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Economy
Lots of Americans are eager to purchase American made goods over foreign imports, but what they don’t know is that there may be more benefits to this choice than meets the eye. Many businesses and researchers alike are looking into the real effects of the “Made in America” choice and the results they’ve found are astounding. This choice may have a larger influence on the future the future than most would expect. 


Job creation

Simply put, buying American made goods creates American jobs. Not only was there a direct impact on the company producing the product and its employees and owners, but there was also a direct correlation to the companies providing it’s equipment, utilities, inventory and services. 

In order to keep the economy strong and active, money needs to keep moving. Its like blood and when its spent on foreign-made products, it wounds the economy. According to the researchers, purchasing American Made goods has double the impact on the domestic economy compare to foreign made goods. Every time you buy an imported product, its like cutting your neighbor with a small knife. Over time the wound gets bigger and slowly drains more and more money from the economy. It isn’t just about being patriotic, it’s about keeping the economy healthy. 

Lowering your long-term cost

If you’ve ever been on Amazon, or at one of the countless superstores within our country like Walmart, you’ve no doubt seen the tides wave of cheap imported products from China, Vietnam and other countries. These product may every inexpensive but due to their poor quality they don’t last very long. Businesses are using this to their advantage. By creating these cheaper products, they are ensuring that the customer will be back to replace the product sooner which increasing their sales margin. According to the Boston Consulting group, 60 percent of Chinese consumers are willing to pay extra for a higher quality American Made Products than a cheap “Made in China” product 

Better for families

Most foreign countries have far less thorough product safety standards than the United States. This leads to far more recalls and safety issues compared to American Made goods which have to follow strict consumer protection laws.

Year after year, companies continually invest in innovation and research and development. Specifically, there’s been an increasing surge in research for digital technologies, automation and new material and most of these leading companies in innovation are based in Georgia, Chicago, California and New York.

Addressing poor conditions

Those same countries that don’t enforce rigorous product safety laws also don’t enforce the same worker safety and child protection laws seen in Western Countries. This makes it difficult for companies to compete businesses willing to take advantage of their own people for a cheaper cost. In other words, when you buy American made goods, you’re encouraging a higher standard of working conditions. In addition to better product and worker safety laws, U.S regulations are considerably cleaner for the environment too. Every single American Made purchase gives us more control over the future of our economy   and country, which in turn helps us set up the next generation for success as well.

Interested in learning more about American Made Matters? Read about the recent wave of Reshoring

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Innovation
A year ago, a lithium-ion battery facility in Hornsdale, South Australia was able to stabilize the region’s precarious power grid  and saved around $40 million during the process. The facility was able to accomplish this outlandish feat with the help of Tesla’s Powerpack batteries. Thanks to battery storage, global electricity grids are able to better accommodate the fleeting nature of renewable energy sources like solar and wind. But for these renewable resources to work on a large utility scale, they require an enormous amount of battery storage. After the overwhelming success of Hornsdale, which was the world’s largest Lithium-ion battery at the time, Tesla has already begun work on a new battery specifically designed for utility scale projects called Megapack.

Arriving at the site fully assembled, the Megapack aims to provide an easy installation process and greatly reduce the complexity of large-scale battery storage, while still providing up to 3 megawatt hours of storage and 1.5 MW of inverter capacity. According to Tesla, “Using Megapack, Tesla can deploy an emissions-free 250 MW, 1 Gigawatt hour (GWh) power plant in less than three months on a three-acre footprint—four times faster than a traditional fossil fuel power plant of that size.”  The Megapack can also reduce the loss incurred from converting to AC current by connecting directly to the solar energy’s DC output.

In order to monitor and control the Megapack systems, Tesla designed a software called Powerhub, which each system connects to. The system, according to Tesla, is “…an advanced monitoring and control platform for large-scale utility projects and microgrids. Powerhub can also integrate with Autobidder, Tesla’s machine-learning platform for automated energy trading.”  More than 100 GWh of energy has already been dispatched in global electricity markets by Tesla’s customers using Autobidder. Through a combination of server-based and over-the-air software updates, Tesla plans to continue improving the Megapack, much like Tesla’s famous electric vehicles.

A Megapack is currently planned to be installed in the upcoming Moss landing Project with the Pacific Gas and Electric Company. The Megapack will be able to store excess energy from renewable resources like solar or wind and then disperse that stored energy when the local utility grid can’t provide enough power. This will offer an alternative option to the natural gas “peaker” that is currently used to support the grid’s peak loads.

According to Tesla, “We took everything we know about battery technology to enable the world’s largest energy projects. A 1 Gigawatt hour (GWh) project provides record energy capacity—enough to power every home in San Francisco for 6 hours.

Wanna learn more about Tesla’s endeavors in renewable energy? Check out the Tesla Power Wall.
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Economy, Industry
Danica Lause is the owner of Peekaboss, a company that sells hats with a hole for people to put their ponytails through. She’s been manufacturing these hats in China for nearly four years and has faced nothing but difficulties throughout the whole overseas manufacturing process. “I was unable to achieve the level of quality control our brand requires in any of the factories we worked with in China,” says Lause. After realizing the factories were incapable of producing the hats on machines, she tried to have them made by hand, but upon receiving the shipment of hats she found out that the hole placement and the sizing was off for most of them.


Lower labor costs have attracted both fortune 500 companies and small businesses alike to overseas manufacturing, but it does have it’s downsides. Even before Trump’s tariffs, there was already a lot of complications and difficulties with working with overseas companies. Most small businesses don’t have the resources to handle problems like legal disputes or production deadlines. “It’s a vexing problem for anyone,” says John Gray, a professor at Ohio State University’s College of Business. “but being small and offshore makes it harder because large companies will get more attention from the suppliers.” Many of these companies suffer through it but some look towards the US to solve their manufacturing needs. Lause began to look for manufactures in the US to produce her hats and she quickly realized that it’s not as expensive as she thought it would be. She found some engineers who had figured out how to manufacture these hats on machines and in 2016 she moved her facility to Germantown, Wisconsin.

When the CEO of Beyond Green, Veejay Patel was looking for a manufacturer to produce their compostable plastic bags, he naturally chose India, as that was his home country and he had previous involvement in plastics manufacturing there. But earlier this year Patel and his co-owners began to look for manufacturing opportunities in the US. “Quality control was not up to our needs,” says Katrina Hart, coordinator of business development for the Lake Forest, California, company. “Customers were complaining that bags, including those used to contain produce in supermarkets, had slits, making them unusable.” Not only would they improve quality by moving the US but they could also cut back on cost by removing the need to ship them from India to California. This shipping method was not only costing them more money, but it was also contradicting their environmentally friendly message they were trying to preach so they started up production in Lake Forest earlier this year. “This reduced our costs, allowed for a better handle on quality control, and now we are able to contribute to the business and economic success of the community that most of our employees grew up in,” Hart says.


There are other issues besides just quality that arise from overseas manufacturing. A 2017 paper studied some of these problems that medium to small sized business ran into. One case told of a supplier that changed one of the components of their products without even consulting the client. In another, the client had discovered that the supplier had cheaped out and used a thinner fabric for the client’s clothing. This paper quoted on of the executives as saying “What you actually get as your final product doesn’t exactly match what you originally purchased,” These smaller companies have to negotiate with the supplier to get their products as the order them, but most of the time the supplier fights back and they find themselves in a legal dispute that they more often than not can’t win. “It’s harder to get an accord across time zones and cultural and language differences,” says Lee Branstetter, an economics professor at Carnegie-Mellon. This isn’t a problem for large companies because they often have representative at these oversea factories to make sure the product is manufactured as contracted but small businesses don’t have this luxury. All they can do it hope for the best.

Aaron Muderick, owner of Crazy Aaron’s Thinking Putty, initially look for a manufacturer in China to produce his putty toy.  The initially batch was produced with no complaint, but after receiving two defective batches Muderick hired a representative to ensure he received a quality product. “It helped things get better but it also reduced the cost savings because that person was getting a piece of the action,” Muderick says. After searching for a new factory to produce his putty, he began to get more and more worried that one of the employees at the manufacturer would steal his putty formula, so ten years ago, he began to produce the putty in house at Norristown, Pennsylvania. “It didn’t feel right in my gut so we ended up going on our own path,” Muderick says. Another issue with oversea manufacturing is that the time and money put into traveling can be burdensome for business owners. This helped persuade Lause to reshore her business back to the US. “I did not wish to spend significant time in China away from my small children, husband, aging parents and life back home,” she says.

 

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Economy, Industry
According to users of ThomasNet.com, sourcing activity for Design Engineering Services has been 14 percent above the average for 12 weeks. In addition to that, other related categories like Prototype and Reverse Engineering Services are both up 15% month-over-month 


Finding skilled design engineers and other talent has been an increasingly hard task that many manufacturing companies are struggling with. According to a study done by Workable.com, engineering jobs are the hardest jobs to fill and on average take the longest to fill, taking 62 days for engineering jobs and only 47 days for other jobs. Because design engineers are in short supply, this time can be drastically higher for the manufacturing industry.

After looking at the facts, it makes sense why the data from ThomasNet.com is showing a growing number of companies are looking towards third-party engineering service companies to outsource their design work. The talent offered by most turnkey service companies is more often then not very reliable, however at some point our government leaders and US manufacturing companies are going to have to get together to address this growing problem facing the industry.

A short-term solution to this growing issue would be the support and advancement of apprenticeships and tradeschool, however a more long-term solution would require more work. Since most engineering jobs require a college degree, we need to focus on High school student to try and encourage them to pursue degrees in engineering by offering them incentive and opportunities to reach for these high paying, rewarding jobs. If we can attract more young people, especially more girls to these engineering fields than we would be able to fill those jobs a lot faster.

Below are the top ten service categories according to ThomasNet.com

  1. CNC Machining
  2. Lumber
  3. Printed Circuit Boards
  4. Steel
  5. Plastic Injection Molding Services
  6. Packaging
  7. Nutritional Supplement & Vitamin Contract Manufacturing
  8. Corrugated Boxes
  9. Plastics
  10. Non-Destructive Testing Services
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Economy, Industry

Last year, the amount of companies participating in reshoring and foreign direct investment reached record breaking levels with an increase of 38 percent from 2017.According to the  Reshoring Initiative, the announcements of new FDI and reshoring is estimated to total over 145,000 jobs. Since 2010, the amount of manufacturing jobs brought to the United States from other countries has risen over 757,000. “The cumulative announcement of more than three-quarters of a million jobs since 2010 has driven 31% of the total increase in U.S. manufacturing jobs during that period and 3.3% of total 12/31/18 manufacturing employment of 12.8 million.” The United States has faced greater competitiveness due to corporate tax and regulatory cuts, making it a viable contender within the international market. Read the Reshoring Initiative 2018 Data Report for more information:

Quick Reshoring Facts

  • 59% of all off-shoring goes to China. However, FDI jobs have decreased by 12% in 2018.

  • Cheap shipping and cheap products are the reason to offshore for many businesses.

  • Government incentives, geographical convenience, high productivity and quality, and good reputation are the main reasons to stay domestic.


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Economy, Industry

The manufacturing industry business conditions continue to improve and the outlook remains positive. US Manufacturing reports from March show increased factory activity for the fifth straight month with factories expanding despite a strong U.S. dollar, which makes American products more expensive in overseas markets. They also have recovered from big cutbacks in the energy industry, which reflected low oil prices. Factory orders were up 5.5 percent from a year ago  with total shipments of manufactured goods increased 0.2 percent after surging 2.5 percent in December.  Manufacturing, which accounts for about 12 percent of the U.S. economy, is regaining its footing after being buffeted by lower oil prices and a strong dollar. The truly successful companies know that to be successful, outsourcing deployments require finding the right partner. Enser’s extensive experience as a leading engineering services company uniquely positions us to provide the best and most cost-effective solutions. ENSER can provide integrated solutions from the best tooling solutions and custom developed equipment & machines, to test and measurement devices, to prototyping, component and part fabrication, we deliver cost effective solutions reliably.

Custom Machine, Tooling and Build Services
  • Enser brings leading reliability in both Custom Design and Build to Print services to increased factory activity.
  • From our experience we have developed a completely USA based fabrication program that takes the unknown out of off-shore manufacturing.
  • Using our Quality Process to increase factory activity that has been developed over the past 70 years, we enable our customers to meet their “time to market schedules” 
  • We utilize local staff to provide a constant interface to our clients and ensure our manufacturing and quality team clearly understands the requirements and scope of the engagement.

Services offered out of our Engineering and Technology Development Centers include:
    • Systems Engineering
    • Design validation
      Systems Integration
    • Software & Controls Development
    • Prototyping
    • Fabrication
    • Tooling and Fixtures
    • Test Systems
    • System test and Debug

    • From the Engineering and Design of your product to the manufacturing, tooling and testing, to supporting your process engineering, Enser can deliver superior cutting-edge solutions to increased factory activity. Since 1947, Enser’s reputation has been built on the quality of service and firmly believe long-term customer satisfaction is the cornerstone of our success. Call us today (877) 367-3770 to schedule a visit to discuss the options available for your specific needs.
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Press Releases
FOR IMMEDIATE RELEASE November 5, 2015 American Made Matters Day: A Call-to-Action for Consumers ADAMSTOWN, P.A. – American Made Matters, an organization dedicated to educating consumers on the importance of buying American-made products, is holding the 3rd annual American Made Matters Day on November 19th. The purpose of the event is for consumers to buy at least one U.S.-made product on this day, and to encourage consumers to buy made-in-USA products throughout the upcoming holiday season to show their support for US manufacturing. November 19th has been declared American Made Matters Day not just because of the positive impact that manufacturing has on jobs, but also on local communities, the U.S. economy, product safety, the environment, and the future of America. A resolution has been passed in Pennsylvania and Colorado declaring November 19th as American Made Matters Day, and a resolution has been introduced in Alabama and New York. To celebrate American Made Matters Day, events will be held in thirty locations throughout the United States. These events will show the two American Made Matters videos, provide information to consumers, and give consumers the ability to buy U.S.-made products. Some locations will offer food and music. Over forty American Made Matters members, including Todd Shelton, Carole S. Miller Handbags, hats.com, K’NEX, and Ball and Buck, will be offering online sales and specials which will be available on the American Made Matters blog. Bollman Hat Company will again conduct tours in their historic Adamstown, PA factory, the oldest hat factory in America, as well as launch a Kickstarter campaign to bring the iconic Kangol 504 hat production from China to Adamstown, creating 41 new jobs in Pennsylvania. Tacony Manufacturing, which proudly builds Maytag Vacuums, Riccar Vacuums and Simplicity Vacuums, will be offering an open house with factory tours, food and door prizes at their facility in St. James, MO, from 10 AM to 2 PM. Joy Petty, Director of Marketing, said, “We’re delighted to be hosting this American Made Matters Day event to showcase not only the pride we put into every vacuum we build, but also what several other manufacturers in the area are doing to support the USA. After hearing more about the American Made Matters movement, you’ll be amazed at the power you hold in your pocketbook.” Don Rongione, President and Founder of American Made Matters, says, “Buying American made products creates jobs, stronger communities, independence and security for our country, an improved national economy, safer products, and a more environmentally friendly planet. Each of us can make a difference every time we make a purchase. American Made Matters Day was created as a call to action to use our individual purchasing power on November 19 and during the holiday shopping season to make a difference for our future.” The U.S. Bureau of Economic Analysis reports that every $1 spent on American-made goods invests an additional $1.32 in the U.S. economy. If Americans dedicated just a small portion of their holiday shopping budget to buying American-made goods, it could have a very positive impact on our economy. In fact, according to ABCNews, if each American family spent just an extra $49.95 on American-made goods, the spending would generate 150,000 American jobs. About American Made Matters®: American Made Matters® was launched on July 4, 2009 by the Bollman Hat Company, America’s oldest hat manufacturer. It is the only organization committed to promoting American-made goods that is run by manufacturers. It has over 375 member companies located in 45 states of the 50 US states. For more information, visit http://www.americanmadematters.com, or like them on Facebook at https://www.facebook.com/AmericanMadeMatters. ###
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