The Bureau of Labor Statistics (bls.gov) defines off shoring as the movement of American jobs to foreign countries, most notably China. The opposite effect is 'on shoring' or the movement of jobs back to America. This resurgence of jobs back to American soil is picking up steam (in spite of the lack of evidence on the national scale as in our GDP), and boosting individual communities and their families. On shoring is helping entrepreneurs understand that 'American Made' is the most cost effective way for them to manage their supply chain and manufacturing operations.
A recent article in the March 2015 edition of Fast Company magazine listed American Giant as 38th on their list of most innovative companies of 2015. Andrew Rice is the author of the article. It is the story of Bayard Winthrop, CEO of the company who decided that the sweatshirt hoody business in America had withered away because of offshoring in the garment business.
After sourcing his material to India Bayard quickly became aware of the downside to foreign suppliers when the material he received was of poor quality. Winthrop encountered communication problems as he tried to explain the company's vision and quality requirements to the Indian garment manufacturer. Bayard is a passionate believer in the concept of American Made and was convinced he could design and manufacture a high quality sweatshirt hoody in the United States. He realized that even with a higher price for American grown cotton he could negotiate a price that would allow him to make the kind of hoody he desired ...all American grown and made in the USA.
When the dust settled from all of American Giant's search and negotiations with American cotton suppliers and garment manufacturers, their total operation spanned 180 miles in North and South Carolina and included a cotton grower, the fabric manufacturer and a high volume sewing company.
In Bayard's scenario, not only has his company, American Giant, scored a success with the community of Middlesex, but also North Carolina industry has been revived. This 'one stoplight town' was a bustling enterprise in the garment industry before off shoring reduced it to nearly a ghost town. Now the community is growing again as evidenced by the sign in front of Eagle Sportswear which reads "We're growing! Seeking experienced sewing machine operators." The parking lot is full and overflows into a second lot.
Winthrop hired an efficiency expert to help improve output at the sewing machine factory helping the employees work more efficiently and maintain the quality American Giant requires and in the process has increased workers wages as they continue to improve their efficiency.
The sweet spot of this story is the prosperity brought to three businesses and their employees in the Carolinas as well as the success of American Giant, all due to one entrepreneur's vision to reshore his production.
The article is a great read and can be found here at http://www.fastcompany.com/section/most-innovative-companies-2015
Entrepreneurs considering offshoring some or all of their operations need a copy of the Total Cost of Ownership calculator which will provide all the data needed to consider when evaluating offshoring. The TCO template can be found here: http://www.reshorenow.org/tco-estimator/
Here's another short article on a start up clothing manufacturer with suggestions applicable to any startup business: http://makersrow.com/blog/2015/04/how-to-start-a-successful-clothing-brand-luck-or-innovative-product/
An essential element of the Total Cost of Ownership is an up to date and accurate record of all expenses and services required to keep an operation's equipment and facilities running smoothly and dependably. Without this data to include in the TCO tool, the decision to reshore may be flawed and could cost the company many thousands of dollars.
With Express Maintenance, companies who are considering reshoring have a major tool to assist them in evaluating the decision. Express Maintenance is the most thorough and accurate computerized maintenance management program with over 120 reports to provide companies with the most meaningful cost analysis for use with the TCO tool.
Brown and Associates is an Authorized Partner of Express Technology (ET) Inc. and have 10 years' experience working with ET customers assisting with Product Selection, Implementation, Training, Usage, and Continuous Improvement.
Brown and Associates provides supporting Products and Training Services that enhance and extend the use and benefits that can be derived from Express Maintenance and Express Request.
Article courtesy of Art Nicolet