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Jobs, Jobs, Jobs!! A Great Manufacturing America… Again?

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ManufacturingJobsUSA20171.jpg

Posted on Saturday, July 29, 2017
By: Dayco Inc.
Categories: Manufacturing  |  Made In America  |  Jobs  |  American Economy

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]

Tagged:Manufacturing, American Industry, Made In the USA, Made In America

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