As my first semester of my return to school comes to an end I thought I’d spend a moment to reflect on some highlights of what I have learned.
I forget sometimes when I’m speaking to people, they don’t know me. These people are age’s 20 through 50+; it’s quite a mix bag of people, from all walks of life, from all sorts of businesses and business levels.
We had a discussion on the topic of, “What would it take or is it too late for U.S. businesses to stop outsources to overseas companies?” (and therefore US workers would keep their jobs.)
I wrote, what I called a simple plan of action, which I thought was quite thorough.
Here is my plan to reduce (not eliminate) outsourcing:
The first thing that needs to happen is to stop the bleeding.
The Federal Government needs to step in (as they do with other things) and before a company just shuts down and leaves, ask the following questions:
What are you doing?
And
Why are you doing this?
New rules would be implemented to assist businesses in making the right decisions, help reduce unemployment and help the business become more profitable.
BE EFFICIENT!
Before a company moves they must show they have tried all the so called management programs; MRP/Six Sigma/Lean MFG whatever, they have tried something! If they haven’t they must try one technique for a period of one year. They must report these monthly numbers to some branch of the government.
This would not be too unusual as there are other reports sent into the government on a regular basis, i.e. OSHA information, Safety information, etc. This could be called: Efficiency Report
EXTRA CHARGES!
Before final approval has been granted for a company to outsource they should be made aware of some tough regulations such as: Components coming back into this country from an outsourced business, are be subject to some special import tariff. Before final approval the business must recalculate all the numbers that showed the savings they would receive by outsourcing, and include in these numbers this tariff, to see if it is still cost effective to move overseas.
MADE WHERE ??? !!
If it’s still cost effective to move, the business must be made aware of the following:
Components produced in a foreign country, assembled here in the U.S. and then sold, cannot say:
“Made in the USA” (And by the way imports from Asia or Europe are not NAFTA produced so these products will incur some other charges when exported to Mexico or Canada)
RETRAIN OUTGOING EMPLOYEES!!
Employees of the firm planning to leave the U.S. must be given a one year notice. (currently it is 90 days) This will allow them the opportunity to find another position in the last six months.
During this one year period employees should be taking the same manufacturing efficiency courses the firm is conducting for the government. (MRP, Six Sigma, Lean Mfg) This will not only keep the business moving, it will provide small efficiencies for the company during this one year period to help recoup monies lost and also for the employee, will give them an asset for their next employer.
During this one year period, if the company shows in good faith progress in the efficiency numbers, the training performed, they will receive a federal tax reduction, again to offset monies lost during this one year period.
The future:
I believe right now the way the economy is everyone is in a panic. We have been through other financial downturns in the past and have recovered. I believe back then we wouldn't think about using a foreign country to produce product. We rode it out and we recovered. If business is not willing to ride this out, the economy will never recover.
Take the small mom-and-pop businesses that are producing product in Anytown, USA. If these people don't stay in business, it effects: the local restaurant, the truck driver, UPS pickups, the landscaper, etc. multiply this by 10,000 mom-and-pop businesses. Now bring it up a level to an IBM, Ford, Coca-Cola, these firms are typically employing half a town! What if these firms decide, 'nah let's just move it all over to Singapore' ???
Maybe these corporations need to stop (for a short period of time) putting the buck in front of everything else and remember where they came from AND WHO GOT THEM THERE!
THE NOW UNEMPLOYED CONSUMERS.
Some people in my class called me a Socialist!! Go Figure.
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