US manufacturing has been buoyed by a number of trends that contributed to a successful 2013. These trends should persist into 2014 and determine the manufacturing industry's growth over the long term. The American manufacturing sector owes much of its success to the comeback of US automakers, a citywide push to boost US exports, and the implementation of 3-D printers. Knowing what's driving growth will help you discover where job opportunities lie and the skills you need to achieve career longevity in manufacturing.
Unsurprisingly, the state of US manufacturing relies heavily on one of the biggest American staples—the automobile. In 2013, the auto industry experienced an 8 percent growth over the previous year, churning out millions of units from its US factories and outpacing new housing developments in sales. Auto experts predict this growth will continue into 2014, which will help sustain the automakers' positive influence on the American manufacturing industry's growth. Both GM and Ford expect to introduce over a dozen new and updated vehicles in 2014. In preparation of high output, GM announced plans to shore up five of its US-based factories, while Ford is carving out five thousand new positions for US employees.
Global demand for American exports is also leading the manufacturing industry's growth in the US. In fact, some reports suggest that by 2020, the US could appropriate more than $100 billion of yearly exports from other countries, paving the way for five million new jobs in manufacturing and other industries. This commitment to increasing US exports is happening on the local level, with manufacturers in both small cities and key metropolitan areas positioning themselves as global providers of automotive parts, pharmaceuticals, and other high-demand goods. Domestic demand for US-manufactured goods is also fueling the manufacturing industry's growth. Apparel and technology companies, among others, are responding to lower labor costs and consumer demand by bringing manufacturing back to US soil.
Manufacturers anticipate that technological innovation will play a key role in the American manufacturing industry's growth. Specifically, 3-D printers spurred a manufacturing technique, known as additive manufacturing, that has been used in preproduction capacities since the 1980s. Now, these printers are advanced enough to produce limited runs of finished products, and while mass production isn't feasible at present, they help optimize the existing manufacturing process by reducing waste and accelerating a product's launch. Over forty thousand industrial and personal 3-D printers exist in the US; they have the potential to dramatically cut labor costs and to help the US industry remain competitive in a global marketplace where manufacturing powerhouses, such as China, are struggling to maintain dominance.
The manufacturing index—determined by the Institute for Supply Management—dropped to 51.3 in January, representing more than a five-point reduction from the previous month. On paper, the difference seems steep, but these three trends paint a clearer—and more positive—picture of the long-term viability of the manufacturing industry's growth. Your survival largely depends on your ability to adapt to them, whether it means trying your hands at auto manufacturing, relocating to an export-friendly city, or learning about advanced manufacturing processes.
(Photo courtesy of freedigitalphotos.net)
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