What is the Future of U.S. Manufacturing?

After several years of Coronavirus lockdowns and supply chain issues, it appears that industries are starting to become more stable, and production is ramping up to at least where it was in late 2019. Despite this resurgence, industrial manufacturing and related industries are seeing many changes as a direct effect of the pandemic, and the future of U.S. manufacturing has undoubtedly changed in the past few years.

The next decade holds much potential for the industry, with innovation, automation, and a focus on increasing productivity leading the way.

Read on to learn more about how the industry could change in the future 

STRONGER EMPHASIS ON R&D AND TECHNOLOGY  

In the first months of his presidency, Joe Biden announced the “Made in America” executive order, aimed at strengthening the U.S. economy through nearly $300 billion in investments towards advanced technology and R&D. This was paired with an initiative to create over 5 million jobs in manufacturing.  

Though these two things can seem at odds with one another, it has been found that automation in manufacturing feeds economic growth in the US, and creates more jobs through the development of new roles, something predicated by the Word Economic Forum a few years ago.  

CUTTING COSTS WITH AUTOMATION  

The advances in technology and machinery also allow for businesses to upgrade more economically and quicker than in previous years. Machines are cheaper, faster, and easier to install, which decreases downtime and increases productivity. Allowing more businesses access to streamlining their production through automation clears the way for new products and solutions to enter the market, another important part of economic growth.  

Additionally, turning to automation and industrial robots instead of cheaper overseas labor allows more companies to be competitive without having to outsource. This in itself could lead to higher robotic automation over the next decade and could pave the way for a U.S. manufacturing resurgence.  

INCREASED PRODUCTIVITY THROUGH AUTOMATION  

One obvious byproduct of automation is increased productivity. A McKinsey study predicts an increase in productivity and growth through automation, worldwide, from 0.8 to 1.4 % annually. This production growth positively impacts multiple aspects, from higher outputs, yielding higher margins, to higher wages for employees, and lower costs for customers. This combined outcome only positively affects the economy and workforce.  

As this barrier of cost for automation drops, and it becomes more accessible, the market should see more businesses turning to industrial automation on various scales. When this happens, the market will be able to see not only more innovative products produced on a larger and quicker scale, but the quality increasing with production speed.  

MORE MANUFACTURING JOBS  

Manufacturing, although not as much of a job supplier as it used to be, is still one of the leaders in employing workers, especially in middle-America. And experts expect this to continue, and even increase, as the industry bounces back from the pandemic.  

Manufacturing makes up the largest employer group in the U.S., and is one of the highest employers of adults with GEDs or high school degrees, that may not have a bachelor’s degree, which is currently half of the country. It’s important to not only provide jobs for those that may not have a college education, but encourage those that may not into productive and thriving positions, in such fields as manufacturing.  

AUTOMATION SOLUTIONS  

NRTC can help with automating and streamlining your business. We offer turkey solutions for manufacturing businesses, and provide production support ranging from basic to advanced. We can help design, build, engineer, and install a customized industrial work cell for your business, as well as help you troubleshoot any issues you might be having with your current line up, and find a solution that can work for you. We’re ready to help you improve your efficiency and productivity, and move you into the next decade up to par with the quick evolution of the industrial manufacturing industry. For more information, contact our team or learn more here.