In his Jan 25, 2011 State of the Union address, President Obama focused on the need to create jobs, especially manufacturing and technical jobs, and the challenge of doing so in an increasingly competitive world. The Illinois Reshoring Initiative today announces its program to apply the principles of the national Reshoring Initiative to revitalize Illinois manufacturing by reshoring: bringing back many of the most desirable jobs that have been lost to decades of offshoring. Following an Illinois success, the program will be replicated in other states.
The Illinois Reshoring Initiative is an industry-led program intended to bring orders and jobs back to Illinois manufacturing companies. The Initiative will achieve this goal by helping manufacturers recognize that local production actually reduces their TCO (Total Cost of Ownership) of purchased parts and tooling, improves their balance sheet and makes product innovation more effective.
The Initiative is a five-step program that helps large manufacturers and their local suppliers recognize the total P&L impact of offshoring and the benefits that both will obtain from reshoring. The program also trains the suppliers how to more fully meet the expressed needs of their local customers and then brings the large companies and the local suppliers together to bring orders back. Finally, the actual work brought back will be measured.
The program launches with a March 16 conference “Rethinking the Total Cost of Offshoring.” This program features keynote speakers, Peter M. Perez, Deputy Assistant Secretary for Manufacturing, U.S. Department of Commerce’s International Trade Administration and Mr. Harry Moser, Founder of the national Reshoring Initiative and former President of AgieCharmilles, a Lincolnshire, IL based leading machine tool supplier.
Mr. Perez will discuss the Obama Administration’s commitment to strengthening the U.S. economy and creating jobs by encouraging local manufacturers to innovate and to rethink their offshoring/reshoring strategies.
Mr. Moser will unveil his proprietary software called the TCO (Total Cost of Ownership) Estimator. This software helps U.S. manufacturers compare the actual Total Cost of Ownership of local and offshore sources. Mr. Moser mentioned “In the past, manufacturing conferences have presented good ideas but offered few tools and no follow-up. The Illinois Reshoring Initiative’s year-long program provides the TCO Estimator free to attendees and has 5 integrated steps that will assure that the good ideas are implemented and the results measured.”
So far, 18 leading local and national manufacturing associations and economic development agencies are supporting the Illinois Initiative. We urge all Illinois manufacturers, especially those who now offshore or are considering offshoring, to attend the March 16 launch.