WHY U.S. MANUFACTURING’S RECOVERY IS VERY REAL, AND VERY IMPORTANT
Created at : Jul 9, 2014
If it seems like the majority of the conversation surrounding American manufacturing these days is about its comeback, that’s because the comeback is very real. Over 500,000 manufacturing jobs were added in the past three years, and outsourcing is so very, very out.
Instead, companies are reshoring—bringing business back to the U.S.—and “newshoring”—beginning from scratch here at home. And every day there’s another news story about huge companies such as Walmart and Apple investing in manufacturing on American soil. If you still have any doubts, consider this:
- According to this Time article, overseas workers are increasingly “demanding and getting bigger paychecks,” making American labor more competitive
- At the same time, any labor savings from overseas plants “evaporate when the goods are shipped thousands of miles”; meanwhile, U.S. factories “increasingly have access to cheap energy”
- This article states that “reshoring is not a fad—it’s a real supply-chain strategy” in which companies are successfully “tak[ing] advantage of the benefits of manufacturing in the U.S.”
These are just some of the solid reasons why manufacturing is seeing a major recovery. And as many reasons as there are for it happening, there are benefits to come from it. On an individual level, a company that manufactures at home sees improved quality, reduced cost of ownership, and the proven prestige that is Made in the USA.
Beyond that, the benefits to our country on the whole are enormous: Manufacturing is vital to our economy. It adds employment, providing good, successful, rewarding careers to skilled, hard working Americans. Furthermore, the aforementioned Time article points out that manufacturing makes up 67% of private-sector R&D spending and 30% of our productivity growth; therefore it’s projected that “every $1 of manufacturing activity returns $1.48 to the economy.” What all this means is that the industry is crucial to America’s success.
At Red River Precision Manufacturing, we are very proud to be an American manufacturer. We provide high-quality American-made goods to a variety of industries, and employ extremely hard working, dedicated, highly skilled men and women. We have always believed in our country’s manufacturing sector, and are thrilled to see it coming back with such great force.