on Wednesday, May 9, 2012 at 12:14pm ·
Jobs can indeed come home to America and I’ve proved it. We’ve done so not only with competitive pricing, exceptional American quality and on-time delivery, but by the elimination of waste, cutting unnecessary spending, and proving to our customers that an average of 30% of all manufactured products (in my industry) outsourced to overseas companies are returned as scrap, and due to production requirements and time restraints, must be reproduced here at home. That cost however, is never taken into consideration and subtracted from the so-called savings from doing business overseas. Another 15% must be reworked, just to meet fit, form and function standards, again, never subtracted from the so-called savings. Then, once the cost of customs duty fees, tariffs (if applicable), long shoreman fees, dock fees, storage fees, insurance, freight from let’s say, Ningbo China to San Francisco, and from S.F. to its final destination, our company has come within 3% of the Chinese, matched the Mexicans dollar for dollar, beat the Canadians by 10%, the Taiwanese by 41%, and the Europeans by as much as 70% and our customers said; bring the jobs home! To help illustrate what we’ve been able to accomplish, I’ve gone back approximately 1 year, April through May of 2011, to reflect $8 million dollars in savings to customers and the return of parts that had been outsourced to foreign countries back to American companies where they belong, thus, as a private sector entity, helping to create and or save many American jobs. Just prior to April, I shared a success story whereby we saved our American customers $4.150 million by returning parts they were having manufactured in Taiwan, India, France and Mexico, and placing them with our part specific supply chain right here in the U.S., specifically, Iowa.
What I do for a living isn’t the answer by a long shot, but sitting on our hands isn’t either. The jobs can come home, question is; will we elect people all across this country, from the top to the bottom, that have the life skills and business acumen required for standing up to the Chinese, cutting spending and taxes, and eliminating the waste and the counter productive regulations that will ultimately ‘inspire’ consumer confidence and ‘empower’ employers to begin hiring again? That question is yet to be answered, and it’s you that must answer it.
The savings I’ve been able to achieve for my customers is significant, the savings to America however, is priceless!
On May 23rd,
Landed a major contract from a new Wisconsin customer that outsources all its components to manufacturers abroad, and then has them shipped to their location for final assembly. Now, every single component will be manufactured by American craftsman right here in eastern Iowa.
Current cost: $142, 835.00
Our cost: $121, 412.00
Total savings to customer x 36 units p/yr; $771,228.00 or 15%
On May 5th,
Received a Purchase Order Agreement today from a Chicago based customer for “Chute Slide Brackets” used on packaging equipment. This particular item ‘was’ being manufactured in Mexico and will now be manufactured in Dubuque, IA.
Mexico $3.88 ea.
U.S.A. $1.65 ea.
Savings to customer x 10,000 pieces p/yr. $22,300.00 or 58%
On April 27th,
Received another Purchase Order from our Wisconsin based customer for more precision machined weldments. This particular grouping covers an entirely new machine heading for the industrial film market. Based upon a previous projects pricing, neither Canada nor Mexico were even considered.
Project value: $114,000 x 7 units p/yr:
That’s $798,000 staying in America where it belongs.
On April 26th,
Received a Purchase Agreement from an eastern Iowa customer for large bronze bushings which he normally imports from S. Korea. Not anymore, this item will now manufactured by American craftsman in Minnesota.
S. Korea: $27.24 ea
Savings to customer x 500 p/yr.: only $5,610.00 or 42%.
On April 25th,
Final negotiations with our Seattle customer for the return of diesel locomotive parts from India and S. Korea was successful. All prices, were accepted. Now more than 5,000 piston cooling assemblies will be manufactured annually by American workers in Wisconsin and Iowa.
Combined India/S. Korea: $55.65 p/ass’y
Savings to cust. x 5000 pcs. annually: $72,150.00 or 26%.
On April 20th,
Received contracts to provide 28 more precision machined steel components used, once again, in the paper and transparent film industry, which were formerly produced in Canada and Mexico. All components will now be provided by eastern Iowa manufacturers.
Canada and Mexico: $127, 442.87
USA: $114, 879. 30
Savings to Customer x 80 Units p/yr.: $1,005,085.60 or 10%.
On April 19th,
Received contracts to manufacture structural steel components formerly manufactured in Canada and Mexico and used in the paper and transparent film industry.
Canada and Mexico: $162,418.37
U.S.A: $138, 012.91
Savings to Customer x 80 units p/yr.: $1,952,436.80 or 15%.
On April 18th,
Received an order today to manufacture gear segments for a customer in Fresno California. These machined gear segments used to be manufactured in Juarez Mexico. Now they’re being manufactured by American craftsman in Dubuque Iowa.
Mexican Cost: $312.30 U.S.A. Cost: $217. 87
Savings to Customer x 300 units: $28,329.00 or 31%.
Steven R Rathje Founder/CEO
International Procurement Services, Inc.