A Who’s Who of insourcing
Companies that have relocated production facilities from overseas to the United States:
(Source: April edition of the Council of Supply Chain Management Professional’s Hot Topics newsletter, The Boston Consulting Group and corporate Websites)
- Tesla – maker of electric sports cars switched most of its Asian and U.K. production back to its Northern California headquarters to reduce cost and quality problems.
- Sauder – the furniture manufacturer is transferring production from Southeast Asia back home to North Carolina.
- NCR – maker of ATM and self-checkout machines consolidated operations from China, India and South Carolina in a new plant in Columbus, Ga. It plans to add another 370 jobs by 2014 by building products that are currently made in China, Brazil and Hungary.
- Wham-O – returned half its production from China and Mexico to the United States in 2010. The company makes the Frisbee and Hula Hoop.
- Otis Elevator – moving production from Nogales, Mexico, to a new plant in South Carolina. It estimates a 17.3 percent savings in shipping costs and about 20 percent in energy savings by centralizing production and design. Final assembly will remain in Mexico.
- Hy-Lite Blocks – recently moved its molding operation from China to its headquarters in Pensacola, Fla. The company makes acrylic architectural blocks for use in privacy windows, partitions and indoor radius walls.
- ET Water Systems – having made irrigation controls in Dalian, China, since 2002, recently relocated production and assembly to San Jose, Calif. Not only is it faster and cheaper to manufacture in San Jose, but the move has also improved quality and yield and accelerated innovation and product development.
- All-Clad Metalcrafters – the high-end cookware manufacturer is bringing lid production back to the United States from China to be closer to both customers and its main factory and to reduce capital costs.
- AmFor Electronics – the electronics manufacturing services company cited delivery responsiveness and ease of design revisions as reasons for on-shoring wire-harness production and some final assembly from China and Mexico to Portland, Ore. After implementing lean production practices, AmFor also found that landed costs were lower than when it was using overseas suppliers.
- Farouk Systems – hair iron and dryer manufacturer is moving some final assembly from China and South Korea to a 1,000-worker factory in Houston, in part to cut inventory costs.
- Neutex Advanced Energy Group – maker of commercial fixtures with light-emitting diodes is transferring this production from China to a new 200-worker plant near Houston.
- Lincolnton Furniture – founded by a man who sold his family’s three-generation plant in North Carolina in the 1990s and then helped U.S. companies outsource to China, has bought back the old plant and is making wooden bedroom and kitchen.
- Electrolux – European appliance maker plans to build a new cooking products plant in Memphis, Tenn.
- Chesapeake Bay Candle – small company in Glen Burnie, Md., switched production from China to a plant it built in Maryland so it could be more responsive to retailers. It makes candles for the U.S. market and is even exporting some candles to China.
- Whirlpool Corp. – appliance maker in April opened a $200 million manufacturing and distribution facility in Cleveland, Tenn., to make premium cooking products. The facility, which replaces a 123-year-old nearby plant, employs about 130 workers and incorporates advanced production techniques.
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