The responses received thus far from the launching of my new and improved website, www.EngineeringDesignSolutions.com have been simply fantastic. By far the general consensus is positive and some really sharp recipients have made some comments that, when implemented, will make it even better. It is really great to have such knowledgeable and caring readership. Please feel free to share your comments and ideas, as I am a good listener.
About 6 months ago I began a discussion of the topic known as reshoring. For those new to this term, it basically means: The concept and process of returning jobs back home from overseas. (Note: There is a whole section on the website, a glossary, specifically placed there to define technical terms, which appear in any text in the website. It can be found by clicking on the tab “Technical Terms.” Also, you will note that these words are highlighted. Just move your cursor over them in the text and the definition will appear.)
The fact that the term and its concept is gaining popularity is attested to by the fact that it is appearing more often in mainstream media. Regardless of what some will say is causing this, the basic, bottom line reason for it is that it is simply good business to do so. This comes about by the realization that the cost of a product is not just the “cost of the product.” Let me explain.
Some of the factors that must be included in the cost of a product delivered to your warehouse door are: the value of the loss of use of the deposit paid when placing the order for tooling and raw materials, the time to build, test and accept the tools, the time it takes to actually produce your order, the balance of the money due (must be paid in full) before the merchandise gets loaded on a ship, the time spent in transit, the final customs duties and shipping from the port of entry to you warehouse. Those are definite costs that must be factored in. Now, as they say on TV, “But wait, there’s more!”
Even though all of the technical specifications of the product and process were meticulously documented, if you are dealing with someone for whom English is not their native language, the possibility of “hidden” errors being introduced need to be considered. If this isn’t discovered until you unpack your shipment, you are in real trouble. Even if it is picked up earlier, the back and forth of communication cycles, 12 hours and half a planet apart, will add a lot of time to the whole process. That is, assuming that phone calls and emails can get the job done. What if it doesn’t and you have to send a couple of engineers over to sort it out? The cost of food, travel and lodging, getting the actual work done, explained or however else sorted out, must be added in. And what about the work these engineers were in the midst of doing when told they would have to go overseas? This now results in a backlog for them with the delays cascading throughout the whole area.
(I am sure that some of you can add to the list of items outlined above. If you would like to share your experiences, please feel free to do so. No names [either individual or company] will be mentioned.) It comes down to:
Is it better to be in a position to just pick up the phone and talk to someone in real time, who definitely understands you? And where design changes can be rapidly implemented? And where you can visit the manufacturing plant in a matter of hours at worst, or just by walking out of the office and into the manufacturing area at best? Well, it seems that more and more companies are answering these questions with a resounding, “Yes!”
Will all the jobs that have been sent overseas be reshored? I don’t think so, as in specific instances it is the better way to go. However, I do believe that many of them will be brought back here. I also believe that American workers are ready, willing and able to get the job done with the drive, desire and ingenuity that has characterized this great nation for a very long time.
Engineering Design Solutions is ready to assist you with your product and tooling design issues, along with manufacturing productivity improvements. There is a great deal of work to be done. We can help you with some of it.
Please keep your comments and feedback coming. I hope you visit my new website and return to it often for new information and postings. Thank you.