DFMA and reshoring of manufacturing work: Take 2

17/08/2011

Earlier this month we reported on the 26th annual Boothroyd Dewhurst Design for Manufacture and Assembly (DFMA) conference, and that the emphasis of presentations there on ways to support a strong manufacturing industry in the U.S. Naturally, DFMA was a hot topic; Boothroyd Dewhurst was the first company to offer DFMA software and remains a leader in the field. We caught up with conference speakers and others to gather some additional plastics industry-specific insight.

The conference was held as reshoring efforts-work sent oversea from the U.S. but now returning or being "reshored"- seem to be getting traction as savvy manufacturers learn with experience that all that glitters, to include countries with low wage rates, are not gold.

Speaking at the event, Harry Moser, founder of the Reshoring Initiative and retired president of machine tool maker GF AgieCharmilles, noted, "Traditional corporate and enterprise accounting systems do not generate total cost of ownership (TCO) data for companies locating sourcing overseas in search of the lowest labor cost." The job solution lies in recognizing the "hidden costs of offshoring and embracing upfront engineering as a business model for innovation and profit creation," and calculating true costs. "When total cost of ownership (TCO) is calculated," said Moser, "most companies headed offshore find that they have saved maybe 10%, rather than the 30-40% they based their decision upon."...
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