October 3rd, 2012

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New Study Says Outsourcing to Americans on the Rise

Maryland

Maryland Gov. Martin O’Malley (right) was very vocal about bringing outsourced manufacturing jobs back to Americans during his Democratic National Convention speech. A new study shows U.S. firms are paying attention, which could mean more employment opportunities for people with disabilities.

A new study indicates more U.S. manufacturers are considering “reshoring” their overseas operations, or have already done so, bringing many previously outsourced jobs back to American workers.

The study was co-authored by Tobias Schoenherr, an assistant professor in the Department of Supply Chain Management at Michigan State. Science Blog reposted the university’s press release, which said that 40% of surveyed manufacturers believe that outsourcing to Americans is on the rise, while 38% indicated that their direct competitors have already done so. Schoenherr called the results “surprising,” but recites a litany of factors that makes you wonder why more operations aren’t considering the idea:

Fueling the trend are rising labor costs in emerging countries, high oil prices and increasing transportation costs, global risks such as political instability and other factors… In addition to rising costs and global risks, Schoenherr said companies are concerned with the erosion of intellectual property overseas and product quality problem.

Schoenherr added that in his personal communications with firms, he sensed “a genuine desire to help the U.S. economy and bring back jobs.” If that’s the case, the emphasis that President Obama’s administration has been putting on “insourcing” since his State of the Union address, and which has carried all the way through the Democratic National Convention, is having the desired impact.

Another contributing factor is the media attention brought to unrest and poor working conditions in overseas assembly and fulfillment operations such as Foxconn. A recent Forbes post by blogger Judy Owen, entitled “Could Situations Like Foxconn be Avoided?,” offered this “what if” scenario:

So, what if some of our domestic corporations would re-invest in their homeland? What if Apple would bring a larger portion of its manufacturing back to the United States and focus on hiring people with disabilities?  There are many organizations that have proven that a workforce with disabilities can compete toe-to-toe with their non-disabled peers in the area of assembly, packaging and sorting.

Owens operates a company that helps Floridians with disabilities find jobs, which they sorely need because the state lacks adequate funding to provide the support services to approximately 19,000 residents who are eligible. Contract services and employment opportunities for these individuals “can end reliance on government programs,” she writes.

This is a terrific message to share during National Disability Employment Awareness Month. As we have demonstrated in numerous posts, these individuals have proven their ability to perform light assembly, sorting, packaging, and other fulfillment duties for a wide variety of products, with results that makes the decision a sound business investment as well as a way to make life matter more for these Americans in need of work.

Comments?

Image by Maryland GovPics.

2 Responses to “New Study Says Outsourcing to Americans on the Rise”

  1. I’m not worthy to be in the same forum. ROTFL

  2. click here says:

    “concentrazioni di bario in aria, acqua ed nel terreno possono essere superiori alle concentrazioni naturali in molti luoghi.”Non significa nulla: di quanto superiori ed in quali luoghi? Scrivendo in quel modo posso dire tutto ed il contrario di tutto.

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