North American Manufacturing CEO Predicts 3 Big Changes As Reshoring Gains Momentum

Welcome to Thomas Insights — every day, we publish the latest news and analysis to keep our readers up to date on what’s happening in industry. Sign up here to get the day’s top stories delivered straight to your inbox.

Mechanical engineers develop sustainable agricultural robotics.

On a recent episode of the Thomas Industry Update Podcast, Thomas CEO and President Tony Uphoff sat down with Barry Zekelman, CEO and executive chairman of Zekelman Industries, one of North America’s largest independent steel pipe and tube manufacturers. However, the steel company didn’t always hold that title. Barry Zekelman took over his father’s steel company at just 19 years old, and has since grown it into the giant it’s become. As such, Zekelman has seen a lot of trends come and go across industry in North America, but one he’s stuck by for years has been reshoring.

In light of the pandemic, reshoring is being talked about now more than ever, and Zekelman gave us some exciting predictions that could change domestic manufacturing as we know it.

1. Fresh Opportunities for Unemployed Americans

When prompted as to why Zekelman has stayed passionate about North American manufacturing throughout the years, his first response was that he’s “seen what manufacturing can do to a community.”

“Manufacturing jobs provide a lot to a community, and the spinoff jobs provided by them are extremely important,” Zekelman explained. “There’s a technical aspect; making things that require parts, and then there’s the transportation of those parts. These skill sets earn a higher wage and a higher quality of living.”

Zekelman went on to say that these opportunities could further provide a level of purpose and opportunity in communities that suffer from income tension and high crime rates, and could provide security for unemployed populations.

“The cost of not having this available here is astronomical; we pay for it in more ways than we can ever imagine,” Zekelman said. When we buy a cheap product from China or Taiwan, do we really know the cost of it? That cost of it is much higher than we think.”

To fix this issue, Zekelman insists we need to make sure the next generation knows what opportunities are available to them, especially those beyond a college education.

“We have to show those options are available and what’s involved with that,” Zekelman explained. “The factories of today are ridiculously sophisticated. “What you have to do to maintain them and to run them is really high-tech and interesting and fun and cool.”

2. Changing Perceptions Around Trade Schools

As part of Zekelman’s plan to make the generation aware of the opportunities within the manufacturing sector, he emphasizes the importance of changing the perception surrounding trade schools as a successful career path. Specifically, he recounts going to Rouche Automotive’s assembly plant in Michigan, where he worked with a very passionate young professional who was assembling the engine for his car.

“This guy was a pro, and the tools and systems involved in putting this engine together were incredible,” Zekelman said. “He was meticulous about it. He loved his craft. The sophistication in the product was remarkable. The working environment was great. And I’m sure he earns a really nice living and can move into other things. And, this is the case in factory after factory, and operation after operation all throughout our country.”

He went on to explain that he knows his employees at Zekelman Industries are compensated with the ability to successfully save for retirement, go on vacation, and put their kids through their education system of choice.

“There’s a lot of availability in a lot of different areas that people can go into and you’re not always getting your fingernails dirty, but sometimes you will be, and there’s absolutely nothing wrong with that.”

3. Further Adoption of Industry 4.0 Technologies

With the influx of domestic manufacturing Zekelman also predicts a drive to further adopt industry 4.0 technologies as key industry players look to fill gaps in the workforce more young professionals enter the sector. He discusses this in terms of how complex modern manufacturing has become.

“Manufacturing of yesteryear was ‘make a bunch of it, put it out there and then, let people sell it today,'” he explained. “Today, you can’t have the stops and starts of that environment. They all have to be uniquely linked and flow perfectly to make money, supply the customer, and get the end product to them instantaneously, which is what they want. So, there’s a whole symphony that has to happen there, which requires technology skillset software menu factoring and automation equipment that’s capable of communicating to that and supplying that in that timeframe which is really a whole different ball game. We need to now educate our young folks.”

As for adding automation to his own factory floor, Zekelman stands by technology as not only the key to innovation but a necessity for keeping his employees safe and efficient.

“To foster innovation in this industry, you need to lead by example and show the benefits of it,” Zekelman said. “Whether it’s safety, environmental productivity, product quality, or a new product, all of those things are part of the equation. And when I show someone we put in this automated machine so no one has the potential to get their finger crushed ever again, those benefits are real and people can’t deny that, and they say we’ve got to do more of this.”

To listen to Tony Uphoff’s full conversation with Barry Zekelman, stream this episode of the Thomas Industry Update Podcast, available on the following platforms: