WILKES-BARRE — Harry Moser recalled his upbringing in Elizabeth, New Jersey.
Among the sights when he was a child was the Singer Sewing Machine company’s factory. That building has since vanished, part of a trend that Moser looks to combat nationwide and in Pennsylvania to bring back jobs.
“Everything is made outside of the United States,” Moser said.
Moser, founder and president of Reshoring Initiative, spoke to a group of 30 businessmen and women from Central and Northeastern Pennsylvania Wednesday to educate them on “reshoring” — defined as bringing manufacturing jobs back to U.S. soil.
Moser participated in President Barack Obama’s 2012 Insourcing Forum and testified at a Congressional hearing on manufacturing.
Moser’s organization provides tools and resources to businesses to see the plausibility of “reshoring” manufacturing operations, or bringing them back to the United States. The Northeastern Pennsylvania Industrial Resource Center (NEPIRC) is also spearheading a statewide initiative to bring those jobs back.
Maureen Mulcahy, continuous improvement specialist for NEPIRC, said that there are 578 manufacturers in Luzerne and Lackawanna counties, with approximately 24,560 employees.
“Reshoring provides a huge opportunity for the state and region,” Moser said.
Moser defined “reshoring” as bringing manufacturing jobs for goods sold or assembled in the country back to the United States.
Moser explained that larger companies participated in a “herd” mentality — when one company decided to move operations overseas to China, many others followed. He added that those same companies ignore 20 percent or more of the total cost of products produced overseas.
“The larger manufacturers and big box retailers we’ve spoken to understand that manufacturing costs have shifted, and that many of the cost factors that led to the offshoring of production and importing of consumer products have reversed, making domestic production and near-sourcing more practical,” said Eric Joseph Esoda, CEO of NEPIRC.
For businesses, reshoring could mean a number of benefits, which could include:
• Higher product quality and consistency;
• Fewer supply disruptions;
• Lower tax incentives;
• Better responsiveness to changing customer demands.
Moser and Mulcahy also agreed that reshoring meant one certainty for citizens — jobs.
According to data provided by Reshoring Initiative, 279 jobs were reshored to Pennsylvania from 11 companies from 2007 to August 31, 2014.
“You’re not at the bottom, but way from the top,” Moser said of the state’s rankings.
Mulcahy said it’s too early too tell just how many jobs have been reshored in Northeastern Pennsylvania, and stressed that the initiative is just beginning. She said, however, that more manufacturing jobs in the region could mean more production, which could mean more high-end jobs.
Jamie Hummer, vice president of operations for JML Industries, Inc., Hazleton, said his company is already assisting another company in the reshoring process.
He echoed Moser and Mulcahy’s statements that it would result in job creation.
“It’s something the state needs,” he said.
Reach Travis Kellar at 570-991-6389.
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