How to create American jobs by returning to the US the consumer packaging line of electronics industry products,

How to create American jobs by returning to the US the consumer packaging line of electronics industry products, and in the process reducing the accompany volume of solid waste related to the industry By: Cesar Bogadi - July 4th, 2011 Ever since outsourcing manufacturing became a way to lower production costs and increase productivity by using low-cost labor through globalizationfirst to Mexico and then to Southern AsiaAmericas major manufacturing companies have taken advantage of the benefits of global economic opportunities to grow their margins and become more competitive, in particular in the IT industry. As a result of outsourced manufacturing, between 2000 and 2010, the number of manufacturing jobs in the United States declined by 34 percent a loss of more than six million jobsand over 42,000 manufacturing facilities went out of business, some of them due to the recent financial global crisis of 2008, and the majority due to cost-effective opportunities to be found abroad, especially in China and Southern Asia. On March 1 2010, at an MIT roundtable discussion titled The Future of Manufacturing Advanced Technologies, more than a dozen of the Institutes faculty shared converging ideas about how to reinvigorate Americas goods producing businesses. At that MITs discussion cast specific issues of manufacturing in the light of broad economic considerations. To recover from the current economic downturn, it has been estimated that we need to create on the order of 17 million to 20 million new jobs in the coming decade, noted Susan Hockfield President of the Institute in her opening remarks at the event, which was co-sponsored by the Council on Competitiveness, an industry group. And its very hard to imagine where those jobs are going to come from unless we seriously get busy reinventing manufacturing. That question should be of great concern to scientists and engineers 64 percent of whom, Hockfield noted, are employed in the manufacturing sector. Hockfield also directly addressed the commonly held notion that the United States cannot compete in manufacturing against low-wage countries, citing the success of Japan and Germany, both of which feature trade surpluses and high wages. I take this as positive proof that building a strong advanced manufacturing sector is not impossible, but very much worth pursuing, Hockfield said. In addition to new business practices and continued strength in education, Hockfield added, A key hope for progress lies in tapping unprecedented new manufacturing technologies. (Peter Dizikes, MIT News Office, March 2010) As sample of such of American manufacturing reality, on October 2010 Dell Computer announced the opening of their second new computer manufacturing facility in China, with production capacity of 24 million units per year.

.Cesar Bogadi July 4th, 2011 | Confidential

How to create American jobs by returning to the US the consumer packaging line of electronics industry products,

The total labor force working in China to manufacture Apple computer products is estimated at over 300,000 Chinese workers. Another major contributor that has facilitated globalization and outsourcing of manufacturing has been the rapid development of container shipping systems based on: The adoption of standard container sizes in the mid- 1960s Industry players awareness of the advantages and cost savings resulting from faster vessel turnaround times in ports The reduction in the level of damages and associated insurance fees The integration with inland transport modes such as trucks, barges and trains.

The large-scale adoption of containers in combination with the globalization process drove worldwide container port throughput from 36 million TEU in 1980 to 237 million TEUi in 2000 and 545 million TEU in 2010. Around 60% of the world port throughput involved laden containers, about 20% are empty containers. The remainder consists of transshipped containers. The world container traffic, the absolute number of containers being carried by sea, has grown from 28.7 million TEU in 1990 to 152 million TEU in 2008, implying an average annual increase of 9.5%. Production and trade imbalances in the global economy are reflected in physical flows and transport rates. Containerized flows are almost never balanced, implying that empty containers must be repositioned to locations where export cargo is available. For the United States, the imbalance with Asia peaked to more than 10 million TEU in 2006/2007 with containerized freight flows from Asia to the US three times as voluminous as containerized flows from the United States to Asia. Still, on a global scale the empty incidence in port throughput has remained rather stable at around 20%. The more imbalanced the traffic, the more containerized capacities are required. This also leaves opportunities to take advantage of empty backhauls and the lower freight rates they imply. (Rodriguez J-P, 2011). While the dynamic of containerization is a well-researched theme by academics, consultants and the wider business community, research into the packaging of cargo carried by containers appears to be under-represented. Initiatives to increase the product-container-shipping ratio as an opportunity to reduce shipping cost were initially bypassed, particularly for the electronic goods. In some cases new technology developed smaller and more powerful computers and IT products which improved the product-container-shipping ratio. However, the electronic goods industry still is manufactured overseas and they pack their products with the retail or final consumer package, which are then shipped directly to warehouses and retailers all over the world. This practice of bringing or importing the consumer package of the IT products from overseas generates a huge volume of solid waste (garbage) to consumers, communities and local governments for disposal. The final high cost of this practice is paid by all of us, and not by the IT products manufacturers.
.Cesar Bogadi July 4th, 2011 | Confidential

How to create American jobs by returning to the US the consumer packaging line of electronics industry products,

In 1991, the German government realized that the public funds they were expending in order to dispose of solid waste were higher than the amount they were spending on education or health care. As a result, in 1993 the German congress passed the Packaging law, which imposed a Green Tax on every single non-reusable package. Do we know how much money of public funds is spent in the US to dispose solid waste compare to whats spent on education or health care? The concept of importing electronic goods with the retail package still offers an opportunity to generate new jobs in America, and at the same time reduces the amount of solid waste material that comes with it, by using returnable and collapsible Bulkcontainerii inbound and sending them back flat outbound to be reused.

The Idea
Any production line needs a packaging section fully automatic, semi automatic or manualto pack and wrap their products. Manufacturing or assembly line products do not necessarily require the packaging line to be attached to their line. However, for many products and for the manufacturing process it is ideal to have the packaging line within the layout of the facility. What I am proposing is a radical way of re-framing that logic as follow: 1. Remove the retail packaging section of the production line from overseas factories and relocate back to US facilities. 2. Create new jobs and thus benefit from government incentives. 3. Improve the product-container-shipping ratio by using knock-down returnable and reusable Bulkcontainer shipping packages to pack multiple goods without the retail package. 4. Repack the goods in packages made with recyclable fiber in US facilities for the final consumer. 5. Develop a new standard for electronics retail packaging, to unify higher percentages of specified recycled cardboard, creating a unique exterior appearance for the design of the package, which allows final consumer and municipal authorities to identify its industry of origin. 6. Reduce the volume of industrys solid waste sent to the municipal land fields.

As a result: (benefit)
1. Create new US jobs in the following sectors: Retail packaging line Solid waste collection and recycling Cardboard box converting and printing
.Cesar Bogadi July 4th, 2011 | Confidential

How to create American jobs by returning to the US the consumer packaging line of electronics industry products,

2. 3.

4. 5. 6. 7.

8.

9. 10. 11.

Wooden crate manufacturing Transportation Reduce shipping costs by increasing product-container-shipping ratio. Have the retail packaging facilities in US, reactivates this portion of the manufacturing production chain line, at the same time, investing in R&D for smart packaging technology, more efficient and more productive, can be an area where the United State could re-establish a competitive advantage in manufacturing. Eliminate the waste generated from the shipping packaging by using Bulkcontainer. Use the imbalance trade of TEU between US and China to ship outbound the collapsed shipping packages at very low cost. Reduce the high volume of retail packaging that we are importing as solid waste generated by the IT products Industry. Increase the volume of recycled cardboard generated by the IT Industry by exploring and designing an IT industry-specific solid waste collection channel and recycling. These can be achieved by teaming with private solid waste management companies, paper/cardboard mills and federal and local governments, involving private industry in the life-cycle of their retail product packaging. Really closing the end-of-life cycle of IT products, convincing the industry to assume responsibility for the recycling of their products retail and shipping packaging. So far some IT companies are focusing on the design life cycle of their products, but not on their products package life cycle. Lobby Federal and local Governments to support industry/Government/Private Sector joint-ventures to invest in recycling facilities. Team out with the cardboard mills and box-making companies to increase productivity inhouse and not overseas. Get the jump on possible future legislation and regulations that might impose taxes on non-reusable or non-recyclable packages.

The targets (Potential Costumers)

The natural targets for this concept are the top 10 consumer electronics companies in CEAiiis membership (from a global revenue perspective: Dell, HP, LG Corp., Apple, Microsoft, Nokia, Panasonic, Philips, Samsung, Sony and Toshiba) which employ approximately two million people globally and had combined revenue of around $750 billion in 2009, according to public financial information. The secondary targets for the present idea are: the shipping container Industry, the recycling or solid waste industry; the American Forest & Paper Association; the Fiber Box Association, the Association of Independent Corrugated Converters, municipal waste managers, the Federal Government, etc.
.Cesar Bogadi July 4th, 2011 | Confidential

How to create American jobs by returning to the US the consumer packaging line of electronics industry products, Potential supporters of the concept are: local communities, the Electronic Industry Citizenship Coalition, Global Social Compliance Programme, and others.

The Needs
In order to develop the above idea into a presentable and documented proposition that results in a Business Plan, an enthusiastic, wealthy and entrepreneurial investor is needed to finance a serious R&D working team. The team will consist of no more than five full-time professional experts, and possible other part- timers or consultants, as part of the first phase of the project, for a period of no more than three (3) months. The required funding to be used for salaries, office rent, office furniture and computers, office supplies, purchase of industry reports, traveling, consultant services and other costs, is estimated at $250,000.00. One of the most important tasks of the R&D team will be to identify the potential economic benefit of this concept and develop its marketing path. Once Phase I of the plan is completed, Phase II will focus on project marketing, which would require additional funding.

The Government view

Weve launched an all-hands-on-deck effort between our brightest academic minds, some of our boldest business leaders, and our most dedicated public servants from science and technology agencies, all with one big goal, and that is a renaissance of American manufacturing. Throughout our history, our greatest breakthroughs have often come from partnerships just like this one. American innovation has always been sparked by individual scientists and entrepreneurs, often at universities like Carnegie Mellon or Georgia Tech or Berkeley or Stanford. But a lot of companies dont invest in early ideas because it wont pay off right away. And thats where government can step in. Thats how we ended up with some of the world-changing innovations that fueled our growth and prosperity and created countless jobs -- the mobile phone, the Internet, GPS, more than 150 drugs and vaccines over the last 40 years was all because we were able to, in strategic ways, bring people together and make some critical investments. Remarks of President Barak Obama when he visited Pittsburgh, Pennsylvania where he toured Carnegie Mellon Universitys National Robotics Engineering Center (NREC) to announced the launch of the Advanced Manufacturing Partnership (AMP), June 24, 20011. The economy tells us every day, business as usual is not enough anymore. Innovation, creativity, radicals ideas and strong financial support are needed to transform and improve everything we see around us and the way we do business.
.Cesar Bogadi July 4th, 2011 | Confidential

How to create American jobs by returning to the US the consumer packaging line of electronics industry products, Cesar Bogadi, PM Cell: 917-440-7682 Cebogadi@gmail.com Inventor: USA Patent # 5207343, Modular Knock-down packaging systems

TEU: Containership capacity is normally expressed in Twenty-foot Equivalent Units. Bulkcontainer: New term formed by combining Bulk shipping + Containerization shipping, and is used as a conceptual term of the idea.
ii iii

CEA: Consumer Electronics Association

.Cesar Bogadi July 4th, 2011 | Confidential