The Trans-Pacific Partnership Agreement
According to recent projections, The Trans-Pacific Partnership Agreement is projected to reduce the rate of reshoring and manufacturing jobs being brought back to the U.S. Combined with the high U.S. dollar, the impact is likely to be severe.
What a dismal projection.
Who can argue against the importance of returning manufacturing operations back to the United States, as opposed to offshoring production to overseas locations, as a way of boosting economic growth?
According to Harry Moser, founder of the Reshoring Initiative, there are hidden costs of conducting offshore business. He states that, “most companies don’t look beyond quoted unit price to make [the] decision of where to source and ignore 20% or more of the total cost of offshored products.” Harry Moser’s Total Cost of Ownership (TCO) procedures identify many of the hidden costs of sourcing offshore. Among others, additional offshore costs may include:
- Currency fluctuations
- Offshore contract management
- Legal liabilities
- Quality issues
Throughout recent years, there has continued to be an uptick in companies bringing manufacturing operations back to the States. Leading the pack of reshoring businesses, are manufacturers producing electrical equipment, appliances and components, transportation equipment, and apparel. Top reasons noted for domestic production include: improved delivery time, quality, the marketing benefit of offering a product made in the United States, and the reduction of freight and wage costs.
Why is Laser 1 so passionate about reshoring?
The most exciting prediction by the Reshoring Initiative is, “the $600 billion/year trade deficit would be eliminated; the U.S. economy would add 3 million manufacturing jobs while adding 9-12 million total jobs because of the multiplier effect of manufacturing jobs; reduce unemployment by 4%; cut the U.S. budget deficit by about 50%, and increase manufacturing output by 25%.”
That’s the direction we want to head.
The employees of Laser 1 strongly believe in American-made products and are dedicated to improving the economic growth of our nation.