Six hundred thousand people joined the workforce in June. Not bad for the dog days of summer. Over all, the economy added 213,000 jobs. That’s because manufacturing is returning to the United States. Sierra American Multi-Systems, manufacturer of the slitting saw arbor, general reach arbor, and other CNC tools says welcome home! Here’s what’s fueling the return.
Demand for cars is high. American-made cars are in demand. Cars and trucks are large. It’s expensive to transport them. The manufacturing costs must be considerably lower to offset the transportation costs. Unions, workers, and auto manufacturers are finally working together again. They have agreed to wages that bring jobs back to the US while keeping production cost-effective. Are Toyota Tundra and Tacoma made in Japan? No, they are manufactured in San Antonio, Texas. So, even foreign manufacturers are setting up shop in the US.
Even if the entire vehicle isn’t being made in the US, there’s a good chance you’ll find parts made in the US. The lithium ion batteries for electric cars are made by Johnson Controls, Inc. As jobs return, the first wave are the high-tech jobs. These jobs require highly skilled workers and close supervision by the company. Operating here in the states just makes both of those objectives easier.
Between 2005 and 2016, wages in China tripled. Manufacturers moved offshore for lower wages, but wages offshore are rising. Hourly wages in China are comparable to other middle-income countries. That makes Chinese labor more expensive than labor from Argentina, Brazil, and Mexico.
Add rising wages to the rising cost of transportation and offshore production savings evaporate. Vietnam was projected to have real wage growth of 7.2% for 2017. That’s the highest on Earth. Meanwhile, back in the US, wages may be higher, but they aren’t rising at the same rate as other parts of the world.
Transportation costs and logistics nightmares make “over there” seem even further away. Manufacturing overseas requires a sophisticated, expensive supply chain. One kink in the chain and your factory can sit idle.
Finished products need to be shipped back to the US. Shipping costs, whether via air or sea, have increased. In addition, companies like Amazon have conditioned buyers to expect immediate delivery. When you ship two continents away, its hard to deliver quickly and inexpensively.
Sophisticated equipment requires a sophisticated employee. That’s someone that can tell a slitting saw arbor from a general reach arbor and knows the ins and outs of flycutting. The more advanced the equipment, the more advanced the employee.
This advanced, skilled employee is well paid. Especially if it is an area where skilled machinists are scarce. A CNC machinist may get paid more, but because their CNC operation is so much faster and accurate than manual machining, they get more done faster. They actually outproduce the manual worker and thus drive down the labor cost. This productivity makes it more cost effective to repatriate the job back to the US.
A Slitting Saw Arbor for Every Machinist
Herbert Hoover may have advertised a chicken in every pot and two cars in every garage, but he failed to deliver.
Sierra American Multi-Systems advertises a slitting saw arbor, multistop or accufeed for every machinist and they’ve been delivering for over 25 years.
Every slitting saw arbor, general reach arbor, tool, and tray made by Sierra American is made in the United States. Manufacturing for American machinists by American machinists. Get a 5 year warranty on each item too.
Don’t settle for cheap, foreign imitations. Demand the best. Ask for Sierra American by name. So, be a proud part of manufacturing in America. Join Sierra America in welcoming these jobs home!