Script/Transcript for program: Myths about outsourcing

Mar 30, 2006 09:36 America/Los_Angeles Where will your grandchildren work? [With Three Million Manufacturing Jobs Lost in the U.S. in the Last Five Years, Where Will Your Grandchildren Be Working? [TROPHY CLUB, Texas, March 30 /PRNewswire/ -- The following was released today by Tony Harvill of Revitalizing American Manufacturing Consulting:] U.S. manufacturing jobs do not have to go overseas, insists Tony Harvill. However, right now American manufacturing companies are not doing enough to stop the job drain. They're taking the easy road out and have given up. Meanwhile millions of middle class workers continue to suffer. Their grandchildren don't have a chance, he says. Harvill stands ready to deflate the myths about outsourcing. Cheaper labor is not the real cost problem. Other costs are. "These costs are driven by management and egos of management," says Harvill, who has turned around seven plants in his career. The first place to streamline and downsize is in administration, management and corporate expenses. U.S. manufacturing leadership must change their thinking. They think that outsourcing will solve their problems, but it will only in the short term. If they eliminate American jobs and buy cheap foreign products, profits will temporarily rise, but the real problem of administrative, management, and corporate expenses remains. Foreign competition does not have these same costs. When a product is no longer manufactured in the United States, American companies must become the middlemen and buy the product from foreign companies. Pretty soon the retailers will get smart, eliminate the middlemen, and go directly to the foreign makers. This will bankrupt the U.S. companies; there will no longer be a need for them. U.S. manufacturing corporations must abandon traditional methods. The current organization must undergo a dramatic change in culture and perform corporate functions in a new and different way. U.S. manufacturing corporations must treat their employees differently. Implementing technology and a new culture requires a huge commitment from the entire corporation. The results are rewarding and can include improvement in profits, cash flow, inventory turns, and employee morale, to name a few. Does America really want to again be a world power in manufacturing? Will future generations experience the American dream? If Harvill can help it, the answers will be a resounding YES. Now, whoâ