The recent rise in natural gas production from shale deposits has caused an energy boom that's affecting the job market in positive ways. Manufacturing companies in particular are seeing a renaissance of sorts, with December 2013 showing the second-fastest growth in over two years. But it's not just cheaper energy costs spurring the increase in jobs; the federal government has had a hand in getting American manufacturers to bring jobs back to the US.
In his annual State of the Union address in 2012, President Obama outlined his plan to help American manufacturers begin "insourcing" jobs. This means that the federal government would be rewarding corporations for bringing jobs back to the US that had previously been outsourced. In an effort to cut costs, many manufacturing companies had been shipping American manufacturing jobs to countries with cheaper labor, including China and India. Although wages have gone up in these countries in recent years, companies were still slow to bring those jobs back to the United States. Now, that has changed with the energy boom and the enticement of incentives for insourcing previously outsourced jobs. The executives of manufacturing companies, buoyed by the President's promise of tax breaks and lower energy costs, have begun to bring some of those jobs back to the US. This insourcing trend has reinvigorated the industry, even as other countries, including both France and China, show signs of struggle in their respective manufacturing sectors.
In addition to tax breaks and other financial incentives, the government is also supporting manufacturing by investing in technology that will increase efficiency and productivity. For example, the National Robotics Initiative (NRI) aims to speed up the development of robotic technology to assist workers. The President also issued an executive order to spur investment in industrial energy efficiency that may save manufacturing companies as much as $100 billion in the next ten years. There are also initiatives to help the manufacturing sector become more sustainable, lessening overall environmental impact.
Huge conglomerates aren't the only manufacturing companies that the government is hoping to help. Small companies and individuals or groups hoping to start manufacturing businesses can also reap the benefits of the government's efforts. The US Small Business Administration (SBA) has a wealth of online resources available for aspiring manufacturers, including advice on writing a business plan, tips to woo investors, and information on financing options. Current small-business manufacturers can learn about grants and state financing programs among many other free resources.
There are many reasons for the uptick in manufacturing jobs, including cheaper energy and rising labor costs overseas. The US government has also had a hand in getting manufacturing companies to bring jobs back stateside. With tax breaks, investment in technology, and guidance for small businesses, the future continues to look bright for manufacturers.
(Photo courtesy of freedigitalphotos.net)
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