January 23, 2017 Leave a comment
January 23, 2017 Leave a comment
September 15, 2016 2 Comments
Ford announced today it will be hitting the road, taking its small-car production across the border to Mexico.
So, this had FOXBusiness.com thinking – what other companies have jumped ship, relocating their operations outside of the U.S.? The North American Free Trade Agreement, once thought to be a saving grace for the economy, instead offers access to cheaper labor elsewhere. Combine this with the U.S. corporate tax rate, one of the highest in the world, and you’ve got plenty of incentive for companies to abandon their U.S. bases.
So which other companies have joined the ranks of Ford and moved production out of the U.S.? Here are 5 big businesses taking their jobs elsewhere.
August 3, 2012 3 Comments
Best-selling author and filmmaker Peter Navarro brings us DEATH BY CHINA, a documentary feature confronting America’s most urgent problem — its increasingly destructive trade relationship with China.
Since the communist nation began flooding U.S. markets with illegally subsidized products in 2001, over 50,000 American factories have disappeared, putting than 25 million Americans out of work. The United States, as a result, now owes more than 3 trillion dollars to the world’s largest totalitarian nation.
Through compelling interviews with voices across the political spectrum, DEATH BY CHINA exposes our nation’s broken relationship with China and why it must be fixed for the world to be a place of peace and prosperity.
February 27, 2012 1 Comment
Written by: BBC North America editor, Mark Mardell
Drew Greenblatt is an enthusiast: proud of his company, Marlin Steel, and proud of the factory floor packed with state-of-the-art equipment.
I watch, fascinated, as a little white robot squeezes out a wire, putting kinks and bends in it as it emerges.
Then it hands it over to a slightly larger yellow robot, which holds it steady for a twist in the end before turning it over for another twist at the other end.
Oddly, I find this cutting-edge equipment rather cute and cartoonish.
The question is whether this endearing duo are merely the remnants of America’s industrial past or the sort of equipment that will make the USA world-beaters once again.
The factory floor space at Marlin Steel is being doubled and there is no doubt the company is doing well, prospering even, during the bad years. Read more of this post
February 23, 2012 Leave a comment
If you happen to notice sometime later this year that you’re suddenly paying a lot more for orange juice, you can blame America’s food safety authorities. The U.S. Food and Drug Administration, after several weeks of deliberation, has blocked imports of frozen, concentrated orange juice from Brazil, probably for the next 18 months or so, even though the agency says the juice is perfectly safe.
The FDA’s explanation is that its hands are legally tied. Its tests show that practically all concentrated juice from Brazil currently contains traces of the fungicide carbendazim, first detected in December by Coca-Cola, maker of Minute Maid juices. The amounts are small — so small that the U.S. Environmental Protection Agency says no consumers should be concerned.
The problem is, carbendazim has not been used on oranges in the U.S. in recent years, and the legal permission to use it on that crop has lapsed. As a result, there’s not a legal “tolerance” for residues of this pesticide in orange products. Read more of this post
February 23, 2012 Leave a comment
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
February 17, 2012 Leave a comment
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:
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:
February 16, 2012 Leave a comment
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
February 15, 2012 Leave a comment
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)
February 14, 2012 2 Comments
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