Legislation Announced to Grow Local Industries by Investing in Local People
July 31, 2008
With Local and National Experts, Senators Craft Bill to Address Skilled Worker
Shortages Facing Businesses and Create New Pathways to Good Jobs
Press Release by The Workforce Alliance
WASHINGTON, D.C. - Today, Senators Sherrod Brown (D-Ohio) and Olympia Snowe (R-ME) announced legislation – developed in collaboration with D.C.-based The Workforce Alliance (TWA) and other experts in the workforce field – that will promote long-term competitiveness for American industries and employment opportunities for America’s workers. Read more
Blog Updates from the Workforce Innovations Conference
July 14, 2008
Workforce Innovations, the nation’s largest conference on Workforce Development, is well-known for its tracks on regional economic transformation. Several participants in the Quad-States Regional Transformation initiative are representing the Four-States region this week at the conference. Jasen Jones, and Gary Box from the Southwest Missouri WIB and Jane Wheeler from the Northwest Arkansas WIB are in New Orleans this week for the conference.
Jasen is one of 26 workforce/economic professionals serving as volunteer “bloggers” to capture ideas and share insights on a special blog/website set up for the conference. Catch the updates from Jasen and other bloggers online at the new Innovating Networks website.
Bid Opportunity Announced for Asset Mapping Technical Assistance
July 14, 2008
In conjunction with the Quad-States Regional Transformation intiative, the Southwest Missouri is pleased to announced the pursuit of bids for the Asset Mapping deliverables for the regional transformation initiative. Visit the RFP page online to download the application form and RFP announcement from the Workforce Investment Board of Southwest Missouri.
The World - Rounder or Flatter
July 8, 2008
Today’s Agurban column from Jack Shultz speaks to the same realm of opportunity that’s a target for several local communities and the Quad-States Regional Transformation initiative. He challenges the flat vs. round debate and speaks to rural sourcing as opportunity we should be ready to seize as doors continue to open for rural areas.
The Chinese and Greeks first postulated that the world was round. Christopher Columbus and other explorers later proved the fact to the bewilderment of many Europeans. But, in 2005 the columnist Thomas Friedman argued that the world is in fact flat when he published his book by that same name. His premise was that rapidly emerging technologies, increasing global communications and global freedoms were quickly turning a differentiated world into a truly global one.
It’s our contention that the rapid increase in oil prices is perhaps rounding Friedman’s world and that American rural communities could benefit. Here’s our rationale: Today it costs over $9,000 to ship a 40-foot container from China to the U. S. East Coast, over 3 times what it cost just 8 years ago. Fuel costs make up 70% of the marginal costs for a container shipped today compared to only 20% in 2000, so any fuel changes are quickly factored into shipping rates. During the same time period wages in China have more than tripled.
It was the combination of low labor costs and relatively low transportation costs that drove the Chinese manufacturing model just as falling communications costs led to the emergence of call centers in India. While India will continue to have a dramatic competitive advantage with call centers, we’re not so sure about Chinese manufacturers.
We saw the impact and perhaps the future last week when we visited with a long term client of ours. This company, European owned, set up operations in the USA several years ago. Their manufacturing philosophy is:
- We want to buy (outsource) rather than make where we don’t have a strong competitive advantage.
- Consolidate our manufacturing footprint where possible.
- Only locate in the lowest cost countries.
Their U. S. plant is largely an export one. It only takes one week of production to handle all of their sales in this country.Their most recent expansion went to Mexico, primarily because of a major disparity in tax rates between the two countries. Labor, which accounts for only 2 to 3% of the final product’s value, is not a major issue for them.
Right now, we’re talking with them about an expansion to their existing plant which is located in a rural community. It is a conversation we are increasingly having with a number of other manufacturers. Is your community ready when these manufacturers come back knocking on the door?
Jack Schultz is the CEO of Boomtown Institute and Agracel Inc., an industrial development firm majoring in rural America, author of Boomtown USA, and speaker. Boomtown Institute serves as an economic development mentor to communities across the United States, leading communities to realize their full potential.
