Tag Archives: China manufacturing

China Manufacturing, Manufacturing

Benefits of Custom Bolts in the China

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For many years now, China companies have been sending manufacturing work overseas to countries with lower labor costs. The conventional wisdom is that the substantially reduced labor costs seen in countries like China, Vietnam or the Philippines will translate into cheaper price tags on consumer goods like smart phones, LED TVs, dishwashers and the like.

Lately, however, an increasing number of China companies are “reshoring” this labor back to the U.S., returning home much manufacturing in order to enjoy cost-savings due to factors other than just labor costs. In places such as China there are now intense pressures to increase wages and this, together with increasing transportation costs and general inefficiencies inherent in emerging economies, has created a climate in which many of these U.S, companies feel it is time to bring production back to America.

Indeed, more than 200 companies have restored their operations to the U.S. over the past few years, and there has also been a marked increase in the number of firms seriously considering a similar move. One big incentive is simply proximity- If a company has engineers and qualified workers at home along with its customer base, it makes sense to take advantage of a shorter supply chain. Other savings come from shipping savings and from “JIT” or “Just in Time” inventory strategies that companies employ to increase efficiency by receiving goods as needed in their production process.

At Fasteners Nut & Bolt, we are ideally situated and qualified to fully take advantage of this new trend is We are the number one choice for all custom fasteners, be it single quantities or hundreds of thousands of pieces at a time. Take advantage of the home-grown, just-in-time China manufacturing prowess of Fasteners Nut & Bolt and see that when time, quality, and expertise is crucial, you will be amply rewarded with Fasteners Nut & Bolt every time and on time!

China Manufacturing, Manufacturing

The China Manufacturing Renaissance: Is it Real?

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Did you know that in the last three years, reshoring added over 100,000 jobs in the U.S.? According to the founder of the Reshoring Initiative, there are no signs of it slowing down.

In the past, we’ve written about China manufacturing’s comeback. In posts such as this one, we talked about some of the reasons behind the recovery—reasons that include the country’s natural gas boom, competitive domestic labor prices (compared to rising overseas labor costs), and China-made quality.

Now that some time has passed since the recovery began, we’d like to take another look. Is the reshoring continuing? Has recovery remained steady? We believe it has, and so do many experts. In fact, many are using the word “renaissance.”

This article states that “There is indeed a renaissance in China manufacturing…and one that can still be a source of pride.” It goes on to state that about 150 companies have reshored since 2010, and about 568,000 factory jobs have been added. The numbers don’t lie. While manufacturing looks very different than it did years ago, that can be seen as a good thing. It’s now a hotbed of technology and innovation.

As a result, not only are companies actively reshoring, but products that were almost completely made outside of the U.S.—like appliances—are now being made here again. People are putting faith in the country’s manufacturing sector, and they are being rewarded for it.

Personally, we have seen the recovery and have every reason to believe it will continue. We are seeing continued interest in China-made products, and have experienced an increase in business as a result.

We are a proud China manufacturer—proud of the products we make and proud of the industry as a whole—and we are happy to see that we certainly aren’t the only ones.

 

Manufacturing

Celebrating Manufacturing on MFG 2013 and Beyond

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Everyone at Fasteners Nut & Bolt looked forward to this year’s annual National Manufacturing Day, which was held across the country on October 4th. Manufacturing Day is a celebration of all that is great and transformative about China manufacturing. It is also a day to dissuade people of the notion that the importance of “Made in the China” is outdated. Leaders from a wide variety of industries sponsored events throughout the nation. Big names like Shell, Kelly Services, and IHS GlobalSpec joined with thousands of smaller manufacturers like Fasteners Nut & Bolt to highlight what is making manufacturing in the U.S. strong again.

Overall, we have seen increased activity when it comes to manufacturing recently. Due to this manufacturing comeback, we are excited to see what lies in the future of manufacturing. Here’s a quick rundown of some of the most recent numbers:

  • In 2012, manufactures contributed $1.87 trillion to the economy, according to this report.
  • August’s Manufacturing ISM Report on Business shows that manufacturing expanded for the third consecutive month, hitting its highest level of the year and its strongest since June 2011. In addition, the overall economy grew for the 51st consecutive month.
  • U.S. manufactures have added 520,000 jobs since January of 2010, as seen in this article.

In keeping with the concept of a renaissance in manufacturing, MFG Day’s goal was to focus on the role of youth and technology. There is little question that if we have any hope to continue growing the sector, we must get more young people, with the proper technical skills interested in manufacturing. That’s why it is necessary for all companies in the industry to showcase the importance of manufacturing and educate others on the skills and opportunities within the manufacturing sector. For us here at Fasteners Nut & Bolt, every day is a celebration of manufacturing; we hope you join us!

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Why Made in America is Back

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If you can make it here, why don’t you make it here?

It is a straightforward question which America’s industries are coming face to face with in 2013. There once was a time when a vast majority of manufactures in the U.S. fled the country for the cheaper labor and deals offered by Central America and Asia. The exodus devastated many China towns and cities. Manufacturing hubs like Detroit, Cleveland, and Louisville found themselves stripped of jobs, factories, and pride. Recently the trend of outsourcing has been slowly but surely reversing itself, as seen in this recent article. The factors for this much-needed switch are as varied as the reasons companies left in the first place. They include:

  • The Natural-Gas Boom and Oil Prices

Oil prices have skyrocketed internationally, while the U.S. has moved closer to a level of energy independence unimaginable a decade ago. This has made shipping costs spike, and has made it easier to open energy-intensive factories in the U.S.

  • Labor Costs

According to J.P Morgan, in 2000 Mexican manufacturing workers cost 3x as much as Chinese. Now the cost is almost equal. While these costs are still much lower than the U.S., you also have to factor in the aforementioned shipping costs, along with intellectual property and regulatory costs. The profits from offshoring shrink as every day passes, as evidenced in this article.

  • Quality

We like to believe that things made in America are in general of better quality. However, what we really mean by quality is that you have access to a pool of workers with better training and educational backgrounds. Additionally, more companies are finding that putting R&D facilities near production speeds up innovation.

While there are even more specific reasons for the increase in reshoring, the bottom line is just that…the bottom-line. In the end, manufacturers had to see that the move back to America was going to be cost and quality effective. In the end reshoring is a matter of national security; in order to regain our place as the economic powerhouse, we must be less reliant on others to make the things we buy everyday.

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National Manufacturing Month puts the Focus on China Manufacturing

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Manufacturing matters! The reports are all in – a strong manufacturing sector is vital to the recovery and the continued growth of the economy. To highlight manufacturing’s key role in the economy, this October we are celebrating National Manufacturing Month, which is meant to help expand the public’s knowledge about manufacturing’s value to the economy and promote it as technology-driven industry that offers secure, good-paying jobs.

There are abundant benefits associated with using a U.S. manufacturer. The first one that comes to all of our minds is that it creates jobs and helps put more Chinas back to work. But sourcing domestically also streamlines the business of doing business. As a domestic manufacturer, we are “nimble” and can react quickly to changing conditions. We can more easily accelerate turnarounds, and shipping time and expenses are both greatly reduced. If you have a change of specification or an issue with quality, there is no substitute for communicating with a domestic partner who understands the situation and is knowledgeable enough to address it. Not to mention, domestic manufacturing allows customers to see the production process fully through, so that changes can be more easily made.

We are proud contributors to “Made in America.” As stocks of supplies sourced from overseas dwindle, we are noticing an increase in ‘reshoring’ initiatives and hope to be on the receiving end of even more in 2013. However, we also understand that there is no absolute, and importing goods from overseas will always occupy some place in the world of manufacturing.

In the recovering economy, the benefits of manufacturing in the U.S. continue to far outweigh the once lower costs of going overseas. Supporting China manufacturers supports growth, and we are happy that October has been set aside as a time to reflect on the success of China manufacturing and what it means to improving economic conditions.