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The Insourcing Boom
The Atlantic ^ | Dec 2012 | Charles Fishman

Posted on 12/02/2012 6:55:58 AM PST by grey_whiskers

One key difference between the U.S. economy today and that of 15 or 20 years ago is the labor environment—not just wages in factories, but the degree of flexibility displayed by unions and workers. Many observers would say these changes reflect a loss of power and leverage by workers, and they would be right. But management, more keenly aware of offshoring’s perils, is also trying to create a different (and better) factory environment. Hourly employees increasingly participate in workplace decision making in ways that are more like what you find in white-collar technology companies.

In late 2008, Dirk Bowman and Rich Calvaruso, both manufacturing managers at Appliance Park, were looking to shake up the place, desperate to keep it relevant. Bowman oversees all manufacturing at Appliance Park. He started there 29 years ago, fresh out of college, as the second-shift foreman on the dishwasher line. Calvaruso has worked for years in manufacturing at GE, and now helps other people at Appliance Park invent and then reinvent their work on the assembly lines.

“The dishwasher line was extremely long,” Bowman says. “It went from the back of the factory to the front, and back again. It was very loud. It was very expensive—each operator was surrounded by parts, a lot of inventory. It was a command-and-control operation.” It was the kind of operation Chinese companies could readily out-compete, and the kind U.S. factory managers were happy to outsource.

(Excerpt) Read more at theatlantic.com ...


TOPICS: Business/Economy; Conspiracy; Society
KEYWORDS: economy; ge; insourcing; theatlantic
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To: TwelveOfTwenty
I apologize, I'm not spoiling for a fight.

My only point was that the companies moved the production offshore *first* (lower wages), without consulting the customers about whether the customers would prefer price or quality.

So once I was convinced of that, the question became, "OK, why would they suddenly rock the boat when everything was going well?"

And the answer I came up with was, they wanted new markets since the West was a mature market.

I agree offshoring sucks: I was most emphatically NOT trying to defend it -- as you might guess by reading the article which started this thread.

Cheers!

21 posted on 12/02/2012 7:54:35 PM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: grey_whiskers

Under “Preparedness on the Go”, you might want to consider having a CD or other copy of the family photo album with a family member who is in a different location. FYI, the small bank safety deposit drawers are too narrow for a CD.


22 posted on 12/02/2012 8:03:54 PM PST by bgill (We've passed the point of no return. Welcome to Al Amerika.)
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To: grey_whiskers

Outsourcing has its place. But the whole-sale gutting was silly..


23 posted on 12/03/2012 2:11:57 AM PST by Cronos (**Marriage is about commitment, cohabitation is about convenience.**)
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To: Soul of the South
One of the first companies I worked for was an operation built from bootstraps to the fifth largest of its kind in the world.

The owner fell prey to a financial/business consultant who had made a name buying up small electronics manufacturers on the brink which had inventory, slashing costs by dumping all the line personnel (cutting costs) while maintaining quality selling the old inventory.

After showing a quarter of major turnaround (on paper), the companies were sold at a profit, but were doomed to failure because the product had suffered from the elimination of the experienced hands.

Anyway, that guy got the owner's ear, and things went downhill from there--the company broken up and sold in just 3-4 years.

The consultant made his and moved on, the guy who had built the business lost out.

There were lots of other factors involved, but most of the real business-wrecking decisions which looked good on paper originated with the business consultant.

24 posted on 12/03/2012 2:53:24 AM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: grey_whiskers
I apologize, I'm not spoiling for a fight.

None inferred or intended. We agree on this. I'm just looking at it from the angle of what we're doing to enable it, and what we can do to stop it.

It should be clear we can't count on either party to stop this. Maybe they shouldn't, as opening up other markets to our goods is a good thing. But if we want to keep our jobs, then we're the ones who need to buy stuff made here.

25 posted on 12/03/2012 5:09:02 PM PST by TwelveOfTwenty (Ho, ho, hey, hey, I'm BUYcotting Chick-Fil-A)
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To: grey_whiskers

Thanks for the ping. I don’t think it’s smart if your R & D is thousands of miles away from where the products are made except for the more simple items. I think we should do like the Germans concentrating on specialty manufacturing.


26 posted on 12/03/2012 10:40:56 PM PST by neverdem ( Xin loi min oi)
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