A recent US News article
declared the new presidential administration may have some difficulty revitalizing the manufacturing sector due to a number of obstacles: offshoring, lean manufacturing techniques, the development of robotics, cheap labor, U.S. tax codes, etc.
Should we stop trying?
Any economy cannot grow without a strong manufacturing backbone. A recent analytical study (cited by Forbes magazine
) posited recent manufacturing improvements as less important than they once were since manufacturing accounts for only 12% of our GDP vs the 31% it represented 50 years ago.
These flawed analytics undersell how important manufacturing is. Manufacturing contributed $2.2 trillion dollars to the U.S. economy in recent years. Many business leaders credit the various manufacturers they speak with on a day-to-day basis to their success. Every dollar spent on manufacturing yields $1.81 to the economy, helping drive the market into more lucrative, profitable times. Millions rely on manufacturing as a path to the middle class since with every employee, 4 more people are hired elsewhere. This field, which provides so much, is hampered by slow economic growth abroad, low commodity prices, and economic and political uncertainty.
All this has obstructed an area that can drive economic growth
, through machinery output and other means as it has for the past 200 years. With an increase in demand for raw materials, energy, construction, and services, we need enhanced technologies and methods in order to meet these demands. With more growth comes more production and amelioration elsewhere, such as technology and development with iPhone.
As you can see, manufacturing supports a $1.33 in output from other services - the largest multiplier of any field.
In conclusion, this sector can yield remarkable improvements for our economy in regards to jobs, profit, and advancement; by furnishing the assistance needed from both the government and private sector, we will begin to see the vast unavoidable revisions to our marketplace.