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www.wmfd.com - For decades now, many western companies have been outsourcing manufacturing jobs overseas to take advantage of cheap production costs, but that trend may be changing. }}" />

   
 
 
Production And Jobs Moving Back To The USA

Story By: Larry Stine

 

 

 
 
 
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  Original Published: 5/19/2013  For decades now, many western companies have been outsourcing manufacturing jobs overseas to take advantage of cheap production costs.    But that trend may be changing.    CNN's Maggie Lake went to New Jersey, and spoke with a small business owner who says making things at home is more cost-effective, even if wage bills are higher.   Workers are cranking out precision machine parts at the Komo manufacturing plant in Lakeoowd, New Jersey.   "We're in the process of building some building table machines here," says Mike Kolibas of Koba.   Two years ago, this work was done by Chinese laborers in the city of Nanjing.   Today, production and jobs have moved back to the United States. More than 50 people are now employed here, many of whom were unemployed a few years back.   "I said we have to get this product back here, because that's what our workforce wants, that's what our customers want," says Kolibas.   The machines you are looking at here were actually in China.   One big reason: Quality control. Customers of Komo's metal and wood cutting machines perceived products made in China as cheap./ And while Chinese labor is less expensive than in the U.S....   "I find that I hire one skilled mechanical assembler or electrical assembler here. I would probably need five over in China, that's the skill difference," says Kolibas. "   The bottom line?   "We have become more profitable because of this move. We're doing better here financially than we were in China," says Kolibas.   Komo is not the only manufacturer bringing jobs back to the U.S. As wages in low-cost factory centers rise, the cost benefits of outsourciing is fading fast.   Apple says it will make more computers here.   And Walmart is committed to stocking more American made products.   "The renaissance is definitely there. America is now a more attractive place to manufacture, the dollars is at more appropriate levels and also because we've got a lot of cheap energy coming online," says Brookings Senior Fellow Martin Neil Baley.   A renaissance maybe, but times have changed.   "Fifty years ago, manufacturing was the pathway to the middle class for so many Americans. Even if you didn't have much of an education, if you were highly motivated and smart, you could succeed. But experts say the future of manufacturing in America may look very different," says CNN's Maggie Lake. "A lot of the jobs that are basically tied to manufacturing now are white collar jobs, service sector jobs, rather than factory floor jobs."   That demands a more skilled workforce. Komo and other manufacturers would like to hire more, but many people coming through their doors, just don't have the skills.   Challenges remain, but with millions still out of work, any jobs returning to the U.S. can make a big difference for communities.   "A veteran from World War II, Iwo Jima, he just wanted to shake my hand and thank me for bringng manufacturing back to the United States," says Kolibas.   The Made in the USA label, is proudly on display again at Komo, many in the U.S. hope the label, is here to stay.  
   
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