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American Casting – The Reality of Reshoring

April 14, 2014

Reshoring in American manufacturing is a real phenomenon that is currently picking up speed. As hoped, more and more manufacturers are bringing jobs back to the states for a myriad of reasons.  According to this article in Design News, A.T. Kearney there are 10 reasons as to why reshoring is becoming a reality. The first of those reasons, with a large percentage of mentions within the study, is delivery time improvement. The time it takes for a product to be manufactured overseas and then sent back to the US, when all of that work could be done here, seems unnecessary.

Another thing that many people are contributing to the rise in reshoring, is how much energy costs in the U.S. have lowered. The ability to produce natural gas from shale has been a large determinant in many companies decision to move manufacturing back home.

One thing that we are not hearing very much of in the news however, is that the jobs that need to be filled here so that reshoring can stay strong, require specialized educations. Beyond that, its becoming more and more difficult for smaller companies to keep these workers due to a low pay scale.  In our industry, it is looking like automation will be the next step in manufacturing, so employees will be able to build the machine and have it operate on its own. However automation jobs have been tough to fill. There has been a lot of talk in the news and within industry regarding the skills gap, however not so much talk about American manufacturers stepping up and matching the pay that these highly sought after employees can make at larger international companies.

All in all, things are looking up for American manufacturing in 2014, but there are still some places that we need to improve in order to keep jobs on our shores.

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