Randy Altschuler, CEO of Xometry, wrote his op-ed for The Hill when he felt the White House missed an opportunity to focus on a vital part of the industry that involves low-volume manufacturing. Whereas President Donald Trump's manufacturing council comprises leaders from Fortune 500 companies that take jobs overseas, smaller manufacturers keep jobs on American soil.
Economic Impact
Trump held a meeting of manufacturing minds in Boein's North Carolina plant as part of a White House initiative to bring more manufacturing jobs to America. Altschuler believes Trump ignored smaller manufacturers simply because Trump thinks big and wants Americans to see highly recognizable names, like Boeing or Ford, in the headlines. The CEO believes Trump should include smaller manufacturers that once held much more clout in the United States.
While larger manufacturers are important, economic experts cannot overstate the importance of low-volume manufacturing in the United States. These companies create a $60 billion sector through small- and mid-size companies that hire dozens, rather than hundreds or thousands, of employees. Manufacturers of this size use traditional machine shops, 3-D printing and everything in between, including high-tech production lines and automation, to make between 50 and 100,000 pieces per production run.
Advantages
Low-volume manufacturing adds value to America by accomplishing several things. Lower production runs mean these companies can shift production very quickly from one product to the next. There's less down time and faster turnaround times for small orders. High-tech 3-D printers allow manufacturers to custom make orders for customers in whatever volumes they need.
Low-volume manufacturing often employs smaller supply chains sourced in the United States. This prevents any possible import issues that may arise at ports or border crossings. Locally sourced items mean raw materials are usually one day or less away by truck, and this saves staff time when awaiting supplies.
Smaller volumes also mean better quality control for these firms. Workers at low-volume manufacturing plants combine craftsmanship and technical skill while running AutoCAD, CNC machines and 3-D printers to create items on the spot. These employees typically adapt to market forces more quickly than larger competitors. Meanwhile, smaller manufacturers also adopt newer technologies more readily than larger companies because it requires lower overall investment for smaller shops compared to an entire factory.
More Government Help for Smaller Firms
One disadvantage that smaller manufacturers have is that they bring in less revenue. They don't flex the same financial clout as the likes of General Electric, McDonnell Douglas or Chevrolet. However, these firms create a niche in the American economy that creates jobs, sales tax revenue, income tax revenue and stability for generations of America going back several decades.
Low-volume manufacturing may represent a relatively small sector of the overall manufacturing picture, but these companies need support from the government just as much as the big guys. Advanced training opportunities and less government regulations can be a part of the solution for smaller manufacturers.
Photo courtesy of Karl-Ludwig Poggemann at Flickr.com
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