Yesterday I had the pleasure of attending the Iowa Association of Business and Industry Legislative Briefing and Reception. After a quick overview of the upcoming Iowa legislative session, I had the opportunity to speak with some top leaders in the state about what we can expect in 2017.
The trajectory of the country changed on November 8th. The tone and topics in the news have been very different since the general election. This is because President-elect Trump has been very active since his election, and we are already starting to see a picture of what his economic policies will look like after he takes office January 20th. Manufacturing has been a constant in the national news since the Presidential election. Vehicle manufacturers have been split between plans to send jobs to Mexico and China or re-shore them to the United States. Mr. Trump has been willing to call out companies like Ford and GM when they announce plans to move jobs. Mr. Trump appears dead set on increasing the number of jobs in the manufacturing sector during his upcoming tenure.
The question becomes “what is it that manufacturers can do in response?”
The truth is, until policy is enacted, there is no requirement to implement any change. Conversely though, it may be time to start putting together plans for American-based manufacturing. We see more now in this technology-driven world that the team that can execute wins. The only way that your team can do this is by putting together a plan that you can execute off of.
What is right for each company is going to vary based upon the profile of your company. The question that should be asked is “why did we outsource in the first place?” Was it to stay lean? Or was it simply a financial decision to take advantage of the low cost labor of work overseas? The answers to those questions should help guide the company on its path to determining the best actions moving forward with reshoring work.
stay lean and focus on your company’s core competencies
If you are still wanting to stay lean and focus on your company’s core competencies, then using a manufacturing services contractor could be within your company’s best interest. These partners will take care of everything for your reshoring initiative from sourcing the components, to assembly, packaging, warehousing and fulfillment. This can allow your business to continue to focus on the sales and marketing efforts that have lead you to the success it has achieved already.
Manufacturing has been the subject of regular water cooler meetings since election night, and will continue to be top of mind for many of us in the months to come. Sources at last night’s event have confirmed that the conversations are happening, and we need to be prepared for changes in our trade policies. As President-Elect Trump heads into his first 100 days, we should all be keeping a close eye on the policies and regulation changes that might be coming, and be prepared to act when necessary.
If your organization is looking to put together a reshoring plan, give us a call and mention our blog post for a free consultation. Contact Schafer Solutions