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“Every dollar counts now! We have it within our grasp to bring these jobs to the U.S.,” Bollman implored in an 8:19 p.m. email blast.
Indeed, Bollman did have it. Ultimately, 671 supporters pledged $102,820 in the crowdfunding initiative launched by America’s oldest hat maker on Nov. 19, American Made Matters Day.
A reshoring effort will bring 41 manufacturing jobs to Lancaster County as Bollman Hat Co. plans to move manufacturing of the Kangol product line from China to its Adamstown plant.
The company has pledged to invest at least $387,000 in the effort over the next three years. That will retain the 176 current positions at the plant and add 41 more.
The company will be using those funds and more kicked in by the state government to purchase equipment and bring the outsourced jobs back to the Adamstown plant.
The state’s Department of Economic and Community Development put together a financing plan that includes $82,000 in job creation tax credits and a $60,000 grant from the Pennsylvania First Program, which helps fund “increased investment and job creation” in Pennsylvania, according to the DCED website.
It was the fall of 2013. I was attending the Global Plastics Summit in Chicago, a yearly event cosponsored by the Society of the Plastics Industry and IHS, an international “thought leader” in the area of plastics, chemicals and other industries.
The topic was shale gas, more specifically the opportunity that abundant, inexpensive feedstock materials would present to plastics processors in the U.S. Greg Jozwiak, North America commercial v.p. for Dow Packaging and Specialty Plastics, was one of the speakers that day. Looking into his crystal ball, and referring to PE packaging in particular, he said, “Core growth (due to shale gas) could boost growth by 2.5%, reshoring 1%, substitution (of non-plastics packaging) by 0.75% and export of finished goods another 0.25%,” he explained. “That’s 4.5% of growth, representing 770,000 metric tons/yr.” Perhaps even more intriguing to me, Jozwiak added that Dow customers outside of the U.S. are looking at establishing a manufacturing footprint in America to tap into this potential.
My first thought was “Wow.” Then I wondered, “Maybe a bit optimistic?” Then, as the next speaker was being introduced, I concluded my thought process with “I guess we’ll find out.”
In late April, I found out.
I was part of a tour of worldwide journalists invited by CORE PA Global to visit a group of companies in Pennsylvania. The organization is the centerpiece of a state government initiative to increase the visibility of a 53-county footprint to international and domestic investors and reshoring prospects.
SEKISUI Polymer Innovations, LLC announced today their purchase of a third manufacturing facility. The new site is a 375,000 square foot facility on 56 acres in Bloomsburg, Pennsylvania, located two miles from company headquarters. The thermoplastic sheet manufacturer’s other facility is the former ALLEN Extruders, LLC located in Holland, Michigan.
“This expansion is part of our commitment to further invest in the KYDEX® and ALLEN® thermoplastic products portfolio. It is one of the reasons we merged the two businesses to become SEKISUI SPI in 2014,” COO and President Ronn Cort explains, “This is the next step of SEKISUI Chemical Company’s multi-year, multi-million dollar investment strategy into the North American plastics business.”
Cort continues, “As an $11 billion global company, SEKISUI has choices of locations and industries in which to invest. Strengthening our position in Pennsylvania is a direct reflection of our confidence in the North American plastics manufacturing renaissance. SPI is now well-positioned to make long-term investments in our customers, markets, employees, and communities while continuously improving our commitment to customer service, responsiveness, quality, innovation, design, and color.”
This purchase prepares SPI to expand product lines, production assets, and development plans into other global growth markets. The two other locations will continue to expand and operate 24/7 to support the ongoing growth of their customers and markets.
The company will continue to expand its designLab™ and FSTLab in response to increasing demand for customer collaboration early in the design process.
Two new manufacturers are boosting Franklin County’s international profile.
German-based Vetter Forks and Ireland-based Burnside Autocyl LTD expect to create a combined 75 jobs within a few years.
“We are starting to develop a strong international presence here,” said L. Michael Ross, president of Franklin County Area Development Corp. “North America, but the U.S. in particular, is the target of investment globally because of our reduced energy costs and because of the political stability. You’re starting to see a lot of foreign investment taking place.”
The two companies join the growing list of international firms with a presence in Franklin County, including Volvo, Vacon, Atlas Copco, Torcomp, DeeTag, WIPRO and Gate 7.
Brazil-based Torcomp just finished a new manufacturing facility in the Cumberland Valley Business Park north of Chambersburg, where Vetter Forks and Burnside Autocyl are locating.
Taizhou Fuling Plastics’ headquarters is in one of southeastern China’s most important industrial zones.
The coastal city of Wenling, with a population of more than 1.4 million, is part of Zhejiang Province, a rising player in China’s economic expansion, and home to multiple industry clusters where manufacturers crank out textiles, machinery and chemicals, among other products.
But as labor and shipping costs rise, regions such as Zhejiang, south of Shanghai, are losing some of their advantage, just enough to give states such as Pennsylvania and areas such as the Lehigh Valley an opening to bring back some of the hundreds of thousands of jobs lost to foreign companies and offshoring.
Company Founder Xin Hu is confident he can save money by opening a new production line in the U.S., even though the company will have to invest millions in new equipment and pay its U.S. workers several times the wages of their Chinese counterparts, said Bob Chapleski, vice president of operations.
December 15, 2014
It’s not just tourism that brings business growth to the Poconos.
Officials in Monroe County see manufacturing companies continuing to grow and flourish in the region by embracing innovation and capitalizing on the reshoring movement and a ready-made workforce.
These drivers are on top of an already successful initiative to bring manufacturing to the county.
“We’ve met with more and more companies looking to pursue constructing new facilities,” said Chuck Leonard, executive director of Pocono Mountains Economic Development Corp. “I think as the economy improves, you will see more of that. We have hundreds of acres of land available.”
The types of manufacturing companies in Monroe run the gamut from plastics operations to fragrance makers and vaccine producers. It’s a diverse need that will continue to grow as companies expand their workforce, build new facilities and make more products in the United States.
In fact, about two-dozen manufacturers in the past 15 years have moved to the county, which has 4,643 manufacturing jobs, according to the Pennsylvania Department of Labor & Industry.
Swiss chocolate maker Lindt & Sprungli announced acquisition today of a 400,000-square-foot warehouse and distribution center in the Carlisle area. The facility will house a distribution center and, eventually, a Lindt USA retail factory store, according to a news release.
The new storage and distribution facility will allow the company to “produce at an increased capacity to meet growing consumer and market demand,” the release said. The news follows a recent announcement of a major, multimillion-dollar expansion plan for manufacturing at the company’s U.S. headquarters in Stratham, N.H., where Lindt produces premium chocolate products from bean to finished product.
“As a leader in the premium chocolate category, Lindt is constantly looking for ways to support continued growth and maintain strong company distribution,” said Thomas Linemayr, president and CEO of Lindt USA. “The investment in this warehouse facility is another step for Lindt toward meeting the growing demand for premium chocolate.”
Over the coming months, the new facility will be updated to meet company needs and is expected to be operating as a warehouse and distribution center in early 2015. Construction of the retail store will be part of the second phase of facility updates and is also expected to be open to consumers in early 2015.
With the acquisition of the new space in Carlisle, Lindt now operates three warehouse facilities throughout the U.S., including the storage and warehouse capabilities on the Stratham campus.
Lindt USA produces a wide range of premium chocolate products, including Lindor truffles, the popular Lindt Hello collection and a wide range of seasonal and gifting items.
There’s no doubt about it: The reshoring trend is rocking global business, with hundreds of companies working to bring their manufacturing operations back from China to North America. There are many factors fueling this move, including labor costs, transportation, quality issues and patriotism, among others. Hal Sirkin, a senior partner at Boston Consulting Group, has been examining this trend for years and admits that the recent surge in reshoring has shocked even experts and researchers. Knowledge@Wharton sat down with Sirkin to discuss the different elements contributing to the reshoring trend and how it affects global business dynamics, the labor market and even the U.S.-Mexico relationship.
The vast majority of global lighting, either traditional or the new Light Emitting Diode (LED) technology, is currently manufactured in China. My company used to do the same thing: We built our products in China, relying on the inexpensive labor to keep our products low-cost. In 2010, we made the conscious decision to move our Independence LED (www.IndependenceLED.com) manufacturing back to the United States — to Southeastern Pennsylvania. It’s been the best decision my company has ever made. Our customers have asked if the move was based on patriotism over profit and I respond simply with: “Both.”
By moving manufacturing back to the United States, we have created American jobs, increased the quality of our products, doubled the average LED warranty (up to 10 years) and reduced our total costs through advanced automation and proximity to a large portion of our customers. Satellite maps of the night sky reveal the “hot spots” around the planet, and the U.S. Northeast Corridor glows like a beacon. Our operations outside of Greater Philadelphia are centered between Washington, DC and New York City, with easy access to the region that has the highest population density coupled with highest cost of electricity in the U.S. Putting a lighting business in an area that uses a lot of lights seemed like a pretty good idea.
Our customers now range from the Fortune 100 to the U.S. Military and from independent small business owners to franchise owners. With a growing national and international sales network, we educate our customers to look into the total cost of ownership which is often lower with U.S. made products. The idea is pretty simple: do it right from the start and save on the replacement labor and cost of shipping back failed imported products.
To read the remainder of this article, as well as Szoradi’s Top 10 Reasons Independence LED Manufactures in America, click the button below.
– Charlie Szoradi, Chairman & CEO, Independence LED
Credit: Industry Week, May 21, 2014
Armstrong World Industries Inc. today said they have chosen Lancaster for a new $41 million luxury flooring tile production line that the company is reshoring from China. Armstrong CEO Matthew J. Espe said in July the company was planning to bring production of the tile back to the U.S.
The state Department of Community and Economic Development later confirmed it was talking to the company about the reshoring. In today’s release, Armstrong said it received support from the state.
DCED has offered Armstrong the opportunity to apply for a Pennsylvania First grant of $350,000, said Lyndsay Frank, a DCED spokeswoman.
The company will modify part of its existing 600,000-square-foot flooring factory at 1067 Dillerville Road to include the luxury line, Armstrong spokeswoman Jennifer Johnson said. The work there will add about 57 jobs to the Lancaster production staff. Work on the factory is expected to begin in early 2014 and wrap up a year later, with production moving over and starting in mid-2015.
Credit: Central Penn Business Journal: October 10, 2013