American manufacturing is a sexy term, or at least the government is hoping it will be to U.S-based businesses and domestic workers alike. Having somewhat of a second industrial revolution is what leaders are hoping will bring back millions of jobs to domestic workers and hopefully lead to a resurging GDP. While some are rejoicing, others are wondering what will become of their businesses in which they’ve invested millions into overseas infrastructure. The government hopes to pass legislature that benefits companies that produce domestically and punishes those who do internationally. But, what will America have to do to get ready if the future of manufacturing ends up in our own backyard?
Reasons Behind the Resurgence
The Border-Adjustment Tax was the first promise to bring back the glory days of American manufacturing. Despite not being passed, campaign promises and others alike have been circling through Washington that would still favor protectionism. This has led American companies that have factories abroad up in a frenzy. Monster Moto is a Mini motorcycle and go-kart maker moved their plant from China to the United States in hopes of this new wave of manufacturing. The CEO Alex Keechle has expressed concern but also hopes for the eventual benefits of domestic production. He states, “There’s just no way to source parts in America right now,” said Monster Moto “But by planting the flag here, we believe suppliers will follow.” That leads to another issue around bringing manufacturing back to America- is it ready?
What America Needs
Manufacturing in America only works as long as there is the infrastructure in place to accommodate its demands. There are a few kinks that would need to work out in the system first. One of them would be machinery. For instance, an American apparel company needs embroidery on a pair of jeans. Normally, they would send it out to China or India to complete the process. Now, it would be a matter of finding a factory equipped with the machinery to finish the garment. In addition, there might not be the workforce with the skills needed to complete the task. The new make American manufacturing great again sentiment will require the investment in technology but also in a workforce with different skills.
Some say glory days are not behind us in regards to U.S manufacturing, but their resurgence is not without obstacle. This could be a successful feat if industries can invest in the parts to make it work. Only the future will tell what is in store for this new wave of industrial revolution.
