U.S. Manufacturing Shaping Up Due to Trends
U.S. Manufacturing has been seeing upward trends in markets domestically for the past several years. Due to trends like:
- Capital investments in new production capabilities
- “Smart” Technology
- The manufacturer’s adoption of data communication and information standards capabilities
Over the last decade, U.S. manufacturing has been trying to keep up with the constant evolving of standards for product quality and customer satisfaction to stay globally competitive. Even though we are seeing manufacturing increasing here in the U.S., we are still constantly evolving our standards with the trends.
- The trade barriers being eliminated created access to foreign markets for U.S. manufacturing. With that, some businesses realized the cost savings in outsourcing their production activities.
- With globalization opening up the idea of outsourcing, businesses started to go over seas for significant cost saving. However, with rising cost for labor overseas and the new development of technology, businesses are starting to bring their work back to the U.S.
- Before the rising labor costs in foreign nations, companies would turn to places like China to outsource their products. Now with the standards of living increasing in places like China, the labor costs are going up. So now it’s becoming more practical to bring jobs back home since labor costs are rising and our skill levels are much higher.
With the reshoring of manufacturing operations, production and delivery costs will decrease, giving the manufactures the ability to produce more. This along with improving technology, quality and communication, the U.S. will begin to bring back business and stay competitive.
For full article and picture credit: http://foundrymag.com/