21st January 2013 -- Last quarter, Tim Cook announced that Apple would invest $100 million into US
manufacturing. Although a small portion of Apple’s total net worth, the announcement is a
high profile example of the recent onshoring trend which is predicted to be at the forefront of
company agendas throughout 2013.
Onshoring, the movement of returning outsourced manufacturing back to the US, first began
with labor issues in China. China’s low labor costs once compelled companies to outsource
production abroad. Today, wages are five times higher than they were twelve years ago and
are estimated to keep continue rising at 18% a year according to a recent article in the
Huffington Post. Companies were also prompted to reconsider the benefits of offshoring
when Chinese workers began to resist poor labor conditions in the form of strikes and
suicides. The problem became so serious for Foxconn Technology Group, the largest
contract electronics assembler, that they began to automate their operations in China.
Operating automation abroad, however, is no more effective than operating automation here
in the United States.
For companies wishing to onshore production, automated robotics will play a key role. CEO
and President of Automation GT, Simon Grant, states “we’ve seen a trend with companies
wishing to be ‘reshored’. They are not satisfied with the quality of products being produced
abroad and managing that from afar is a real challenge”. With automation, companies are
able to bring manufacturing back to the US, respond to changing market demands quicker,
protect Intellectual Property and have total quality control. “From a financial and a logistical
perspective, automated production in the US just makes sense” states Grant.
In a time when consumer expectations for superior goods and services continue to grow,
operating closer to the demand allows companies to reduce lead times and keep up with the
market’s incessantly changing demands. Automation also offers the opportunity to
reposition labor to carry out different tasks. For example, an installed Automation GT system
allows a worker to advance their career from a machine operator to a machine supervisor
while the employer improves productivity and gains in quality control.
The importance of onshoring has been acknowledged by Obama, with his proposal of a tax
relief for companies that return jobs to the US. Obama also alluded to end the favorable tax
treatment for companies who move work overseas, which will encourage the manufacturing
pendulum to swing back to the US.
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Automation GT, based in Southern California, has already begun to respond to the shift. The
designer and manufacturer of custom automated systems have offered clients wishing to
bring production back to the US a free consultation and review of their line. “We expect to
see onshoring really pick up in 2013. We are excited and ready to consult with clients during
their transition” states Grant.
About Automation GT
Automation GT design and manufacture machines for applications that are mission-critical
and that require exceptional precision and reliability. They have developed a reputation for
perfection through design.
Their core competence is built around automation. Combined with focus on design
excellence, this has facilitated growth in some of the world’s most advanced industries.
Automation GT has long-standing relationships within industries such as the Life Sciences -
Pharmaceutical, Biotechnology, and Medical Devices. www.automationgt.com
Contact: Will Selby / email@example.com / 01202 828266