Before considering how to rebalance your global supply chain, first you should take a look at the changing landscape of manufacturing. Rising costs in China and shifting global economic forces are pressuring companies to reevaluate their global manufacturing strategies and consider reshoring operations and jobs back to America. But reshoring can be a lot trickier than you think. It takes careful consideration, planning and execution.
Before we can begin to plan and execute a successful reshoring strategy, we should take a look at what has happened globally in manufacturing and the direction of American manufacturing.
Our guest blogger, Tom Bonine, president of National Metal Fabricators has compiled some interesting facts.
Interesting Statistics and Facts about American Manufacturing
by Tom Bonine, president of National Metal Fabricators
In the U.S., the manufacturing industry is dynamic and ever changing. The industry has experienced many downs over the last decade, but there are positives that must be considered before the industry is ruled out.
Gross Domestic Product
The manufacturing industry in the U.S. contributes to the overall economy. According to the Manufacturing Institute, if the U.S. manufacturing industry were a country, it would be the eighth largest economy in the world. In 2012, American manufacturing contributed $2.03 trillion to the Gross Domestic Product (GDP). This amount is one-eighth of the total GDP of $16 trillion in 2012. U.S. manufacturers produce a higher volume than the full GDP of Canada, India, Russia or Korea.
While the industry lost many jobs during the first decade of the 21st century, January of 2010 brought a change to employment numbers. There were approximately 11.5 million manufacturing jobs in the U.S. in January of 2010. By April 2014, this number increased to 12.1 million. The industry has added or restored nearly 600,000 positions.
The positions in the manufacturing industry are not all low-paying assembly jobs. Skilled and educated workers are needed to meet the growing demands of technology. In the year 2000, approximately 14 percent of the manufacturing workforce had less than a high school education. In 2012, this number dropped to a little over 10 percent.
In 2000, 16.3 percent of the manufacturing workforce held a bachelor’s degree. This number increased to 19.9 percent in 2012. The rate of those holding a graduate or professional degree also rose during this period. It is expected that the need for more skilled workers will increase as the U.S. man