There are many trends that have come about over the past few years that have elevated manufacturing options in the United States. For many years, offshoring manufacturing operations was a popular option. While innovation has been strong in the U.S., the production and manufacturing operations were sent overseas where labor costs were lower. Today, there is a movement to keep production in the U.S., thereby keeping global businesses in the U.S., and it’s being driven by these trends:
Robotics
Manufacturing operation costs are decreasing thanks to highly sophisticated robotics. Robots are capable of doing work at a fraction of the cost of offshoring and eliminate problems associated with varying labor costs. They improve productivity by completing work in less time and because they are connected, they communicate data quickly allowing management to make swift changes as needed. In addition, robots are making the shop floor a safer place since less machinery needs to be operated manually.
Industrial Internet of Things
The industrial internet of things (IIoT) is the integration of machinery, shipments, infrastructure, etc. with networked sensors and software. When everything is connected, managers have access to all production environment data in real time. The data can be used to make accurate predictions and results in a more efficient process allowing manufacturers to find new business models and revenue streams.
Additive Manufacturing
Companies no longer need to invest hundreds of thousands of dollars in order to build one single product. Additive manufacturing, such as 3-D printing, allows companies to make products as needed while saving money and reducing production time. This is a good thing, especially if you want to keep manufacturing operations in the United States!
Focus on Time to Market
If manufacturers are catering to a U.S. market, it makes logistical and financial sense to keep the manufacturing operation stateside. It means that ideas can be developed and products can get to market much more quickly. This is becoming increasingly important as the manufacturing landscape becomes more competitive and companies are looking to have their products distributed in the U.S. as quickly as possible.
While plenty of manufacturers continue to offshore, there is a growing trend to keep manufacturing operations within the U.S. This is especially true now that labor costs overseas continue to increase. It may soon no longer make financial sense to send manufacturing work abroad.