8 Employers Buck Outsourcing Trend, Bring Jobs Back To America

insourcing bringing jobs back to america

For decades, Americans watched helplessly as U.S. businesses outsourced, shipping good-paying jobs overseas. But now, the trend seems to be at least slowing a bit, as some employers are heeding President Obama's call for "insourcing."

Starbucks Coffee Co. is perhaps the latest example of a company bringing jobs back to America, a trend that some are calling "reshoring." The Seattle-based company recently turned to a struggling East Liverpool, Ohio, pottery maker -- not a Chinese one -- to manufacture 20,000 beige coffee mugs emblazoned with the chain's iconic logo, which Starbucks sells for $10 each.

"[E]ven though it's more expensive to manufacture this mug in the U.S. than it would be in China or Korea or Mexico, this is what we need to do," Starbucks CEO Howard Schultz told NPR.

In doing so, Starbucks joins a growing list of companies that are forsaking manufacturing in China, India and elsewhere. Though the coffee chain's effort in part appears to be altruistic, others are basing the move back to America on the bottom line, as they realize the costs associated with overseas production no longer make economic sense.

President Obama (pictured above) praised the shift earlier this year during a visit to a Master Lock Co. factory in Milwaukee. The venerable lock manufacturer recently brought back 100 jobs to its unionized factory in Wisconsin from China, citing rising production costs there.

Last year, a report from the Boston Consulting Group (via MSNBC) said U.S. employers' decisions to bring jobs back to the U.S. "is still in its early stages, but we believe it will accelerate in the years ahead." The report highlighted six employers that have chosen to shift operations back to the U.S. from China and elsewhere:

  • NCR Corp. The company once famous for making cash registers recently moved its production of ATMs to a plant in Columbus, Ga., which is forecast to employ nearly 900 workers by 2014. About 500 of those jobs had already been added by April.
  • The Coleman Co. The maker of camping supplies is ubiquitous among American outdoor enthusiasts. It announced plans to move production of its 16-quart, wheeled plastic coolers back to its Wichita, Kan., headquarters, where it already makes some coolers. Rising manufacturing and shipping costs tipped the scales toward bringing more manufacturing back to the U.S.
  • Ford Motor Co. The iconic Detroit automaker has been steadily adding back jobs that were lost during the Great Recession. They include nearly 2,000 jobs that have been returned to Ford's factories in the U.S. from outside suppliers -- including those in other countries -- thanks to an agreement with the United Auto Workers that allows the company to bring in new workers at lower wages.
  • Peerless Industries Inc. A maker of mounting systems for flat-panel TVs, Peerless recently shifted all its manufacturing from China to a new facility in suburban Chicago, creating 85 U.S. jobs. The move was done in part to reduce operating expenses and regain "complete control" of production.
  • Sleek Audio Inc. The manufacturer of in-ear headphones for iPods and other devices moved its manufacturing to Florida from China two years ago, after company officials learned that the hidden costs of overseas production, including delays and shipping, eroded much of the expected savings.
  • Outdoor GreatRoom Co. Long lead times, which required Outdoor GreatRoom to book orders from its Chinese suppliers nine months in advance, prompted the Eagan, Minn.-based company to shift production of its fire pits and some outdoor shelters back to the U.S. The move created 50 jobs at the company and 100 jobs total, including positions added at suppliers and related companies, spokesman Ross Johnson told MSN Money.






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Edward

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October 09 2012 at 11:36 AM Report abuse rate up rate down Reply
keithya3

they also fail to mention the 800,000 (ilegales he is gona make citzens) obama is given these few jobs too. wake up and get him out he is destoring this great nation.

June 17 2012 at 11:08 AM Report abuse rate up rate down Reply
RVFLSLVB

The article fails to mention these companies and all other's who do it not only receive an additional tax break, but additional monies. Like a "gift" of sorts. Don't believe the Obama hype. Hate when the media fails to mention the catch. Who would be dumb enough to believe these companies out of the kindness of their hearts are bringing back jobs to the U.S. where cost are so much cheaper overseas without some monetary gain.

June 17 2012 at 9:52 AM Report abuse +2 rate up rate down Reply
cayce58

It was all inevitable. When Bill Clinton talked of worldwide trade, that meant the American worker had to compete. Companies had to modernize or move. Most moved for lower labor costs but the liberal rational was that wages overseas would increase to American levels and that an end to overseas poverty would be an end to some of the worlds problems. Reality fell short of that. China, being a wise dictatorship, manipulated its currency and got more than its share for longer than it deserved. The American worker got stiffed by a left wing that didn't care and a right wing whose first priority was not to America but to itself. The right's only goal in this matter is to defund the Democratic party by destroying the unions. We will never see the American worker as rich as he was, but If we are lucky, the jobs will come back and prices will fall to match reduced wages.

June 17 2012 at 8:57 AM Report abuse +1 rate up rate down Reply
Lynn Brownlee

False story - "oBAMA propaganda" - I love the AOL mai, the presentation format, and the management of old mail and new mail delivery. I dislike this propaganda so called "news organization" called Huffinton Post - its totally biased - and is on a mission to promote defiant human behavior and every story (new's item) is slanted and biased toward some socialist ideaology or propaganda to promote oBama . A news organization should tell the story, facts, places, and people. I don't like you trying to tell me how to think, how to live, what to beleive is right or wrong. "just the facts ma'am. If a person is a sexual defiant - I don't want to know about it. Its not news !

June 17 2012 at 8:41 AM Report abuse -2 rate up rate down Reply
1 reply to Lynn Brownlee's comment
tomnetnetnet

You mean tell the truth like Fox News DOESN'T?

June 17 2012 at 8:57 AM Report abuse +1 rate up rate down Reply
jeniusboy58

Right wing, left wing, everything isn't politics. It's called being greedy. If they can make more money by manufacturing overseas, then they're going to do that. That goes for the people that started buying foreign made cars. The argument was they were made better, last lonnger and save me money in the long run. Well guess what everybody. The long run is biting everyone in the ass right now. No jobs. Can't afford to buy any car now. I went to six stores the other day before I could find an American made shovel. I refused to buy a foreign made one and it cost me gas and was more expensive. But it's not just about me or you anymore. We have to start doing what's right for our country, or were history.

June 17 2012 at 8:34 AM Report abuse +5 rate up rate down Reply
lucy444

Thank you David Schepp for showcasing these patriotic companies.

June 17 2012 at 8:32 AM Report abuse rate up rate down Reply
shescookie

American companies divorced us a long time ago. They thought, why should we pay wages here, when we can have slave labor in the East. That worked for a while, but now labor costs are rising in China and elsewhere. So they're bringing it back. Hopefully they'll understand finally, that we are not the enemy. We are their partners. And with jobs, we can also buy THEIR goods, which should be what they also need.

June 17 2012 at 8:26 AM Report abuse +3 rate up rate down Reply
tomnetnetnet

The right wing is interested in one thing and that is MONEY, not America, not jobs. We can spend a billion dollars for a new jet, but OMG the left is out of control because they believe American citizens deserve a little health insurance. The right claims to be the moral and religious keeper of the world imposing their "Do what I say" agenda, forgetting that Jesus was about forgiveness, acceptance, feeding the poor and healing the sick. Our forefathers and God never intended that so few should have so much and so many should have so little.

June 17 2012 at 8:05 AM Report abuse +1 rate up rate down Reply
keverf

I'm not a big fan of Starbucks, But i'll be buying a mug that says made in the U.S.A!

June 17 2012 at 7:59 AM Report abuse +3 rate up rate down Reply

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