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  1. 1. South Carolina Manufacturing Communities Revive South Carolina, Bring Back Jobs, Restore Our Nation Small Group Teams Can Change the World and bring American jobs back for good David R. Eshleman ESHLEMAN ASSOCIATES INC. Davidson, NC Ÿ Charleston, SC 843-801-3123 Original presentation given to Charleston Legislative Delegation June 6, 2011
  2. 2. Ford Supplier Manufacturing Campus 1.  August 2004, Mayor Daley hails reopening of Ford Chicago Assembly Plant supplier campus (4 buildings, 1.6 million sq. ft.) ‒  Ford spent $400M to revive assembly plant, begun in 1924 making Model T ‒  1,400 new jobs with 12 top-tier companies that produce parts for Ford ‒  2,600 Ford assembly workers ‒  Proximity: supplier parts immediately sent to assembly line (low/no inventory) ‒  Key: close communication of plant workers and individual supplier workers 2.  August 2010, Daley, Gov. Quinn Announce New Explorer at Ford Plant1 ‒  Created 1,200 new jobs. Feb 18, 2014 Rev 7-3 © 2002-2014 David R. Eshleman. All Rights Reserved 2 CHICAGO CHICAGO ‒ A NEW LOST COST COUNTRY!
  3. 3. Feb 18, 2014 Rev 7-3 © 2002-2014 David R. Eshleman. All Rights Reserved Starting S.C. Global Manufacturing Communities C1 C2 C3 C4 C5 FORTUNE 1000 BRAND MANUFACTURERS Automotive Nuclear Components Electro-Mechanical Aircraft Mfg/MRO Aircraft Components Port Port Port Hub C6 Turbine/Turbo Mfg C7 Machinery STAGING Manufacturing & Sub-Ass’y Supplier Supplier Supplier Supplier Supplier Supplier GTC Global Trade Center 3 Rapid Innovation for More Efficient US Manufacturing ‒ SOUTH CAROLINA SITE ...Frugal Innovation for Global Exports NEW INDUSTRIAL COMMUNITY CAMPUS ... PORT OF CHARLESTON & SUPPLY CHAIN MGT
  4. 4. Oct 20, 2014 Rev 7-5 © 2002-2014 David R. Eshleman. All Rights Reserved Getting Industrial Communities Going NEEDS: CORE TEAM with broad/deep industry knowledge creates 1st campus SUPPLY CHAIN TEAM creates more efficient campus supply chain matrix FINANCE TEAM assembles and manages campus land assets TASKS: ü  ENGAGE APPROPRIATE FORTUNE 500 MANUFACTURERS ü  IDENTIFY SUPPLIERS ü  MATCH LAND TO FORTUNE 500 COMPANY AND SUPPLIERS ü  EXECUTE DEVELOPMENT AND FINANCIAL STRATEGY ü  OPEN FOR BUSINESS 4
  5. 5. Why this is Important Source: US Department of Commerce, Bureau of Economic Analysis (BEA). Nucor Corporation Presentation, World Affairs Council of Charlotte, Dec 1, 2010 45% Drop Feb 18, 2014 Rev 7-3 5 U.S. Manufacturing - % of Gross Domestic Product Chart courtesy of Nucor Corporation Ø  In 1974 U.S. Manufacturing was 27% of GDP Ø  In last 10 years manufacturing lost 6 million jobs
  6. 6. 6 Job Losses In U.S. Recessions Source: Nucor Corporation Presentation, World Affairs Council of Charlotte, Dec1, 2010 Manufacturing Jobs Sped Recovery in 1974 Recession Current Recession Recoveries Made Longer by Increasing Job Losses 6Feb 18, 2014 Rev 7-3
  7. 7. Why this is Important 2000 2050 ASIA 3,700 Million 5,400 Million AFRICA 800 Million 1,846 Million EUROPE 730 Million 640 Million SOUTH AMERICA 350 Million 480 Million NORTH AMERICA 300 Million 450 Million Feb 18, 2014 Rev 7-3 © 2002-2014 David R. Eshleman. All Rights Reserved 7 Chart courtesy of Plante & Moran PLLC Export Opportunity for Manufacturing

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