It’s a common concern for people thinking about manufacturing: the worry that American manufacturing isn’t a safe bet because all of our manufacturing jobs are being outsourced around the globe. But the truth is, American manufacturing is a safe bet, for a number of reasons. We’re going to go over a few with you today.
Here are four reasons that American manufacturing is actually a stable industry worthy of investing time in:
- We’re experiencing a ‘Made in the U.S.A. revolution:’ Companies are starting to realize the benefits of ‘Made in the U.S.A.’ Companies like Motorola, Apple, and Lenovo, are all opening up new factories in America. As companies continue to realize the quality and value of products made here at home, we expect that they’ll continue to reshore jobs back home.
- Labor costs are far less significant now than they used to be: According to Forbes, “as production has increased with declining employment, labor is a smaller fraction of total costs than ever before. Wages and salaries consumed 17 percent of sales just a decade ago; now they are only 11 percent of sales. This may be disappointing news for some workers, but it indicates that labor costs are not the greatest factor in production decisions.” Labor in China isn’t as cheap as it used to be, and companies now are willing to take the hit to have their products made here.
- The U.S. manufacturing industry is an innovation leader: New innovations like 3D printing have the potential to revolutionize the American manufacturing sector, and the U.S. has recently been at the forefront of new, technical manufacturing. In fact, high-tech manufacturing is seeing a decent resurgence in America, a good sign of things to come.
- Manufacturing careers are a great way around student debt: For high school students or other young adults who don’t want to be swamped down with student loan debt, careers in manufacturing are a great option. Many manufacturers are willing to pay students to go to trade school, and salaries after graduation are highly competitive. Careers in manufacturing are a great way around what some assume to be a certain future of student debt.
The days of American companies outsourcing their labor to other countries are starting to fade, and the American manufacturing sector is one of the most technically advanced of its kind in the world. It’s a truly safe bet, and one that we’re counting on, too.
What’re your thoughts on American manufacturing? Are you convinced that we’re really starting to become the tip of the spear in the manufacturing world? Let us know your thoughts in the comments or on Twitter.