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East Bay firm counting on \'reshoring\' trend

by:J&D WATER     2019-08-11
Wright Engineering Plastics in Santa Rosa uses more machines to compete with Chinese manufacturers.Wright Engineering Plastics in Santa Rosa uses more machines to compete with Chinese manufacturers.When Jeff bolllengier and Richard Stump set up their East Bay Company in 2008, they dreamed of changing the way people eat.Simple waves with an inward bowl --Curved lips guide the food back to the spoon to help prevent excessivethe-edge spills.But when it came time to choose where to make the bowl, Bollengier and Stump followed suit and chose to outsource production to a factory in China.\"We basically do what we think everyone else does,\" says bolllengier .\".Not anymore.Last fall, Wave decided to produce all of its products called \"cup bowls\" in the United States.This is the trend that is being seen elsewhere.Businesses, from Wisconsin\'s main lock to Chesapeake Bay candles in Maryland, have moved manufacturing jobs back to the United States, the \"inner bag\" President Obama promoted in his State of the Union address in January \".Others use the word \"offshore\" or \"offshore.Last week, The New York Times reported that Google will assemble the new media player Nexus Q at a factory in San Jose and use the word \"design and manufacture in the United States\"S.A.\"Etching on the device.Eric Appelblom, vice president of sales at Jatco, said: \"There has been a lot of discussion about restructuring in recent years,\" the joint city plastic molding and injection molding company that makes cup bowls for simple waves.Appelblom said that about six months ago, he began to see a reorganization of \"from idea to reality.\"Any decision to make a product in the United States seriously affects the total cost.According to a report from the Boston Consulting Group, the average annual wage increase in Chinese factories is 15 to 20%.Other costs that need to be considered include shipping costs, inventory and even natural disaster risks.Considering all costs, by 2015, the cost gap between outsourcing to some states in China and the South, such as manufacturing in South Carolina and Alabama, was reported, if these products are produced for the North American market, they will be the smallest.California has no low-\"Cost description\" in the report \".According to the US Department of Commerce, the average annual salary of California manufacturing company employees in 2009 was $53,200, 21% higher than that of South Carolina.Still, Appelblom says California has an advantage over other states and it\'s worth noting that products can be delivered easily anywhere on the west coast.Bolllengier says Jatco, his new East Bay maker, is perfect for his company.His office in Hayward is five miles from Jatco\'s headquarters in united city.Bollengier, pleased with the inconvenience caused by flying to China and \"looking after\" overseas production quality, said he is now visiting Jatco every other day.While the company\'s executives are very concerned about the return trend, there are still some obstacles.As more jobs flow overseas, community colleges in many states have canceled manufacturing projects and created jobs.Training vacuum.There are also shortages of skilled workers across the country, and the training of new workers has become an economic burden for small companies.In an industry group discussion in Santa Clara, California executives mentioned that it is difficult to recruit enough skilled workers to attract reflux.Fred gabasine, vice president of operations at Gigatronics, who produces microwave components and signal generators in San Ramon, said he is looking for technicians who can repair machines used by the company, but \"an art of dying\" has been discovered in the United States \".He said his company was considering moving to Singapore because it could not find enough technicians because Singapore was home to his competitors.\"It is now difficult to find any community college that is engaged in manufacturing projects,\" J., Dean of Mission College.Laurel Jones, a group member of the day, said in an interview.About 10 years ago, her Santa Clara Community College stopped teaching production skills in response to offshore outsourcing, Jones said.Despite the growing demand in the industry, Jones says manufacturing projects are \"very expensive\" and are only good for a small number of students.\"It may be difficult for trained workers to retain.Todd Linera, general manager of Corwil Technology Corp, said many job seekers see manufacturing as a ladder to other opportunities.An integrated circuit assembly and testing company located in Milpitas.Traditionally, \"we don\'t appreciate manufacturing,\" says David Beach.Director of Innovation Manufacturing Alliance at Stanford University.\"Our culture characterized manufacturing as dirty, noisy, not very well paid, and not much in the future,\" he said .\".\"Why is there an educational infrastructure that prepares young people to go to areas that their parents think are inappropriate?But companies that move manufacturing back to the United States are discovering the value of \"made in the United States\"S.A\" brand.Bollengier\'s company, Simple Wave, promotes the brand on the Calibowl website and on the packaging of each product.\"Made in U.S.A.\"This is a brand in demand,\" said bolllengier .\" He refers to countries that specifically demand American products.About half of his products are sold to customers in South Korea, Australia and Singapore.Bolllengier said that over the years thinking about \"profits, profits\" in the United States has led many companies to ignore the quality and innovation associated with American products.Bolllengier said it was \"inevitable\" to re-support, and he predicted a snowball effect once more companies tried.\"With the rising labor costs in China, I can assure you.Zhang erchi is a free writer.E-Postage: Enterprise @ sfchronicle.
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