August 1, 2022
U.S. Manufacturing Becoming Globally Competitive
Supply chain issues, inflation, and advanced automation are bringing manufacturing back to the states.
400,000 new jobs in the U.S. are predicted to be created due to reshoring, according to the Reshoring Initiative 2021 Data Report. The report also states that 1,800 companies are participating in the new wave of reshoring and the South, with Texas and Tennessee at the top, make up 56% of all new reshored jobs. This data showcases the effects of the pandemic and the Russia-Ukraine war.
Reasons Behind the Reshore
Last month we covered some of the reasoning behind the global reshoring efforts: inflation, supply chain, and quality control. However, there are other factors leading to the reshoring cause. “Made in the USA” products and automated, streamlined technology are other reasons for the reshoring push. Harry Moser, Founder and President of Reshoring Initiative, states, “Surveys show people prefer a made-in-the-USA product and if they can find it they will pay a little more for it… if you can get 10 percent more at retail for made in the USA, it alone will cover about 30 percent more in manufacturing costs.”
U.S. manufacturing is massively supported by U.S. Americans. The higher price of a domestically manufactured product often is purchased over a more inexpensive foreign manufactured product. While the cost of manufacturing is higher when produced within the states, our automation processes have become increasingly competitive, attracting companies back to the U.S. With 400,000 jobs expected to return to the states, “Made in the USA” stickers may be seen more frequently on the store shelves.
The Future
With these additional facilities providing hundreds of thousands of jobs back to the states, there is room for concern. The growing number of available jobs may not match up with available talent. According to The Manufacturing Institute and Deloitte, the United States could see a manufacturing skills gap of 2.1 million unfilled jobs by 2030. It is becoming increasingly smarter to consider a career within the manufacturing space. The demand for manufacturing professionals is expected to skyrocket and the supply will be needed.
If you are interested in a career in manufacturing or are looking to fill open positions within your company, do not hesitate to contact us. We are in the business of building companies and careers and are passionate about serving where we can. If you are looking for career advice or would like a consultation call, one of our experienced recruiters would be happy to talk with you today.