Three Factors That Will Usher US Manufacturing Growth

In recent years, the U.S. government and American consumers have been pushing for domestic manufacturing as a way to boost the national economy. Major corporations are listening, and many are pledging to move production from overseas. If the manufacturing industry is to regain a percentage of its former strength, however, certain factors must be in place to make it a financially viable choice.

When it comes to manufacturing growth in the United States, nothing is possible without corporate support. Several major companies have already pledged to increase their presence in the American manufacturing industry, including Walmart, Apple and General Electric. Corporations are motivated by a number of factors, including consumer opinion, tax incentives and growth potential. Before smaller companies move stateside, a more established infrastructure must be developed to support modern manufacturing. As an added benefit, companies that move to domestic manufacturing will enjoy a more positive reputation with consumers and more political influence.

Technology is one of the most important factors in the resurgence of American manufacturing. For many businesses, the relatively high cost of labor in the United States as compared to countries like Pakistan and China presents an obstacle. In order to deal with higher costs, many companies will need to invest in technology that improves the production process.

In recognition of the need for more advanced systems, President Obama announced the creation of several manufacturing institutes. One of the institutes' goals is to help companies in the American manufacturing industry stay competitive in the global market by partnering manufacturing experts with scientists and engineers to design faster, more efficient systems. Automated machines, for example, are expected to replace a significant percentage of human labor, making it easy to create consistent quality and cut back on risk. And, with tools like 3-D printers, companies will be able to streamline the design and development process. With highly developed manufacturing technology, American companies will be able to produce more with fewer workers.

Foreign manufacturing markets also play a key role in U.S. manufacturing growth. China, for example, has long been a popular outsourcing option for American companies because of its low production costs. In recent years, salaries in China have been on the rise, cutting into the competitive advantage for foreign companies. In countries like Pakistan, questionable safety standards have come under fire by the national media. As a result, foreign companies are leaving to avoid a damaged reputation. For many companies in the domestic manufacturing industry, reshoring is the safest option in a turbulent global economy.

Although the U.S. manufacturing industry is on its way to becoming a more significant player in the national economy, it has a long road ahead. With a concerted effort from researchers, government bodies and corporations, however, the future of American manufacturing is bright.

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