Factories begin to shift back to US

[alp227]

Source: Financial Times

Two-thirds of big US manufacturers have moved factories in the past two years, with the most popular destination being the US, according to a survey being released on Monday by Accenture, the consultants.

The report provides some of the first industry-wide empirical evidence of “reshoring,” the trend of jobs once outsourced to low-cost emerging economies being brought back to the US.

Although the subject has received much attention, with General Electric the most high-profile example, most of the evidence so far has been isolated and anecdotal.

President Barack Obama has proposed tax incentives for companies that move their overseas operations back to the US and tax penalties for those that do not.

Read more: http://liveweb.archive.org/http://www.ft.com/cms/s/0/115005c6-a225-11e1-a22e-00144feabdc0.html

[ffr]

1. Expect Boehner, McConnell and their merry band of idiots to fight Obama on this one too

Why not, they have on every other issue. Why stop now?!

NO MORE REPUBLICANS!

[freshwest]

2. Obama has been begging these companies to come back. It's finally working with no credit in the M$M.

Doesn't matter except for elect-ability. What matters is that it will be done. Elect Mitt and expect them to all be reduced to the level of workers in China or laid off.

[MADem]

3. Carrot and stick--sounds good to me...

...tax incentives for companies that move their overseas operations back to the US and tax penalties for those that do not.

[Igel]

27. And yet ...

Few "proposals" can be taken to the bank or show up on the bottom line.

If wishes were fishes ...

[Rain Mcloud]

4. Bain Capital

or its subsidiaries are "the greatest company on earth to work for" at least that is what we were told then they proceeded to drum the oldsters out the door.
Every paycheck came with a valuable coupon on the stub for "great deals" on stays at various Marriot and Residence Inn's throughout the country,trouble was the discounted stay was often more than the pay.

Truth be told if anything,anything,goods or money or people come or go into or out of this country then it needs a tax or tariff or fee on it. That includes electronic money transfers.
If the rich fuckers do not approve then let them move to Somalia since they think Government is the root of all evils,where they can live scot free with their hired militia.

It is great that a few Corporations have moved a few factories back here and Americans can work again,takes some of the load off of the Japanese car manufacturer's,FWIW they pay better than the UAW after all the concessions.

A return to the American Way is the answer to a whole lot of troubles,taking money from imported goods so that Americans can compete in the market place and investing that money into infrastructure and education was the vision of Andrew Jackson and is what made this nation the envy of the World.
Not tax cuts for those who send their money and factories overseas to save a lousy buck!
What I have heard and it is probably bullshit but,the prices on Apple products made here versus at FoxConn would be a difference of a quarter a piece,that's right .25,but the difference in the economic growth in the U.S would be staggering.
Would You pay twenty five cents more for an I-Pad that was made here in the U.S?
Sure,I knew You would.

[gateley]

5. "reshoring"

Never should have had to come up with such a word.

[Amster Dan]

25. But I thank you for doing so.

[Jerry Frey]

6. making things is better than financialization

Land represents unchanging wealth. True tangible wealth comes from the land: timber, coal, gold, oil, copper ore and iron ore that is manufactured into steel and then formed into cars and refrigerators. And farming. American farmers can produce much of the food that nourishes China and the Arab lands.

http://napoleonlive.info/economics/manufacturing-creates-wealth/

[deacon]

7. Pretty amazing. Wtg Obama. n/t

[SleeplessinSoCal]

8. I consider this the best news I've heard in months.

[fasttense]

9. Obama offered this in the stimulus package but it was "compromised" away.

Taking away the Tax incentives for companies that move their operations overseas and giving tax incentives for American factories was previously proposed in the stimulus package but it was merely traded away to compromise with RepubliCONS. It's a better idea than those ignorant "free trade" agreements Obama signed.

But I'm NOT holding my breath for this administration to implement such a non-fascist idea.

[Kingofalldems]

10. I like this one.

[Art_from_Ark]

11. And yet, according to the article:

"Although the subject has received much attention, with General Electric the most high-profile example, most of the evidence so far has been isolated and anecdotal."

In other words, this "news" could be little more than feel-good pablum.

[Big_Mike]

26. No, it is happening more and more, particularly in Software

We have cancelled our contracts with an Indian company to provide low cost engineering of software and hardware manufactured by our company. It was just not cost effective, as a US engineer many times would have to re-work what was turned in.

I realize that this is an anecdote and not a statistic, but in speaking across our industry, it is happening.

[LiberalFighter]

34. From what I heard this was happening at Navistar too.

Except the Truck Group President has a hatred for Americans. Keeps trying to use Indian "engineers" to do the job and then having to re-work the product.

[BadgerKid]

12. Good news, but doesn't this give corps ammo

for manipulating the government in the future? "Lower our taxes or your employment level gets it!"

Maybe a majority Democratic Congress can do something to avoid this scenario.

[GTurck]

13. Will they...

Last edited Tue May 22, 2012, 02:08 AM - Edit history (1)

be union or living wage jobs? Did they go off-shore just long enough to break the union and make Americans willing to work for lower wages and no benefits? It all sounds too good and satisfying but there is a faint smell coming from the news too.

[ccavagnolo]

18. The Article sites Caterpillar as returning to the US

but it looks like its employes aren't too pleased with their conditions:

"Nearly 800 workers at a Caterpillar plant near Joliet, Illinois, are entering the fourth week of their strike against company demands for a six-year contract that would sharply reduce their pay and erode working conditions."

[link:http://www.wsws.org/articles/2012/may2012/cate-m21.shtml|

[ccavagnolo]

19. Article:

http://www.wsws.org/articles/2012/may2012/cate-m21.shtml

[Yo_Mama_Been_Loggin]

14. Romney can't be too happy about this.

[liberalnationalist]

16. Raw Money

is not going to be happy about much this year considering he has been runing for president his entire life

[Iliyah]

15. You will NOT hear it on the corporate media

except for maybe Current and the evening shows on MSNBC, other than that, not a peep. Seems like when it pertains positivity for Pres O and his adm., nada, only the negative such as Mayor Booker, H Ford on that BS morning show on MSNBC.

[Shadowflash]

17. Sure.

Now that Americans are willing to take the same jobs at half, or less, of the pay and without benefits, it's time to bring the jobs back.

It say it's 'mission accomplished' for big business.

[awoke_in_2003]

29. I hate to say it...

but my cynical side agrees with you.

[OnlinePoker]

20. Not many new jobs

Since last April, just over 200k new jobs (about 2% increase in employment year over year).

ftp://ftp.bls.gov/pub/suppl/empsit.ceseeb3.txt

You'll have to copy and paste the link for some reason.

[NickB79]

21. This has been predicted now for a few years, for several reasons

One, as China and India rapidly progress from 3rd to 1st world nations, their workers are demanding better pay, working conditions and compensation. If you can't pay a Chinese worker slave wages, you lose a big part of your profit margin.

Second, the rising cost of fuel has made it more expensive to ship goods around the world from Asia to the US. That also eats into profit margins.

Third, energy and raw material costs are soaring in Asia, since they are largely dependent on imported coal and oil to power their economies and imported wood, iron ore and oils for plastics. As these resources become more expensive, they are forced to pass some of the costs on to factories in the form of higher electricity, material and water costs. The US, on the other hand, still has decent reserves of raw materials to draw upon. The real kicker has been the widespread adoption of fracking to release natural gas, and the continued expansion of natural-gas fired turbines as new power plants.

[Igel]

28. No matter.

It's an article of faith that logistics and expenses somehow--in spite of the search for low-paid labor--had nothing to do with offshoring. (If high domestic wages were conceded this wouldn't rise to the level of "faith.&quot

It was a conspiracy. It was union-busting. It was political. It was all sorts of non-logistics-based reasons. So the return has to be polical and not based on simple business contexts.

[rubberducky]

22. Now that the wages have been cut in half!

Oh, yeah cheaper wages,better deals from communities on taxes, people begging for any job they can get ( and being told to be grateful they have any job). Good times are comin` "they" tell us. Be grateful , suck it up people. After all if the rich don`t get richer then who will employ us at one-fourth of what you used to make with no bennies?? But the big boys still want us yo buy thier chinese junk. What a freaking shame.

[xtraxritical]

23. Trickle down sucks Koch's VOTE DEMOCRATIC.

[progressoid]

32. Yep. n/t

[Rosa Luxemburg]

24. Someone needs to go on TV and tell people

[lib2DaBone]

30. American workers have been SO beaten down.. for SO long...

it has to end.

[may3rd]

31. Not many of these jobs make a buck or two above minimum wage these days

half of college grads do not find gainful employment in the fields of their choice.

Lemme know where these factory jobs exist outside of news articles. I would like to follow up

[Mopar151]

33. It's not just the money

It's the cost in manager blood when the Chinee slip another batch of junk past the "lean, certified-ship-to-stock" inspection process, and then you have to pay American wages to, and worse (from many points of view) associate and interact with American workers who really can do the work to fix all the crap. And it was late to start with.