The United States was once the globe's largest manufacturer, but it has since lost much of its manufacturing base. The road back to U.S. manufacturing growth is a bit rocky, but manufacturers, retailers and even politicians are working together to help the country's manufacturing base regain its strength.
Although many manufacturers are making efforts to increase manufacturing production in the United States, the road back to U.S. manufacturing is not easy. New manufacturing regulations, such as Environmental Protection Agency regulations to protect the environment, may limit the amount of plants that manufacturing companies can build, which can make setting up shop in the United States more difficult for U.S. manufacturers.
The U.S. is also suffering a manufacturing labor shortage, especially for the skilled workers required to operate and manage modern manufacturing equipment. These skilled workers require special training and often command a higher salary than manufacturers want to pay.
One way to help bring manufacturers back to the United States is to offer to pay the difference between domestic and international manufacturing costs. According to the Wall Street Journal, Walmart plans to take this action for bicycle manufacturing company Kent International Inc.
Walmart is currently Kent's biggest customer. As part of an initiative to purchase more products made in the United States, Walmart is offering to pay the difference between the wholesale costs of making Kent products in South Carolina vs. making the same products overseas. Making this level of commitment to U.S. manufacturing is one way to help bring more manufacturing back to the United States. If more retailers are willing to pay the difference, more manufacturers are likely to view U.S. manufacturing in a positive light, despite the extra costs of production.
Politicians are also working together to make the road easy for manufacturing companies. President Obama launched Advanced Manufacturing Partnership to help support manufacturers, technology and training. State governments are providing incentives for manufacturers to set up shop within their states. Even bipartisan members of Congress are working together to provide additional opportunities for U.S. manufacturers, such as the Revitalize American Manufacturing and Innovation Act that is currently working its way through the legislative process.
Ultimately, the decision to take the road home to the United States must be made by the individual manufacturing companies. Even with the incentives provided, each individual U.S. manufacturing company must decide for itself how much of its plants or operations should be located within the U.S. borders.
U.S. manufacturing is experiencing growth, and governments and retailers are working together with manufacturers to continue to bring manufacturing back to the United States. However, the road to U.S. manufacturing is long and potentially rocky, and each manufacturing company must decide whether or not to take the journey home.
Photo courtesy of digitalart at FreeDigitalPhotos.net
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