Sometimes the best job creators are other jobs. That’s one lesson learned from reporter Mark Williams’ article in last week’s Columbus Dispatch, which takes a comprehensive look at the real and potential impact made by U.S. manufacturers choosing to bring outsourced jobs back to American shores.
Economic consultant Harold Sirkin tells Williams that the 600,000 to 800,000 manufacturing jobs projected to come back to the U.S. from countries like China and Mexico ultimately could lead to 2-3 million total jobs, when considering the industries that support or benefit from strong domestic production.
Automakers like Ford Motor Company will make the largest economic impact with moves like the recent $128 million investment in its Avon Lake plant that will retain 1,400 jobs. But even manufacturers like Suarez Corp. Industries can effect exponential job increases. The company’s decision to move production of EdenPure space heaters from China to North Canton benefits more than the 250 employees hired to work in the facility, as EdenPure creator Julius Toth tells Williams:
The company’s expansion into other products also has added jobs at other companies that are supplying heater parts. Toth estimates that ‘roughly 1,000 U.S. citizens are paying their bills’ now because of the decision to move production back to the U.S. and add jobs.
Williams notes that increased labor and shipping costs, and a desire for greater control over production spurred the trend toward domestic manufacturing even before President Obama made his plea to bring jobs back to America during the State of the Union address. However, the President’s words did bring attention to the issue by challenging business leaders to think about ways they can hire domestically while calling on federal and state lawmakers to enact legislation that motivate businesses to do so.
But even as these initiatives move forward, Ohio economist Daniel Meges tells WIlliams that job creation will come in many smaller forms versus the large scale operations of bygone days:
‘I doubt that Mansfield will ever get a Westinghouse-appliance-type operation back, or that GM will reopen their Dayton plant,’ [Meges] said. ‘The trick will be for smaller, more-nimble manufacturers based in Ohio to work their way into the supply chains of those manufacturing expansions…’
We talked about what President’s Obama’s State of the Union message could mean for job opportunities for people with disabilities at the time of the address; and yesterday we mentioned a new bill proposed by Georgia Governor Nathan Deal that will provide tax incentives to manufacturing facilities in the state that could enable the state to emulate the success of its neighbors in providing jobs for these people. In the coming days and weeks, we’ll post stories about companies like American Training, Inc. that are providing contract labor services that fit this new manufacturing paradigm.
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Image from Cushing Memorial Library and Archives, Texas A&M, used under its Creative Commons license.