March 28, 2012 Harry Moser, founder and president of the Reshoring Initiative, spoke before the United States House Committee on Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies entitled “American Manufacturing and Job Repatriation.”
Moser’s purpose before the committee was to encourage and promote the collaboration between government, industry, labor and academic communities to work together to reshore American jobs. He explained how his own organization has developed the TCO (Total Cost of Ownership) Estimator that simplifies the process of calculating costs of outsourcing versus reshoring. Many companies miss certain costs in making outsourcing decisions, and his free tool helps them make more appropriate decisions.
Many examples of companies engaging in reshoring were provided: GE, DuPont, Caterpillar, Exxel Outdoors, NCR, and others. These examples were just a fraction of those engaging or actively pursuing reshoring.
“Reshoring will occur more rapidly if lawmakers do their part to make the United States a better place to do business. American manufacturers face an uphill battle to compete with their foreign competitors. In just a few weeks, the U.S. will have the dubious distinction of having the highest corporate tax rate in the developed world. Real trade enforcement, an end to currency manipulation, regulatory reform and a broad tax overhaul are critical to restoring business confidence in the United States and leveling the global playing field.”
Additionally, Moser suggested a greater push on STEM subjects (science, technology, engineering, math) in K – 12, more technical training in high schools, and a shift of perspective in how the culture views advanced manufacturing jobs. He pointed out that despite high unemployment and underemployment, manufacturers “are struggling to fill open positions for engineers, IT specialists and skilled tradesmen.”
“Tackling the skilled labor shortage and the other issues I have discussed is going to take a longterm commitment, a reorganization of existing resources, and a willingness to make important investments in our future. I am confident that if our government, industry, labor and academic communities work together and better utilize existing resources, we can make great strides in revitalizing American manufacturing and promoting strong economic growth. Simply beginning to seriously address some of these issues will significantly improve the chances of convincing companies to reshore existing business and invest in new factories in the United States. This is all part of minimizing the United States total cost of ownership – making the U.S. a more attractive place”
Harry Moser’s full testimony before the committee can be found at this link.