For about a year starting in June 2015, experts in the American manufacturing sector talked about whether manufacturers are rebounding from the recession to create a new renaissance. More products made in America might lead to more job creation, a more stable economy and better wages for workers. However, once economic reports came in at the start of 2016, the rosy picture from 2015 disappeared.
Elio Motors believes American manufacturing is on the cusp of a revival. Companies should take the initiative, with or without government assistance, to innovate, collaborate, and create more products made in America rather than overseas. The blog post cites several reasons for maintaining the momentum started by reshoring, automation and robotic technology.
The Brookings Institute reveals how American manufacturing affects the rest of the country. Innovative ideas that start with manufacturers go into the service sector. Companies can also consider how manufacturing affects the nation's health thanks to medical machines, wearable technology and devices that keep people alive.
American manufacturing isn't just about job creation; it's also about higher-paying jobs. People with the right education and skill sets earn higher wages than unskilled laborers. Manufacturers also drive economic stability and environmental sustainability. When companies show how to save the environment and go green, others follow suit. Going green makes economic sense, and it could lead to better sales.
The "Made in America" label also appeals to customers looking to support the U.S. economy, and they also expect higher-quality products from domestic manufacturers . The economic appeal of protecting the American economy and keeping jobs in the United States is not lost on consumers who see the "Made in America" logo on items in stores. Getting items from overseas is more than just a "feel good" issue.
Businesses must also consider cost factors when it comes to American manufacturing. Orders shipped from overseas take more time to get to market. Shipping costs are higher, too. When laborers start to make more money in foreign countries, the idea of going overseas to find lower-cost workers becomes less attractive to manufacturers.
Surveys and polls suggest that manufacturing is an important issue to many people. A whopping 86 percent of people surveyed by the Center for American Progress felt overseas manufacturing hurts the domestic economy and leads to unemployment. The sentiment is there, but manufacturers have yet to implement any strategies for keeping jobs on American soil.
Manufacturing shrank for six straight months in the latter part of 2015 and into 2016. Manufacturing actually dwindled to its lowest point since 2009 — the height of the economic recession — in December 2015. This occurred despite consumer confidence rising and the economy rebounding, which means manufacturing has become less of an important driver of economic activity in the United States.
American manufacturing must continue to find ways to improve. Innovations in the sector do more than just improve the economy; they improve the quality of life for everyone, and that alone should be enough motivation to keep manufacturing strong in America.
Photo courtesy of vectorolie at FreeDigitalPhotos.net
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