A manufacturing rebirth in the USA? With U.S. manufacturing jobs on the rise, the industry is ripe for a revival as companies favor producing products and components high in complexity at home.

AuthorOwens, Jeff
PositionIndustry Update

Mark Twain once famously observed that "reports of my death are greatly exaggerated." The same might be said for manufacturing in the United States. Considering the talk about the death of American manufacturing, recent reports indicate it is actually quite alive and, in many areas, thriving.

[ILLUSTRATION OMITTED]

In April, the Bureau of Labor Statistics reported that March manufacturing jobs continued to trend up (+17,000). Also, in March, the Department of Labor announced that more than 200,000 manufacturing jobs had been created since the previous March--the first yearly increase since 2000. This significant growth comes in part because market demand had fallen to such a low point during the recession. But it also demonstrated that there is still a stable and consistent need for a strong manufacturing sector in the U.S.

Analysis of December 2010 survey data from the American Society for Quality (ASQ) delivers another positive sign. The numbers show promise in both staffing and operational budget levels. Just 18 percent of respondents said they expect a pay freeze at their organizations during 2011, compared with 44.8 percent during 2010.

Of the 1,200 manufacturing professionals surveyed, only 18 percent predicted mandatory budget cuts in 2011, compared with 35.2 percent in 2010. In addition, 47 percent indicated their organizations will continue to search for and implement cost-savings processes, compared with 61.3 percent in 2010.

The top-performing sectors, which continue to show stability and growth, are manufacturers of products and components high in complexity. Products such as diesel engines, mining equipment or aerospace parts reflect stability in terms of staffing and production output. Bucking the overseas outsourcing trend, many of these labor- and equipment-intensive production lines are staying and growing in the U.S.

Why exactly are these sectors fueling a back-to-American-soil trend? Although overseas labor may he plentiful and less expensive, the skills needed for manufacturing these technically sophisticated products is difficult to find outside of the U.S.

The benefits of outsourcing off American soil just don't add up, once manufacturers analyze the combined costs for properly maintaining the manufacturing assets that are critical to making these products and the massive size of the products heavy equipment manufacturers need to ship.

Top-Performing Industries

It cannot be denied that continually improving production...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT