The American manufacturing industry
has been the foundation, core, spine, and heartbeat of the USA economy since
the early 1900s. Bringing jobs back to this industry is paramount to economic resurgence
and vitality in America.
Reports show that 92% of all goods sold in the United States
in 1960’s were Made in America. Following the 2008 recession, this number has
been in a downward spiral with manufacturers moving production facilities off
shore. As of March, 2017 approximately 40 percent of the products that we buy
are actually made in America. But the score is changing.
According to non-profit advocacy group the Reshoring
Initiative, the country added roughly as many jobs due to foreign
investment and reshoring as it lost to offshoring last year. Some of the
largest U.S.-based companies, likely for both public relations and practical
reasons, have begun building factories domestically for operations that would
likely have gone overseas a few years ago.
The Bureau of Labor Statistics reported that, for the first
time in decades, more manufacturing jobs came back to the
United States than left in 2016. In fact, there was a net gain of more than
25,000 jobs. That reflects a loss of about 50,000 jobs that left the country,
combined with a gain of about 77,000 jobs that returned to the U.S. or are a
result non-U.S. companies investing in U.S. factories, according to the report.
The bulk of reshored jobs — about 60 percent from 2010
through 2016 — came from China, according to the report. The same market forces
that pushed American jobs overseas are now bringing some of those jobs back.
Recently, with labor costs in places such as China rising 12% - 15% over the
past 15 years and higher international shipping costs, offshore production
presents less of a discount than it once did.
What’s Happening Now?
U.S. Job gains are up so far in 2017. The latest industry
figures show factory owners are feeling good. The ISM manufacturing index -- a
key measure of the industry's health -- showed manufacturing grew for the
eighth straight month, hitting 54.8% in April. Any reading above 50% means the
sector grew and anything below that mark means it shrunk.
Gains in consumer-discretionary and technology shares pushed
the U.S. stock market even further into record territory in July. With
second-quarter results in from nearly half of S&P 500 companies, the
broader index is poised to report earnings growth of 9% from the year-earlier
period, according to FactSet. That would build on gains from the first quarter,
when U.S. companies reported their fastest earnings growth in nearly six years.
During the first quarter of the year, consumer spending -
accounting for roughly 70 percent of all economic activity – grew at a faster
pace than earlier GDP estimates suggested. Spending on housing, health care and
financial services, including insurance, rose much higher than estimated.
Who’s Pushing the Dream:
The Trump Effect
Immediately following the election of President Trump, the
markets swelled with confidence – contrary to skeptic’s predictions – and
powerhouse manufacturing companies like Ford, General Motors, Carrier, Dow
Chemical, Trans-Lux, Sprint, and IBM all committed to reinvesting in the United
States and creating more jobs, jobs, jobs. President Trump announced plans to
create 25 million American jobs over the next decade through incentives to
businesses such as tax cuts and less regulation
With President Trump firmly focused on increasing the number
of manufacturing jobs in America, there are currently about 12.4 million US
manufacturing workers. That's up from the low point of 11.4 million in early
2010. Through the first six months of
2017, manufacturing added an average of 12,000 jobs per month according to the Bureau
of Labor Statistics. The manufacturing sector gained 1,000 jobs in June, according
to the latest employment data from the Labor Department.
Latest
Contributors: Walmart, Inc.
On July 26, 2017 Walmart Inc. met with government and
business leaders in Washington to unveil a plan to spur growth in domestic
manufacturing efforts that company executives say will create an estimated 1.5
million new jobs in the United States. The meeting included a discussion with
key individuals on both sides of the aisle about the biggest challenges the
U.S. manufacturing sector currently faces.
The Walmart-backed plan calls for the elimination of
so-called “policy barriers” that officials say are impeding growth in the
domestic manufacturing sector. The road map identifies four major obstacles --
a lack of qualified workers, excessive government regulation, dated tax and
trade agreements and a lack of coordination among suppliers -- and calls on
specific government and business entities to act together to address them.
Latest
Contributors: Corning, Inc.
On July 20, 2017 Corning Inc. will invest $500 million and
create 1,000 new U.S.-based jobs focused on manufacturing a new kind of glass
for storing injectable drugs as part of President Donald Trump’s “Made in
America” initiative, the company said recently. Corning said its “Valor Glass”
product, developed in collaboration with pharmaceutical giants Pfizer and Merck,
is more damage-resistant and improves the durability of chemicals. The product
will be used to craft vials and cartridges for medicine.
Latest
Contributors: Foxconn Technology Group
Foxconn Technology Group, a multinational electronics
contract manufacturing company headquartered in China, on July 26, 2017
pledged to invest $10 billion to build a display panel plant in Wisconsin
that could employ up to 13,000 workers and draw up to $3 billion in subsidies
from state taxpayers. The factory project would involve a virtual village,
with housing, stores and service businesses spread over at least 1,000 acres,
according to interviews. The plant would produce liquid crystal display
panels used in computer screens, televisions and the dashboards of cars.
The Wrap Up
The Consumer Confidence Index rose to a 16-year high in July,
hitting the 121.1 mark. More Americans are pleased by current conditions and
more hopeful about the future than have been for many years. Putting Americans
back to work and getting them off of Welfare and food stamps is paramount to
economic resurgence and vitality in America. The manufacturing industry can do
that very thing. With strong government support, and industrial commitment, we can and
will have a great manufacturing America again!
[sources: Fox News, USA Today, Reshoring Initiative, Bureau of Labor Statistics]