An analysis by the Boston Consulting Group concludes that U.S. could gain 2 to 3 million jobs through in sourcing of manufacturing jobs in the next five years.
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The case study in this proves the point of the study by the Boston Consulting Group. There are small manufacturing companies flourishing in the US in an arena many have conceded. If anyone would like to put a spotlight on similar stories, please contact me at rsayre@empoweredmunicipality.com.
Posted by PA Views on 2011-11-18 07:02:48
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Posted by PA Views on 2011-11-18 05:22:45
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It was a good study. A basis for the state to be well or better.
Posted by princessB on 2011-10-29 04:00:55
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A case in point in Pennsylvania is Nittany Paper Mills of Lewisberg, PA. This small manufacturer of paper towels and other products has moved several times in the last 5 years to accommodate expansion and is committed to hiring full-time employees, with benefits. So while there is a constant drum beat of how manufacturing jobs being shipped out over seas, the report by the Boston Consulting Group and the record of achievement by Nittany Paper Mills make a strong case for a customer focused, quality oritented company achieving success in what would seem to be a hum-drum product area, paper products.
An insight into what might contribute to this is the Mission Statement and Vision Statement from the company iself.
Mission Statement
"Our goal is to differentiate ourselves from our competitors by providing products on a timely basis that have value added characteristics that the end consumer demands. Touch free dispensing, paper made with 100% recycled fiber, economical prices, and customer service that exceeds expectations will drive our product offering to dominance in Pennsylvania and surrounding states."
Vision Statement
"Our vision is the establishment of a selective distribution network through out North America that offers innovative washroom products, that not only fulfill the requirements for our (touch free) society but do so in an economical way."
The BCG analysis identifies those broad industry clusters that are most likely to reach a “tipping point” by around 2015—a point at which China’s shrinking cost advantage should prompt companies to rethink where they produce certain goods meant for sale in North America. In many cases, companies will shift production back from China or choose to locate new investments in the U.S. The U.S. is also expected to become a more competitive export base in these sectors for Europe and Canada.
“A surprising amount of work that rushed to China over the past decade could soon start to come back—and the economic impact could be significant,” said Harold L. Sirkin, a BCG senior partner and lead author of the analysis. “We’re on record predicting a U.S. manufacturing renaissance starting by around 2015. Now we can be more specific about which industries will return and why.”
In addition to transportation goods, electrical equipment/appliances, and furniture, the sectors most likely to return are plastics and rubber products, machinery, fabricated metal products, and computers/electronics. Together, these seven industry groups could add $100 billion in output to the U.S. economy and lower the U.S. non-oil trade deficit by 20 to 35 percent, according to BCG.
The tipping-point sectors account for about $2 trillion in U.S. consumption per year and about 70 percent of U.S. imports from China, valued at nearly $200 billion in 2009. The job gains would come directly through added factory work and indirectly through supporting services, such as construction, transportation, and retail.
“This does not mean that factories in China will close,” noted Michael Zinser, a BCG partner who leads the firm’s manufacturing work in the Americas. “Instead, more of their output will be consumed in the fast-growing domestic market and elsewhere in Asia.”
We will be keeping our eyes peeled for other companies that are rising to the challenge and to see if the predictioons from the Boston Consulting Group play out. Stay tuned.
