A Bloomington, Minnesota, site selection firm is bringing manufacturing—and the pride that U.S. workers take in their products—back to America. Ecodev, founded by Dana Olson, helps companies to expand, relocate, and consolidate their production operations within U.S. borders.

While a guest post written for Forbes last week asserted, “The irony is that becoming the world’s leading solar manufacturer is not a role the U.S. should seek to fill,” Ecodev begs to differ. The company is capitalizing on a growing movement in the United States that seeks to bring back manufacturing jobs, balance trade, and restore cachet to the “Made in America’ label.

In fact, Olson told Fast Company in a recent interview, “Ten years ago, customers were demanding that their companies operate overseas because they thought they'd get a cheaper rate.” But, he believes, a bounce back of patriotism, as well as angst about the environment will impede foreign manufacturing. "Now companies would much rather manufacture in the United States, for loyalty as well as cost savings."

As just one example, a little over a month ago, Ecodev secured a new production site for Ultra Green Packaging, Inc., a manufacturer of biodegradable food containers and serving ware. The company is bringing its China-based operations back to Devils Lake, North Dakota—a city with a population of about 7,000—and in the process will create about 500 jobs over the next five years.  

With a desire to manufacture its products on U.S. soil, Ultra Green worked with Ecodev on a nationwide search to identify the community which could best accommodate its China operations. Devils Lake was chosen, based on its abundance of wheat straw, which is used in Ultra Green’s manufacturing process, as well as an attractive economic incentive package that includes $5 million in grants.

“Relocating its China operations to Devils Lake will ultimately help Ultra Green save money and better support the company’s long-term growth needs,” said Olson. “Ultra Green is actually leading a wave of U.S. companies with overseas operations [that] are now eager to relocate back home, as they discover there are … locations that allow them to produce as cost effectively as overseas.”

Restoring the Balance of Trade

Another indicator that Americans want their factories on home turf is a legislative briefing held last week in Dayton, Ohio, by a coalition representing manufacturers, farmers, and organized labor. At the meeting, the Coalition for a Prosperous America presented a blueprint for international trade reform that would seek to restore the U.S. balance of trade and reduce the budget deficit.

The coalition—which claims to “represent the interests of 2.7 million households through our agriculture, manufacturing and labor [backers]”—is organizing support among public officials and businesses for its legislative agenda in the presidential election swing states of Ohio, Pennsylvania ,and Michigan. The group is focusing on manufacturing hubs like Dayton, which are rebuilding industry and staking out new business in advanced technologies.

Among its members are the AFL-CIO Industrial Union Council, America’s Got Product, American Corn Growers Association, American Jobs Alliance, American Made Matters, Atlas Tool & Die Works, Inc., Berkshire Insurance, Citizens for Equal Trade, Corning (News - Alert) Inc., Eco Goods, Inc., Economy in Crisis, Free Trade Reform, Georgia Industry Association, Global Geopolitics Net, JJ Popiel Enterprises, League of Rural Voters, Made in USA Certified Inc., National Council of Textile Organizations, National Farmers Union, Nucor Corporation, Ohio Conference on Fair Trade, On Demand Energy, Organization for Competitive Markets, Qualtek Manufacturing, Revere Copper Products, SaveAnAmericanJob, Saving U.S. Manufacturing, Shape Technologies, Solar Atmospheres, Steel Manufacturers Association , Storm Technologies, Inc ,Teamsters Local 261, United Steelworkers, Universal Electric Corp., US Business and Industry Council, US Steel Corporation, and WireNet.

A region-wide manufacturing task force is headed by Dayton City Commissioner Nan Whaley and includes Dennis Rediker, former chief executive of Standard Register and now of Composite Technology Investors LLC, which owns two local manufacturers including an Air Force contractor. “This is a real issue, not only for the Dayton region but for the country,” Rediker told the Dayton Daily News. “No doubt the policies of the U.S. government are not creating a level playing field at home or abroad.”

The coalition wants the United States to adopt a coordinated national trade strategy to achieve balanced trade— so that exports more or less equal imports, if not exceed them. The United States has been running trade deficits of $600 billion annually, a cumulative deficit of $5.85 trillion in a decade. Critics say poorly enforced trade agreements foster national debt, sap job growth, erode industry, including critical defense work, and reduce middle-class jobs.

The coalition is pushing for a vote in the House of Representatives on legislation to crack down on currency manipulation by other nations. A vote has been held up by House Speaker John Boehner, who has said it could provoke a trade war.

A U.S. Manufacturing Renaissance

Finally, the Boston Company, a global performance-driven investment management firm, has released a study claiming that American manufacturing is at the “tipping point”—and is ready for a strong rebound. According to company analysts there are several reasons why the United States may now be in a position to reclaim manufacturing leadership—among them:

1. The dollar has weakened. The decline of the U.S. dollar has reduced the relative cost of U.S. wages in comparison with other locations.
2.  Wage differentials have narrowed between U.S. and key manufacturing economies. Wages are an important factor for companies when deciding where to locate production.
3. Natural gas prices have declined in America relative to global price levels. Natural gas is used in many energy-based industries, such as petrochemicals, steel and fertilizers. These companies are more globally competitive due to increased natural gas production and lower prices in the United States. In addition, natural gas is used to generate electricity, which is a significant manufacturing input cost; and natural gas is already used as a transportation fuel for refuse trucks, and its use for large-scale trucking is rapidly developing. The potential to displace high-priced oil as a transportation fuel has many positive implications for the U.S. consumer and U.S. trade deficit.
4. Global supply chains have become slower and more expensive. The cost of shipping goods around the globe has become more expensive due to higher fuel prices. Transport times have also lengthened due to port delays, container lines’ implementation of slower speeds to minimize fuel costs; and the use of larger ships, which take longer to load and unload. Longer transport times further increase costs by requiring excess stock to be held; or expedited, in order to rush goods to market.

The analysts forecast that, while all U.S. industry will benefit from a renaissance, small and midsize companies will be the real winners. That’s a ray of sunshine for America’s solar manufacturers.

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