The bare roots of the DMSC begin with an intense understanding of the issues that face domestic manufacturers. We have found that many manufacturers are experiencing similar issues when dealing with out-sourcing. One such issue is the inability to communicate effectively, which directly effects the ability to control quality. The cost of shipping containers has also become a point of contention with shipping which has increasing dramatically.
Many American manufacturers have been quoted an attractive bottom line to off-shore and “jumped” with often mis-managed and mis-guided information many times by accountants motivation to look better on the books even if it is for the short term causing companies to at times be pushed into off-shoring. Original quoting cost seem effective until hidden cost such as the need to travel overseas to manage quality control or to finalize assembly, start to add up exceeding the original cost. Rising fuel prices, increases in Chinese wages and other issues according to Archstone Consulting has “90% of manufacturers considering a change or have changed their manufacturing supply strategy”.
Many companies have found it easier to “jump” instead of doing everything possible to evaluate, reduce waist and optimize their own systems. Secondly, According to the Archstone study “the projected costs of off-shoring increased dramatically due to ocean freight costs which have increased 135%, the Chinese Yuan which has gained 18% in value compared to the dollar and Chinese manufacturing wages have increased by 44%. Also, quality and safety concerns where some of the greatest risks faced in overseas products.
The DMSC agrees with Micheal Collins thought that “the trend toward bringing back production from foreign countries will continue as U.S. manufacturers take a holistic look at all the cost and problems associated with out-sourcing”. The DMSC is aware that off-shoring will always be part of our “world economy” but we want to provide our domestic suppliers and manufacturers an opportunity to compete because ‘we believe it’s the right thing to do.
