum and agave distillery, Kelly Railean is revolutionizing the American market. Since 2005, she has introduced the refreshingly tropical Texas White, the rich Reserve XO and the perfectly balanced Spiced Rum, all of which are bottled by hand. Railean also offers the earthy Small Cask Reserve, a handcrafted rum that rates in the upper 90s.

In 2010, the rapidly growing business expanded to include the high quality El Perico Silver. This smooth liquor, which is made from 100% blue agave nectar cultivated in Jalisco, rivals the best top-shelf tequila brands produced in Mexico. A smooth Reposado American agave spirit is scheduled for release in Spring 2012.

“We are thrilled with the new direction RAILEAN is heading in,” says Kelly Railean, proprietor and master distiller. “In 2011, RAILEAN became the only distiller of rum and agave to achieve the stringent Made in the USA® Certified designation by the Federal Trade Commission. Our new website and product offerings are the jumpstart we need to establish Railean American rum and American agave spirits as this nation’s preeminent all American brand.”

About Railean Distillers® http://www.railean.com 

Exclusively fermented, distilled and bottled by RAILEAN Distillers, LLC, at the Eagle Point Distillery in San Leon, Texas, RAILEAN handcrafts the only Made in the USA Certified® rum and agave spirits. This artisan distiller produces everything from scratch using domestic raw materials. Educational and tasting tours are available to the public.


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