American Manufacturing is Alive and Well
The American manufacturing industry has endured mixed reviews over the past few years, but it seems to finally be breaking free of the recession and making a real comeback. Over the past four months, U.S. manufacturing activity has persistently expanded, ending September with a PMI Index reading of 56.2. The economy as a whole is following suit, with steady gains thanks in part to the uptick in factory activity, hiring, production, and exports. But expanding activity isn’t the only good news for the manufacturing sector: More and more companies are bringing back production jobs from overseas.
“Reshoring” is finally starting to happen for American companies. According to a new study by the Boston Consulting Group, “More than half of executives at manufacturing companies with sales of more than $1 billion plan to return some production to the United States from China or are considering it,” writes Nelson D. Schwartz of the New York Times. Large businesses who previously took their production to countries like China and Taiwan for cheaper labor are now bringing them back for a multitude of reasons:
-Labor costs are increasing overseas
-Energy costs are going down in the U.S.
-“Made in America” is gaining ground as a favorable quality
-Quality of goods produced overseas is decreasing
-Big benefits of having production and design facilities under one roof
-Shipping costs are increasing
These reasons alone are prompting many executives to bring production back to the U.S. and provide more Americans with steady and rewarding manufacturing jobs. The medical manufacturing industry alone has seen enormous growth over the past few years, with innovations and new technology driving expansion. American medical manufacturing is second to none in terms of quality and advancements, making the U.S. the obvious leader in the medical device industry.