Are we paying more by chasing lower production costs abroad?

Hey, it’s Nicole Di Rocco, and welcome back to another insightful episode of the FastTrack Your Fashion Brand Podcast! Today, we're unraveling the threads of overseas manufacturing with our esteemed guest, Harry Moser. Are we paying more by chasing lower production costs abroad? Let’s stitch together the true costs and benefits of domestic over overseas manufacturing!

Key Steps To Stick To:

1. Understanding the Decline of Domestic Manufacturing:

   • In this episode, I delved into how US manufacturing jobs, particularly in apparel and textiles, had seen a significant decline over the past decades as production had gravitated towards overseas solutions, notably in China.

2. Exploring the Reshoring Initiative's Mission:

   • In the episode, I unveiled the mission behind the non-profit Reshoring Initiative, which aimed to revitalize US manufacturing by helping companies accurately assess costs and recognize the profitability of domestic production through innovative tools like total cost calculators.

3. Identifying Factors Beyond Labor Costs Supporting Reshoring:

   • Together, we explored the multitude of benefits of Reshoring manufacturing. From avoiding supply chain disruptions and reducing inventory costs to leveraging environmental benefits, skilled workforce, and catering to the consumer preference for Made in USA products, the advantages were compelling.

4. Investing in Automation and Workforce Training:

   • We discussed the critical role of investing in automation and enhancing workforce skills in programming advanced machinery, which enabled US factories to compete effectively against the lower overseas labor costs.

5. Advocating for Necessary Government Policy Changes:

   • The episode highlighted the need for comprehensive reforms around trade policy, corporate taxes, immigration for skilled workers, and vocational training to further support the Reshoring of manufacturing to the US.

6. Outlining Steps for Brands to Reshape Sourcing:

   • I shared insights on the actionable steps and resources that were available for brands looking to plan and implement reshoring of manufacturing over the next 5-10 years. It was all about utilizing resources like the Reshoring Initiative's cost calculators and initiating a shift in mindsets and business practices.

Action Items:

• Utilize the Reshoring Tool: Research and utilize the Reshoring Initiative's Total Cost of Ownership estimator tool to accurately assess domestic vs overseas production costs for your products.

• Connect Locally: Reach out to local economic development organizations to uncover resources and opportunities for bringing manufacturing and jobs back to your city and state.
• Stay Informed: Monitor proposed legislation like the latest Competitiveness Act that provides funding for Reshoring Initiatives and manufacturing workforce training programs.
• Evaluate and Adapt: Evaluate potential components of your products that could be reshored in the short-term and discuss with your factory ways to invest in automation technologies to improve productivity and lower costs. 

• Highlight Made in USA: Add more visibility to any components already made in the USA, such as with a 'Made in USA' label, to tap into consumer preferences.

Closing Thoughts: 

This episode has been an eye-opener! It’s time we look beyond the price tag and truly understand the value and potential of bringing manufacturing back home. Let’s envision and work towards a future where ‘Made in USA’ transcends being just a label – it becomes a hallmark of quality, sustainability, and a testament to our community’s spirit!

Links and Resources:

• Check out Reshoring Initiative's website: reshorenow.org
• Join Reshoring Initiative Facebook Community: https://www.facebook.com/ReshoreNow/

Connect with Nicole Di Rocco:

• Instagram: @Nicole_Di_Rocco 
• Website: www.fashionbizmentor.com

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