February 20, 2013
According to a recent article by Manufacturing.net, Automation GT is “at the forefront of the re-shoring trend that has been sweeping the American manufacturing landscape”. President & CEO of Automation GT, Simon Grant, shares his comments with editor Joel Hans on how automation is bringing production lines back to the United States and what it means for the economy and jobs in the U.S. Read the full story here.
Automation GT, an automation design-and-manufacturing firm based out of Escondido, Calif., is at the forefront of the “re-shoring” trend that has been sweeping the American manufacturing landscape. The company, which has deployed automation solutions in a handful of industries — aerospace, automotive, pharmaceutical and medical devices, to name a few — has seen some of its largest clients put serious thought into the business case of bringing work back to America.
Simon Grant, Automation GT’s CEO and President, says the re-shoring issue has become more prevalent in during early and mid-2012. Even though most of the industry has been aware of the trend, Grant says only recently has there been a “re-awakening” of the capital budgets among his company’s Fortune 100 customers. And while a post-Great Recession economy might give major corporations more flexibility in which to consider the prospect of bringing jobs back to America, it’s not the only reason to pursue the business case
There are the typical reasons that a manufacturer considers re-shoring, which Grant says circle around “labor cost and conditions, compliance, intellectual property and time to market.” With labor costs in China rapidly rising, more companies are starting to realize that the total cost of ownership of a given product is not quite as compelling for the off-shore side. The total cost of ownership equation now includes time in freight, which can swing wildly due to delays and weather conditions. Add in unfavorable tax-and-duty situations, and the price outlook ge1ts even worse.
Grant says that many manufacturers have left themselves open to being affected by impossible-to-predict weather conditions, such as the recent Hurricane Sandy, which struck the East Coast with devastating effect in October 2012. The longer the supply chain from point of manufacturing to point of sale, the risk increases dramatically. He says, “One customer recently missed a key market opportunity due to their product sitting on a container ship waiting for east coast ports to re-open.”