In 2016, Monster Moto, a miniature motorcycle and go-kart manufacturer, began the process of installing a factory in Ruston, Louisiana, a noted aspect of President Donald Trump’s campaign desires.
Monster Moto’s attempts to bring work back to the U.S. show just how complicated the steps have become.
According to Reuters’ Nick Carey, 20 years of outsourcing factories has seen one out of four U.S. industrial sites flee for overseas production. In the case of Monster Moto, key parts such as bike frames and engines must still be shipped in from countries such as China because of the heavy investment by companies in foreign sites.
Speaking on the subject, Monster Moto Chief Executive Alex Keechle said, “There’s just no way to source parts in America right now. But by planting the flag here, we believe suppliers will follow.”
Facing the prospects of President Trump’s suggested “border tax”, the incentivizing of relocating business by corporations still faces its set of obstacles.
For example, U.S. automakers with billions of dollars worth of established operations outside the U.S. can’t simply deflect from their respective part suppliers. As Monster Moto proves to be a prime exhibit, the task of seeking a location to reopen business domestically also carries the burden of negotiating terms with proper local and state authorities.
While demand for goods produced within the U.S. has stoked a rising consumer prerequisite, the top-line costs for supplies needed to satisfy such a request remains a challenge.
“Consumers won’t give you a free pass just because you put ‘Made in USA’ on the box,” Monster Moto CEO Alexander Keechle explained. “You have to remain price competitive.”
Reputable shipping conglomerate UPS was a key figure in rerouting Monster Moto’s domestic shipping lines into Ruston. However, the company’s CEO David Abney stated his concerns for how the public may view the puzzle that is shifting business back home. “It’s almost as if people think you can just unplug manufacturing in one part of the world and plug it in to the U.S. and everything’s going to be fine,” said Abney. “It’s not something that happens overnight,”
Casey spoke with a White House official in regards to encouraging U.S. businesses to re-secure operations inside U.S. borders, where a focus on galvanizing American workers and corporations was relayed. Adding essential training for future employees and ridding the impact of excessive economic regulations were targeted steps to easing possible transitions.
“We recognize that the manufacturing jobs that come back to America might not all look like the ones that left,” said the White House official, “and we are taking steps to ensure that the American workforce is ready for that.”
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