Offshoring Study Says Looming Workforce Shortage is Greatest Threat to Manufacturing

MACKINAC ISLAND, Mich., June 4 -- The Detroit Regional Chamber, along with its partners the Michigan Hispanic Chamber of Commerce and Accelerator Group, today released a study assessing the effects on Michigan manufacturing of offshore outsourcing.

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"According to the study, the attention on offshoring instead of workforce has been misplaced," noted Chamber president and CEO, Richard E. Blouse, CCE. "The anticipated worker shortage is striking."

Key findings of the 40-page report, titled "Impact of Offshore Outsourcing on the Manufacturing Sector in Michigan and the United States," include the following:

* Increased manufacturing productivity plays a far greater role in job losses than offshore outsourcing.

* Only 12% of lost jobs -- 1 in 8 -- is due to trade, which includes both job displacement from imports and offshore outsourcing.

* A substantial worker shortage in Michigan is looming and poses the greatest real threat to the future of manufacturing competitiveness.

* Michigan needs to improve the business climate for manufacturers and increase foreign direct investment ("insourcing").

* Michigan needs to improve its national ranking in areas destined for future growth (biotechnology, etc.).

To address manufacturing competitiveness in Michigan, the report makes numerous recommendations to improve Michigan's business climate.

Seema Chaturvedi, managing director, Accelerator Group, and author of the study, noted that the challenges Michigan and U.S. manufacturing face today also present new opportunities. "The key is to gain more from opportunities presented by globalization. Growth of the global economy is not a zero sum game," she concluded.

The complete report and executive summary can be found at the Detroit Regional Chamber http://www.detroitchamber.com/MPC/ .

The Detroit Regional Chamber is the leading business organization in Southeast Michigan and the largest chamber of commerce in the country with more than 20,000 members. The Chamber's mission -- to power the economy for Southeast Michigan -- is carried out through business attraction efforts, public policy advocacy, strategic partnerships and quality products and services for members.

For more information, contact Amy Hennes at 313-596-0367, 313-378-2238, or e-mail: ahennes@detroitchamber.com .

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