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American Manufacturing Is ExpandingIt’s possible that you have heard that there is no future for manufacturing in the US. You may have heard things like this. “If a Smartphone was made here in the US, it would cost as much as a car.” And while the real cost to produce a product in the United States is more than the artificial price that it costs to produce something in China, the cost structure really isn’t that far off. Prices will need to adjust but not as radically as some might make you think. Some of you may be thinking that if you can’t buy cheap products from China, that’s not a big deal, you can simply buy from some other cheap producer in the asian market or other cheap part of the world. Perhaps Vietnam, Malaysia, or even India. But the fall of China just so happens to coincide with another, larger change to the global market. The fall of Globalization. What some people don’t recognize is, like most things the United States has done... We created and supported globalization as part of our National Defense Initiative. And while it was important during the cold war, it no longer serves us. The military, the market, the environmentalists, and the politicians no longer have an appetite to fund and support such a system. China became an economic power on the back of this system of globalization. But that system is being shut down. China is not just failing because of internal mismanagement, they are failing because the economic backbone that allowed them to be a player is changing at a very basic level. And as much as the next country would love to line up to become the next manufacturing hub for the United States... They simply won’t be able to without globalization. What’s the alternative? Making the goods we need as close to its final destination as possible... in short, made here in America. |
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What’s Next?The US does not have the same capacity that it did back in the ’50s, the ’70s or even the ’90s. And today, we do not have the capacity to bring it all back overnight... And all indications are that we are going to need to. We are working hard to build back that infrastructure, but that takes time. It takes time to build buildings, to train people, and to get equipment up and running. But in the meantime, there is only going to be so much capacity available. And if you and your company want to tap into that capacity it is going to take two things.
Now there are some really smart people out there who have already started moving production back to the US and built a solid relationship with Americain Manufactures. Companies like Apple who stated moving things all the way back in 2012 Forbes.com Another example is GE who started bringing back manufacturing back in 2016. Not to mention US Steel, Nucor Intel, Lockheed Martin and on and on. So if you are interested in being at the front of this wave, your window is quickly closing. |
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Your To Do ListSo, if you are still manufacturing things overseas, of heaven forbid in China, you need to start getting out of there, immediately. There will be a day in the not too distant future where we place an order for goods, and they just don’t come. There won’t be a lot of warning, and there certainly won’t be any refunds. Your Money, Your Tooling, and your supply chain will simply be gone. Some of you are not going to believe this and just continue on as normal and I really do hope the best for you. For those of you who want to be a little more proactive, You really need to start shifting your supply chain right now. Book a meeting today Book A Meeting > |
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