Raw Materials for Reshoring
Electric Cars Love North Carolina
HermitCrab does not want to be in the electric vehicle business. That would be a pretty big leap! But it's interesting to note that some of the highest-grade lithium anywhere in the world is located in the western part of North Carolina, from Gaston County all the way to deep in the western Carolina mountains. If you decided to locate an electric vehicle battery plant strictly on the basis of the availability of raw materials, such as high-grade lithium, North Carolina would be an easy choice.
HermitCrab Products Raw Material Needs
The raw material needs for potential HermitCrab products are far more mundane, and have been used for numerous products in the past. Today's class will focus on product sets that can and should be produced in the Carolinas and Georgia in large part because of the ready availability of the raw materials needed to support the manufacturing process. Even a couple of raw material options that may not be highly available in the HermitCrab territory are still easy to come by in the greater Southeast region.
Some examples of target raw materials for HermitCrab include:
Wood, especially pine
Cotton
Pulp and Paper
Kaolin and Clay Deposits
Plastics
Wood Products
The Southeast US is home to several of the largest producers of softwood in the US, especially Georgia at number 4 with 3.5 billion board feet of lumber produced.(1) There is ample wood to supply the manufacturing needs of HermitCrab to make hundreds of different wood-oriented products. Taken together, the three-state region would be the largest producer of softwoods, and possess the largest total acreage of harvestable timberland. A dozen examples of currently imported products made from wood include:
Picture Frames: Lightweight, easy to craft, and often used for art and photos.
Art Canvas Frames: The frame supports the canvas and is often made from resilient softwood.
Furniture and Replacement Parts: Softwoods are popular for items like tables, chairs, and shelves. many common furniture replacement parts (feet, bracing, cabinet fronts) are also made and sold in the aftermarket.
Wooden Toys: Softwoods are safe and easy to carve into toys for kids.
Decorative Trays: wooden trays with simple hardware can be produced rapidly in the Southeast.
Bookcases: Softwoods make for affordable and attractive shelving units.
Tool Handles: Many hand tools have handles made from softwoods due to their shock absorption qualities.
Craft Supplies: Wooden balls, blocks, dowels, and sheets are commonly sold in arts and craft stores.
Garden Stakes: Used in gardening for plant support, made from durable yet lightweight softwoods.
Cabinetry: Cabinets in homes are often crafted from softwood due to cost-effectiveness.
Kitchenware: Including items like serving bowls, cutting boards, and utensils.
Pencils: Softwoods are used for the outer casing of pencils.
Cotton
Similar to softwood, the Carolina and Georgia, taken together, would be the largest cotton-producing state in the country, with 3.5 million bales produced in 2023(2). Unlike softwoods, which take 35-40 years to reach harvestable maturity, cotton production can be increased by rotating in cotton into the nest growing season if dictated by demand. Alternatively, if more cotton-based manufacturing returns to the US, we can always reduce our exports. The United States is the world’s largest exporter of cotton (almost 2.9 million metric tons)(3), the vast majority shipped to the apparel producing countries along the Pacific Rim(4) Bangladesh, Vietnam, and China, all in the name of cheaper t-shirts. HermitCrab will likely never attempt to reshore apparel – many have tried and failed, but examples of currently imported products made from cotton, which should be considered for reshoring, include:
Towels: Cotton towels are known for their absorbency and softness.
Bed Sheets: Often made from cotton for comfort and breathability.
Curtains: Cotton curtains offer a soft texture and can be easily dyed.
Upholstery: Cotton is used as a covering fabric for furniture due to its durability.
Cotton Swabs, Balls and Pads: Used for makeup removal and medical purposes.
Napkins and Linen Tabletop Usage: Cotton napkins are reusable and soft.
Cleaning Cloths: Known for their ability to trap dust and dirt.
Rope: Cotton rope is used in crafts and for agricultural purposes.
Bookbinding: Cotton fibers can be used in the cover material.
Medical Gauze and Protective Masks: We have already forgotten Covid.
Canvas: Used in painting and also in creating bags or shoes.
Cotton Paper: High-quality paper with cotton fibers.
Pulp and Paper
Pulp and paper products is an interesting challenge for HermitCrab, primarily because the cost to get into the raw paper production business is extremely high from a physical plant perspective, but it’s also exasperating to walk through a Staples, Hallmark, or Office Depot and see one aisle after another of paper-based products with relatively low labor content that is made in China, which is (by far) the largest exporter of paper products in the world. Much of the paper and cardboard packaging consumed in the US is domestically produced, but a majority of end-consumer products purchased at the stores I just mentioned come from China. While HermitCrab’s mission is not to try to take market share from current US manufacturers, there’s hundreds of product types we can reshore, including the following examples:
Books and Notebooks: Printed pages bound together for reading or note-taking.
Specialty Papers: Used in various industries like filtration or electrical insulation.
Printer Paper: Standard sizes paper for printers and copying. Why do we import this!?
Cardboard Boxes: Used for packaging and shipping.
Envelopes: Used for mailing letters and documents.
Wrapping Paper: Used for gift wrapping.
Calendars: Printed pages showing days, weeks, and months.
Magazines: Periodicals with articles, stories, and images.
Greeting Cards: Used for conveying messages on special occasions.
Posters: Large, printed materials for advertisement or decoration.
Board Games: 99% of board games ($2Bn business) made in China.
Paper Plates & Cups: Disposable plates & cups used for serving food.
Kaolin and Clay (Ceramics)
Have you ever been to Sandersville, Georgia? Sandersville is known as the “Kaolin Capital of the World.” One of Georgia's most important minerals, kaolin is a white, alumina-silicate clay used in hundreds of products ranging from paper to cosmetics to the nose cones of rockets.(5) Georgia is the largest producer of Kaolin and Clay Products, and North and South Carolina also sit in the top five states for clay production. The United States is the largest global exporter of raw clay and kaolin, usually sent to countries that then convert the raw materials into products that end up on our shelves. 50 years ago, the United States produced virtually all of its own dinnerware, except for the “fine China” from England. Today, our dinnerware and decorative ceramic industry is nearly extinct, except for a few niche providers of specialized serving ware. Nothing that you buy in Target or Walmart, nor anything you eat off in restaurants, is made in America anymore. Yet, we sit on all the raw materials we need to make the products again in the US. Consider the following:
Porcelain and Ceramic Dinnerware: Dishes and serving pieces are often used for eating at home or in restaurants.
Sanitaryware: Products like toilets, sinks, and bathtubs are typically made from high-quality clay materials for their excellent water resistance.
Ceramic Mugs: Common household item favored for their ability to retain heat.
Flower Pots: Commonly made from clay due to its breathability, which helps regulate moisture for plant roots.
Porcelain Vases: Decorative items that benefit from the fine, smooth texture of porcelain.
Ceramic Cookware: Known for even heat distribution and often favored as a healthier cooking option compared to non-stick coatings.
Ceramic Knives: These are valued for their sharpness and resistance to stain and rust.
Ceramic Tiles for Swimming Pools or Countertops: This was included because there is significant importing of tile despite a robust US-based manufacturing capability.
Porcelain Tiles for Countertops: Appreciated for their strength and resistance to staining and scratching.
Ceramic Sculptures and Decorative Products: Artistic or decorative products ranging from sculptures to piggy banks.
Porcelain Lamps: Base components often made from porcelain for their decorative quality and heat resistance.
Clay Cookware (Tagines and Baking Dishes): Used for their natural heat retention properties and ability to enhance the flavor of food.
Plastics (Petroleum-based Products)
I still have hair – I am grateful every day when I look in the mirror and see that I have something to run a brush through. But every day I also get closer to pulling every hair out of my head because of the insanity of importing plastic products from China. This is the peak of the stupidity of offshoring policies and practices dating back to even before NAFTA and WTO. China (32%) and the rest of Asia account for over 50% of global plastic production, with most of the raw material (oil-based products) being imported from other countries.
The United States is a net energy exporter. We have more oil that we can consume in hundreds of years, with over 1.6 Trillion barrels of recoverable oil inside the areas of US control, nearly six times the proven reserves of Saudi Arabia. At current rates of consumption (which are currently flat due to rising alternative energy sources), we have enough oil to last 227 years.(6) We will figure out fission by then - can we stop with the fearmongering? Plastics are made from oil and natural gas (the natural gas capacity of the US is practically infinite), which are processed to create the resins used to melt into plastic shapes.
We also have thousands of plastic-making injection molding factories across the united states. The capacity is available, but many retailers take the easy (and maybe a few pennies cheaper) way out and just bring it in on containers from Asia. I can keep going, but need to wrap this up – let’s consider a dozen (there are thousands) plastic products made offshore that should be cost-competitively reshored to the US:
Toys - Including action figures, building blocks, and dolls.
Kitchen Utensils - Such as spatulas, cutting boards, and measuring cups.
Remote Controls and Computer Peripherals - Durable casings for electronic controls.
Plastic Chairs - Lightweight seating for indoor and outdoor use.
Planters - Pots for growing plants, available in various sizes.
Storage Containers (including Food) - Stackable boxes for organizing items.
Sporting Equipment - Components for items like helmets and shin guards.
Car Parts - Such as dashboards and bumpers.
Tool Handles - Ergonomic grips for tools like screwdrivers.
Bathroom Accessories - Items such as soap dishes and toothbrush holders.
Office Supplies - Portable items like staplers and pencil holders.
Pet Accessories - Bowls and toys designed for pets’ use.
Conclusion: The citizens of the United States seem to be waking up. Why are we buying products from countries that either don’t like us or hope to see America decline as a great nation? A self-sufficient US Manufacturing Sector is required to maintain our position as a global superpower. We foolishly gave away much of our manufacturing plant over the last 40-50 years, and we need to move a lot faster than that to recover it before it’s too late. There are 60 product categories listed above that we can make in the US without needing to important any raw materials from other countries – let’s get started!
Thank you for Reading! Today’s class could have taken another several pages because there’s so much to discuss, but we need to stay in our lane and keep the content within a 10-minute read! Tomorrow’s topic is Day 23: Consumer Demand: Growing consumer preferences for locally made products. As we see in today’s paper – most consumers are likely not aware that what they buy comes from outside the US. How can we change that? Check in tomorrow for your answer!
Thanks for reading,
The HermitCrab Team
Footnotes:
https://worldpopulationreview.com/state-rankings/lumber-production-by-state
https://www.statista.com/statistics/248776/top-10-us-states-for-cotton-production/
https://www.statista.com/statistics/191895/leading-cotton-exporting-countries/
https://www.statista.com/statistics/191896/leading-cotton-importing-countries/
https://www.rigzone.com/news/how_much_oil_and_gas_does_the_usa_have-16-may-2024-176766-article/
