The Riverside County Manufacturers and Exporters Association - Southwest Cluster will be sponsoring a "Reshoring for Exporting" conference from 8 a.m. to noon on Tuesday, Oct. 1 at Continental East Development, 25467 Medical Center Drive in Murrieta.
Recent articles in prestigious publications such as The Economist, The Financial Times and The Wall Street Journal have indicated that a growing number of American companies are moving their manufacturing back to the United States from overseas. Many of these companies are relocating production facilities back from China due to the higher total production costs they are experiencing there. Some companies indicated that when the costs of shipping, customs duties, and the increasing cost of labor in China are factored into the evaluation, the cost of producing the products in California was only 10 percent more expensive than in China. Also, company owners have increasingly recognized that innovation was negatively impacted due to the physical distance between the manufacturing of the product overseas and the domestic design of the product and that this has adversely affected product quality in some cases.
While the numbers of companies that have publicly announced that they are "reshoring" production back to the United States are not yet large, there is a clear trend toward bringing manufacturing back to American shores. Many companies had gone to China because they thought that wages overseas would be significantly lower than in the United States, but have since learned that there are many hidden costs in terms of manufacturing in East Asia. Some companies are bringing a part of their manufacturing operations back to the United States, often with the primary objective of serving the United States and North American market. The Boston Consulting Group has reported that 37 percent of those with annual sales above $1 billion were planning on bringing manufacturing facilities back from China to America.
In honor of National Manufacturing Month in Southwest Riverside County, the "Reshoring for Exporting" event will include a roundtable led by George Chamberlin, executive editor of The Daily Transcript, San Diego's prestigious daily business publication. It will also include speakers with a wide range of experience in manufacturing in the region as well as presentations on the importance of foreign direct investment on the area’s economy and the need to grow exports from Southwest Riverside County region.
The Riverside County Manufacturers and Exporters Association recently approved the formation of the Southwest Cluster in order to provide local outreach to support the large number of manufacturers and exporters in Southwest Riverside County. The organization is regionally focused and encompasses a number of communities, including Murrieta, Temecula, Lake Elsinore, Hemet, Perris, Menifee and other nearby areas. All manufacturers and exporters (and prospective exporters) are welcome to participate at the monthly meetings to promote the growth of business in the region.
Joseph Mignone, the chairman of the Southwest Cluster, indicated that "the event on October 1 and the other events that we are planning for National Manufacturing Month will shed new light on the opportunities for promoting the growth of manufacturing and exporting from Southwest Riverside County. We recognize and appreciate the trend toward ‘reshoring’ of production facilities back to the U.S. and want to determine how our region can best benefit from this trend."
There is no cost to attend and anyone interested is welcome to attend. Please send your RSVP to email@example.com.