The Enid News and Eagle, Enid, OK

Business

December 29, 2012

Small businesses face hurdles in 2013

(Continued)

NEW YORK — Onshoring



A trend that’s expected to gain speed in 2013 is what’s calling onshoring. That’s the term for manufacturing that had been done overseas, and that’s now taking place back in U.S. factories. Apple Inc. earlier this month said it would move production of some of its Mac computers to the U.S. from China next year — but many small businesses already have been making the switch. While Apple is an example of a big company moving in this direction, the majority of U.S. manufacturers are small businesses.

There are several reasons behind the trend. As China becomes more of a middle-class country, wages for its workers are rising, and that is lessening some of the appeal of manufacturing there for U.S. companies, said Steven Kaplan, a professor of entrepreneurship and finance at Chicago’s Booth School. Over the past two decades, it was the cheaper labor in China that prompted businesses of all sizes to have everything from computers to clothes to food ingredients made in China.

The rising cost of fuel, which has made transporting goods more expensive, is another factor in onshoring.

“Manufacturing in the U.S. is relatively more attractive than it has been in 20 years,” Kaplan said.

Skilled worker shortage

While companies’ caution has weighed on the job market, many company owners who actually want to hire say it’s hard to find workers to fill some positions.

It’s becoming more difficult to find people who have the skills they need, these owners say. Many new manufacturing jobs require high-tech skills. They include positions at factories where computers are used to create products like airplane parts and machinery. And some require several years of training, said Shane, the Case Western Reserve professor. For example: A company that makes metal molds that in turn are used to create automobile dashboards. That takes a machinist who knows cutting-edge processes to make the molds.

“You cannot take someone off the street to do it,” Shane said.

Because of changing technology, owners are struggling to find qualified workers in 2013.

“There’s a whole level of work that’s going to require skills that weren’t needed in traditional jobs,” Arensmeyer said. He noted community colleges across the country are offering courses that will help train workers to fill these jobs, but training takes time, and the demand for jobs may continue to outstrip the supply of qualified workers.

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