Auto Chiefs Concerned with NAFTA Stance

The auto industry has warned that significant changes to the so-called rules of origin could undercut the president’s America-first goals.

Top executives from Detroit automakers met Monday with Vice President Mike Pence and other administration officials and aired their concerns about changes the Trump administration is seeking to the North American Free Trade Agreement.

Trump has pushed for companies to construct more auto assembly plants in the U.S., while also pushing for major changes to NAFTA that the automakers oppose. U.S. negotiators have proposed significant changes to the so-called rules of origin for autos in a bid to ensure more U.S.-made parts are used in vehicles assembled in North America, a change that the auto industry has warned could undercut Trump’s America-first goals.

“We view the modernization of NAFTA as an important opportunity to update the 23-year-old agreement and set the stage for an expansion of U.S. auto exports,” Matt Blunt, a former Missouri governor who leads the American Automotive Policy Council, a trade association representing Ford Motor Co., General Motors Co., and Fiat Chrysler Automobiles NV said in a statement. “We also appreciate the opportunity to directly address the industry’s concerns with the administration’s rule of origin proposal.”

Blunt said there are other things the group would like to have added to NAFTA, including a provision to guard against currency manipulation by Mexico and Canada.

Fiat Chrysler Chief Executive Officer Sergio Marchionne, GM CEO Mary Barra and Joe Hinrichs,  Ford’s president of global operations, attended the White House meeting. U.S. Trade Representative Robert Lighthizer and National Economic Council Director Gary Cohn were also scheduled to attend the meeting, Pence’s office said earlier on Monday.

By Ryan Beene Bloomberg: https://www.bloomberg.com/news/articles/2017-11-27/auto-chiefs-air-concerns-with-trump-nafta-stance-in-white-house

 

 

Five Trends That Will Shape The Supply Chain In 2017

Five Trends That Will Shape The Supply Chain In 2017

With the holiday parties and New Year’s celebrations in the rear-view mirror, it’s time to take a look ahead at what’s in store for supply chain in 2017. And while we don’t have a crystal ball to predict the future, there are some trends that will undoubtedly and irrevocably shift the supply chain in the year ahead. Read more of this post

Plastic or Not? Over 100 Bags of Fake Rice Seized in Nigeria

Plastic or Not? Over 100 Bags of Fake Rice Seized in NigeriaNigerian authorities have seized 2.5 metric tons of reportedly fake rice during the holiday season. Read more of this post

Certified Inc. Admitted to the Research Park at FAU Technology Business Incubator® (TBI)

CERTIFIED, INC. ADMITTED TO THE RESEARCH PARK AT FAU TECHNOLOGY BUSINESS INCUBATOR® (TBI)

FOR IMMEDIATE RELEASE

Boca Raton, Florida May 11, 2016 – CERTIFIED, INC. has announced the Company’s invitation and admittance into the highly selective Technology Business Incubator® (TBI) at the Research Park at Florida Atlantic University, a move that will assist in furthering breakthrough advancements engineered by CERTIFIED in the area of cognitive research and the collection of big data. CERTIFIED developed the Augmented Reality Visual Search Engine (ARVSE), a smartphone app named AUGI™, an advanced product tracking and tracing breakthrough. Read more of this post

Ford Announces $1.6 Billion Investment in Mexico

Ford announces $1.6 billion investment in Mexico, derided by Trump

A Ford logo is pictured at a store of the automaker, in Mexico City, Mexico, April 5, 2016. REUTERS/Edgard Garrido

DETROIT/WASHINGTON/MEXICO CITY (Reuters) – Ford Motor Co (F.N) on Tuesday announced it would invest $1.6 billion to build more small cars in Mexico, starting in 2018, triggering a fresh blast of criticism from Republican front-runner Donald Trump. Read more of this post

Reshoring Data Reveals Progress, Problems for Reclaiming Jobs

The Reshoring Initiative, a not-for-profit organization that helps manufacturers recognize the profit potential for adopting local sourcing and production, issued its 2015 Reshoring Report, documenting progress that the U.S. manufacturing sector has made over the past decade in offsetting the job losses and capital investment, and recognized that “rapid job loss” has been curtailed, while conceding that “huge challenges to bringing back the 3-4 million manufacturing jobs previously lost to offshore.”

The report includes data on reshoring of formerly offshore jobs and foreign direct investment (FDI) by companies establishing new domestic manufacturing for 2007-2015. Both factors are keyed to manufacturers’ determination to produce goods in the market where they are intended to be distributed, known as ‘localization.’

The complete— Reshoring Initiative Data Report: Reshoring and FDI Continue Strong in 2015 — is available online.

For 2015, the combination of reshoring and FDI continued to be strong, adding 67,000 domestic manufacturing jobs. Since February 2010 (a low point for U.S. manufacturing employment), more than 249,000 manufacturing since the manufacturing employment low of February 2010, the group indicated.

However, the overall trend fell 6% from 2014 due to a strong U.S. dollar; low oil prices and shipping rates; and weaker economies in competitor manufacturing countries.

Among the reasons for reshoring and FDI documented for 2015 are government incentives, ecosystems/localization, proximity to customers, and a skilled workforce. Offshore problems that companies cited included lower quality, supply interruption, high freight costs, and delivery.

Regionally, the reshoring trend remained strongest in the Southeast and Texas, though in 2015 the West overtook the Midwest for second place among regions gaining the most jobs from offshore.

Despite the downturn, 2015 was the second consecutive year that manufacturing jobs returning to the U.S. remains equal to or slightly higher than the number of jobs leaving. By comparison, for 2000-2007, the U.S. market lost about 220,000 manufacturing jobs annually due to offshoring.

“We publish this data annually to show companies that sourcing domestically is an increasing trend in the United States,” stated Reshoring Initiative founder and president Harry Moser. “With 3 to 4 million manufacturing jobs still offshore, as measured by our $500 billion/year trade deficit, we see potential for even more growth, and we hope this data will motivate more companies to reevaluate their sourcing and siting decisions.”

Moser, the former president of machine tool builder GF AgieCharmilles, established the Reshoring Initiative to help manufacturers recognize the profit potential of embracing local sourcing and production. Among the resources it offers companies to make supply chain sourcing decisions is its Total Cost of Ownership Estimator®, a calculating tool to help account for and understand relevant offshoring costs (e.g., inventory carrying costs, shipping expenses, intellectual property risks, etc.)

SOURCE: American Machinist

Look Out China, US Manufacturing is Headed for No. 1

Look Out China, US Manufacturing is Headed for No. 1

Advanced manufacturing technologies are helping to push the United States back toward being the most competitive manufacturing nation in the world, according to a new survey of global CEOs and other senior executives. Read more of this post

Made in USA is Less of an Option

 

Made in USA is Less of an Option

Presidential hopefuls Donald Trump and Bernie Sanders are about as ideologically opposite on the political spectrum as any two candidates in recent memory. Both of them, however, are in agreement on one issue: free trade. Read more of this post

Steel Made at Northwest Indiana Factory Used in Navy vessels

Welding MAM

BURNS HARBOR, Ind. (AP) – The 337-foot USS Illinois submarine was built with steel made at the Arcelor Mittal USA factory in northwest Indiana. Read more of this post

Nordstrom, AG Adriano Goldschmied Apparel Class Action Settlement

Nordstrom, AG Adriano Goldschmied Apparel Class Action Settlement

A class action settlement has been reached with apparel manufacturer AG Adriano Goldschmied Inc. and retailer Nordstrom Inc. over allegations they sold clothing with labels that did not properly disclose the fabric’s country of origin. Read more of this post

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