By Michael F. Carmichael
Feb. 23, 2012
The final quarter of 2011 saw the U.S. manufacturing sector experience modest, yet still unexpectedly strong growth. Many economists predict that will continue this year. Factory workers put in more than 40 hours a week on average, the first time that’s happened since the late ‘90s – leading to an expectation that new manufacturing hires will continue. The jobless rate continues to decline amid other positive signs that seem to indicate an improving economy.
In Europe, of course, that’s not the case. And, in Asia, an expanding economy is leading to higher labor and logistical costs – both of which are causing some American manufacturers to revisit earlier decisions to outsource manufacturing to the area.
And, it’s reinforcing decisions made by others to keep their manufacturing here in the first place.
| Master Lock CEO John Heppner addresses employees and guests before President Obama's remarks. |
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Insourcing
Master Lock CEO John Heppner was one of those singled out at President Barack Obama’s State of the Union address. He and the company he heads were at the joint session of Congress representing a trend the president hopes will grow over the next few years. To emphasize the importance of what he calls “insourcing” – jobs that were previously outsourced to other countries – the president visited a Master Lock factory in Milwaukee on the day after Valentine’s. As the president was taking a tour of the production area, Heppner was warming up the crowd.
Commenting that he was nervous about what the employee taking the president on the tour might say, Heppner exclaimed, “God knows, the president could come back a Republican.” As the workers broke into raucous laughter, Hepner continued, laughing, “Did I really say that?”
The 500 employees and visitors gathered in front of a temporary podium were excited that the president was “in the house,” to use one of his expressions. Heppner was definitely into the spirit of the occasion and sincerely proud of his employees.
“We went through hell together, did we not – and back!” Heppner exclaimed, talking about the rocky previous years, and pausing as he addressed his audience. “I just thought of all the lost production over the last few days.” He paused again. “I can always bring in a few locks from China to make up the difference,” he said as the crowd booed heartily. “Okay, I’ll take it back.”
Turning serious, Heppner continued with obvious emotion, “We figured out how to make this facility productive. You guys helped us. We worked together. Today, it’s about trust. We care more about our mutual success than our own. Because we did it, we have the president of the United States, Barak Obama, here to recognize what we’ve done. I love you all!”