‘Reshoring’ companies are coming to Tulsa – Tulsa World

For decades, there has been a trend among many U.S. manufacturers to move at least part of their operations offshore.

In the 1970s, Japan and Korea absorbed a lot of the jobs once held by Americans. When wages increased with demand there, China became the next big destination for companies seeking cheap labor.

But recently, there has been a new movement – “reshoring” – where domestic companies are bringing the manufacturing of at least some products back to the United States.

It’s hardly a tidal wave, yet even a ripple at this point is significant, observers say.

“Many companies are shifting their operations back to the U.S. because offshoring has hindered their ability to rapidly deliver goods, maintain low inventories, uphold competitive costs and meet demand for rapid adjustments in unique products,” says Harry Moser on his website for The Reshoring Initiative, an advocacy group.

Offshoring may seem to be an easy way to plump up profits, but it actually is bad for the U.S., Moser contends. At a time when good-paying, skilled jobs are needed more than ever, shipping work overseas hurts the domestic economy and contributes to waste and instability, he says.

Big-name companies that have moved an operation overseas and then back to the U.S. include Caterpiller, Coleman and General Electric, according to a recent Inc. magazine report.

The reshoring trend is starting to be seen in the Tulsa area, says Jim Fram, senior vice president of economic development for the Tulsa Metro Chamber.

“We’ve noticed some existing local businesses moving certain product lines back here,” Fram said. “They mainly are items that require advanced manufacturing.

“What companies have learned is that lower wages lead to lower quality, while a higher rate of compensation is connected with a higher skill level and better products.”

Staying here also helps protect unique technologies. Some countries – particularly China – have developed a reputation for having a rather lax attitude toward patent rights and intellectual property.

For those who look beyond the dollars-and-cents aspect, there also are concerns about foreign workers being exploited, not only with low wages, but also harsh work and safety environments.

Moser argues that, even looking only at the bottom line, businesses consistently miscalculate the true costs of doing business oversees. Indeed, a study by Accenture involving almost 300 manufacturing executives found a significant underestimation of offshore costs, Inc. reported recently.

All of which means you may begin seeing “Made in Tulsa” stamped on a growing number of products.