Reshoring gives a boost to US manufacturing
WESLEY CHAPEL, FLA. — Reshoring has added more than 100,000 jobs in the U.S. in the last three years — and the trend shows no signs of slowing down.
That's the word from Harry Moser, founder of the Kildeer, Ill.-based Reshoring Initiative. Moser spoke Feb. 24 at the Plastics NewsExecutive Forum in Wesley Chapel.
Since 2000, unit labor costs in the U.S. have roughly been flat, while those costs have increased rapidly in China. China's costs have increased at a compounded annual rate of 18 percent vs. an increase of 2 percent in the U.S. The U.S. increase also was matched by a similar increase in productivity.
Even though China's labor costs remain lower than the U.S., the gap isn't as great anymore, Moser said. China's labor supply also is tightening as a result of 35 years of that country's one-child policy, added Moser, who has more than 40 years of manufacturing experience.
"A lot of good work went offshore, and [U.S.] companies followed each other like lemmings — it was herd behavior," he said. "They improved their margins, but their overhead and shipping got worse."
"The strategy of getting so much work done offshore no longer makes sense."
The number of U.S. jobs being added from reshoring each year now stands at 30-40,000 — roughly equal to the 30 [thousand] -50,000 jobs that are offshored each year. "We've stopped the bleeding," Moser said.
In fact, Moser added, plastics and rubber is one of several "tipping point" industries, in which by 2015 it will make more economic sense to have products made in the U.S. than in China.
In 2013, 21 percent of large U.S. companies invested in reshoring — double the rate of 2012. According to a 2012 survey, 40 percent of contract manufacturers in the U.S. were doing reshoring work.
Although some arguments against reshoring continue — such as a shortage of skilled labor and experienced management in the U.S. and the cost of making the transition — Moser explained that many U.S. companies now can justify domestic investment in training and automation without sacrificing quality, delivery and time-to-market.
U.S. plastics firms that have resourced in recent years include Wright Engineering Plastics — an injection molder of medical products in Santa Rosa, Calif., and medical tubing extruder Precision Extrusion Inc. of Glens Falls, N.Y.
Moser's firm helps companies with reshoring by offering to supply chain problems, providing free software for companies and suppliers and by reviewing freight and duty rates.
International Silicone Conference 2014
Make plans to attend the International Silicone Conference to learn about improvements in technology, discover new applications and network with professionals in the silicone industry. The comprehensive program will feature presentations of strategic solutions to the issues we face as manufacturers, suppliers and fabricators. Numerous table-top exhibitors will showcase the latest in technology, manufacturing and materials advancements.
Molding 2014 Conference, Newport Beach, CA
Molding 2014: Technology in Motion
Exciting new technologies will be presented in the areas of: LSR Molding Reducing Cost Adding Value Automation Growing Your Business Medical Molding Emerging Technologies and much more
Once again, M.R. Mold & Engineering is a proud sponsor of Molding 2014. Please join us for this very informative industry event.
Silicone Elastomers Technology and Fabrication Course
Silicone Elastomers Technology and Fabrication
Tue.-Fri., Feb. 4-7, 2014
This course offers a comprehensive overview of siliconeelastomers, including basic siliconechemistry, types of silicone elastomers, manufacturing processes, fabrication techniques, problemsolving, and application areas.Emphasis is on liquid injection molding (LIM/LSR) with detailed information in the areasof material selection, dispensing methods, injection molding process,tool design, and bondingalternatives. This course is presented by a panelof experts in the silicones field, and time is allotted for discussion of specific projects of interest.
Featured at this course is a one day “field trip” to M.R. Mold & Engineering Corp. during which attendees will experience all the manufacturing processes involved in producing an actual liquidsilicone rubber part including material selection, pump designand operation, tool design considerations,injection molding machine setup and operation, and flow analysis.
Who Should Attend
Both entry-level and experienced rubber technologists, rubber chemists, process engineers, laboratory managers, supervisors, technicians, shop foremen, quality assurance managers and engineers, technical sales personnel and rubber producers and users.
Instructors: Mel Toub, MT Consultants; John Timmerman, Starlim North AmericaCorporation; Bob Pelletier, Fluid Automation, Inc.; Rick Finnie, M.R. Mold& Engineering Corp.; Juergen Giesow, ArburgGmbH; Torsten Kruse, Kruse Analysis
Location: HiltonSuites, Orange, CA. Call 714-938-1111 for hotel information or to reserve a discounted room rate (mentionUWM). Early Bird: $1090,Enroll by Dec. 4, 2013 and receive the $1090 fee Registration To register call 414-227-3200 or visitsce-rubber.uwm.edu
California Assembly Member Hagman Tours M.R. Mold and Engineering Plant
September 25, 2013
California Assembly Member Curt Hagman (R-55) toured M.R. Mold and Engineering in Brea on Sept. 23. Founded in 1985, M.R. Mold and Engineering has a 4,000 square foot Technology Center and is known for its expertise in liquid silicone rubber (LSR) molds, gum stock silicone, plastic injection, compression and transfer molds for its global customer base. M.R. Mold has 28 highly-skilled employees and impressive, employee training program.
Assembly Member Hagman urged Rick Finnie, president of M.R. Mold and Engineering, to continue
to reach out to legislators and educate them on ways that they could help his business. Hagman said that by watching voting records, writing editorials and suggesting changes to bills that impact the plastics industry, Finnie and his staff can help make an impact on the future of the plastics industry.
M.R. Mold and Engineering President Rick Finnie (right) hosts California Assembly Member Curt Hagman (R-55) at their Brea facility.
M.R. Mold partners with Maplan GmbH at the International Rubber Expo
International Rubber Expo, October 8-10, I-X Center, Cleveland, Ohio
The International Elastomer Conference is the premier place where customers, suppliers of materials, equipment, tools and services, and educators come together. It provides a forum for the exchange of ideas, observations, regulatory reforms and emerging scientific technologies, as well as learning and networking. The International Rubber & Advanced Materials In Healthcare Expo retains tradition with the rubber and polymer industries while also attracting the bio and advanced materials industries. The International Rubber Expo, a highly respected event for the past 34 years, builds upon this success expanding to include advanced materials, such as biopolymers in the healthcare industry and more.
Maplan GmbH in conjunction with M.R. Mold & Engineering, Xiameter, R.D. Abbott, Graco and Kistler have partnered to bring the latest technology to the International Rubber & Advanced Material Expo
Maplan GmbH is excited to feature their model MHF 200L/200 Edition horizontal press. The Edition series offers a rigid, full stroking clamping unit with an extremely compact design along with their intuitive well proven "PC5000" control. The press features a unique injection unit for processing LSR and will be running a 4 cavity valve gated shot glass mold by M.R. Mold & Engineering. The integration of Kistler 1mm in-cavity pressure sensors is providing the signal for valve gate controls.
XIAMETER® brand RBL-9200 Series silicone features a new technology translating faster processing and better part quality without the typical tradeoffs in mixed scorch safely through a combination of enhanced mixing technology in conjunctionwith the use of optimized cross-linker/plasticizer and silica packages. Combining this technology to produce silicone shot glass parts, Graco will showcase their M4-5M Meter-Mix System.
Please register on-line at www.rubber.org/store
and click on Register Now. You will need to create a free account if you do not already have one. Once you have completed your information, enter Maplan GmbH’s access code, E5741
to receive complimentary registration. Step-by-step instructions are available at www.rubber.org/store
We look forward to meeting with you in Cleveland at the inaugural Rubber Expo & Advanced Materials in Health Care.
If you are interested in attending the K`13 show in Dusseldorf, please contact us for a complimentary pass.
Essentials of Silicone Elastomers Course
RESHORING is the Wave of the Future!
Too often purchasing people are making buying decisions based on the fact that "a mold is a mold so go with the lowest cost." This has been the thought process for too many years. What happens when the mold is delivered and it's not producing good parts? When quality becomes the issue? How do you manage through that? There is no substitute for working with domestic sources. Creating jobs in the U.S., having the ability to visit your mold shop for mold trials within the U.S., reducing cost of travel and time away from the shop, is not only cost effective but a significant benefit. Chinese manufacturers are experiencing double-digit inflation in wages and other manufacturing costs. It no longer pay to go off-shore for manufacturing. Reshoring is the wave of the future!
Total Cost of Ownership Estimator™ is a free tool used by hundreds of companies for better sourcing decisions. It should be used to convince customers to buy domestically. Data suggests that 25% of what has been off-shored should come back if companies use TCO instead of price for sourcing decisions.
BOY 80M/Horizontal Injection Machine For Sale
This recently restored 1996 BOY molding machine is set up to run LSR. The screw was removed and cleaned and faulty boards were replaced. A brand new Procan Control, Part ID 9629051, was added.
- 27,918 hours of operation
- 48mm barrel size
- 8.25 oz. shot size
Contact Brian Geisel, Operations Manager at
The mission of the Reshoring Initiative is to bring good, well-paying manufacturing jobs back to the United States by assisting companies to more accurately assess their total cost of offshoring, and shift collective thinking from ‘offshoring is cheaper’ to ‘local reduces the total cost of ownership.’
While many believe the United States is no longer an advantageous place to produce goods, nothing could be further from the truth. However, if more manufacturing is to find its way back from overseas, it needs to become a national priority. That's why it's important for both individuals and companies to get involved in the Reshoring Initiative.
Ways to Support the Cause
- Rally support for reshoring in your company, industry and community.
- Link to www.reshorenow.org from your company's website.
- Post relevant comments to online articles about American manufacturing.
- Send a letter to the editor regarding the importance of reshoring in your industry.
- Share the Total Cost of Ownership Estimator™ with local economic development groups.
- Talk to your U.S. Senators and Congressmen about the economic benefits of reshoring.
- Share information about any events or publications where the topic of reshoring would apply to the Reshoring Initiative.
- Submit a reshoring case study.
- Become a sponsor of the Reshoring Initiative.
- Share links to reshoring articles that you would like to see featured in the Reshoring Library.
- Volunteer your time to a Reshoring Initiative project.
Silicone Elastomers Course a HUGE Success in California
The Silicone Elastomers Technology and Fabrication hosted by the University of Wisconsin Milwaukee held its second class in Anaheim, CA February 18-21. The pilot course was launched in California last July with 34 participants. This course drew 47 participants from all over the U.S.
For more than 10 years, this course has offered a comprehensive overview of silicone elastomers, manufacturing processes, fabrication techniques, problem solving and applications. Emphasis is on LSR (liquid silicone rubber) in the areas of material selection, dispensing methods, injection molding process and tooling. An added benefit to the California class is a "field trip" to M.R. Mold & Engineering, during which attendees experienced first-hand the entire manufacturing process.
Industry experts, Mel Toub of Momentive Performance Materials, John Timmerman of Starlim North America Corporation, Bob Pelletier of Graco, Inc., Rick Finnie of M.R. Mold & Engineering and Juergen Giesow of Arburg GmbH were the course instructors.
Feedback received from participants included, but not limited to: "Great combination of theory and demonstration of practice to bring it all together! Lots of information about all aspects so that you see the whole picture." "Good, well rounded approach. Covered all the basics." "MRM field trip was very informative. I learned a lot about the process from seeing it in use." "Very good variety of topics - diverse instructors."
For more information about upcoming classes, visit sce-rubber.uwm.edu or contact M.R. Mold at firstname.lastname@example.org
M.R. Mold is Honored to be Part of the iWarriors Program
The mission of iWarriors is to honor severely injured members of the Fifth Marines by roviding them with personalized iPads. With help from members of the American Mold Builders Association, MoldMaking Technology Magazine, and others, their vision is to expand these and other gifts to severely injured service members of all branches of the Armed Forces.Since 2010, iWarriors has been delivering iPads to returning amputees for their use while undergoing care at Balboa Naval Hospital in San Diego, CA. Thanks to the donations of AMBA members and industry colleagues, funds are continually raised to support this great cause.Rick Finnie, President of M.R. Mold & Engineering and Geri Anderson, Marketing Director, will be among 12 people to visit Balboa Naval Hospital and Camp Pendleton March 21-22 to distribute more than 50 iPads to the brave warriors who have risked life and limb for our great country. We are humbled to be part of this extraodinary cause.Donations can be mailed to:iWarriors.org Fund of SCVF516 Second Street, Suite 214Hudson, WI 54016or by visitimg www.scvfoundation.org