Three Key Strategies To Drive American Manufacturing Reshoring
Randy Altschuler is CEO of Xometry , an AI-driven marketplace for on-demand manufacturing, enabling fast, flexible supply chain management. getty For more than three centuries, American manufacturing has served as the backbone of our global economy, weathering destabilizing wars, pandemics, a multitude of down economic cycles, trade imbalances and more. No sector of our economy has shown greater fortitude. According to the results of our recent poll conducted in partnership with Forbes and the international pollsters Zogby, 55% of the American CEOs we surveyed have plans to reshore their manufacturing operations. Of those, 95% say they’ll do so this year. That’s an incredible commitment by CEOs to continue building American manufacturing resilience. In fact, in 2022, 364,000 manufacturing jobs were brought back to the U.S. according to the Reshoring Initiative—that’s a 53% increase from 2021. In 2023, as many reshore their operations, CEOs are investing heavily in their shops by automating where they can, implementing enterprise-wide software to digitize their workflows and produce more goods and embracing emerging technologies like artificial intelligence to gain more insight and get a leg up on their competition. We know why CEOs are doing this, too—to build locally resilient supply chains to protect against future disruptions. That’s good news for the nearly 600,000 manufacturers across the U.S. , most of which are small or mid-sized operations. Their collective infrastructure is so robust and so deeply ingrained in their local communities that CEOs believe they can help solve most, if not all, of our supply chain concerns. MORE FOR YOU What’s Perfectly Round, Made Of Metal, And Keeping Russia From Replacing the 2,000 Tanks It’s Lost In Ukraine? DeSantis Disney Board Meeting Here s How Governor And His Appointees Could Change Disney World We’re also on the cusp of new and promising industries—from aerospace and electric vehicles to robotics and automation. And American manufacturers are once again leading the way. They’re forging ahead in new processes like additive manufacturing, and they’re bolstered by legislative victories like the Infrastructure Investment and Jobs Act, the Inflation Reduction Act and the CHIPS Act, all of which boost our economic and national security interests. Forbes Daily: Our best stories, exclusive reporting and Forbes perspectives on the day’s top news, plus the inside scoop on the world’s most important entrepreneurs. You may opt out any time. By signing up for this newsletter, you agree to the Terms and Conditions and Privacy Policy Despite Covid-19, inflationary pressures and international conflict, 95% of CEOs in our survey are optimistic about the future, underscoring that executives are stepping into the new year with a bit more confidence under their belt, and this bodes well for American manufacturing. As we move toward this shared future, it’s incumbent upon individual business leaders to take strategic action to fulfill its potential. 1. Advocate and facilitate public/private cooperation to drive critical investments in America’s small and mid-size manufacturers. Although U.S. shops are embracing digital-first tools to grow their businesses, many lack the best software to track orders, increase efficiency and expand their marketing efforts. What’s more, they also frequently lack much-needed capital to invest in the automation and robotics necessary to compete on a global scale. Price is still king in decision-making, and one good way for American manufacturers to drive down costs—and pursue reshoring efforts that “stick”—is to invest in the digital tools, big and small, that drive efficiency. Over the last several years, we’ve seen the adoption of significant legislation to spur reinvestment in the industry. Many business leaders have been evangelists in calling for Congress to lean in and support greater public/private cooperation and higher investment in our manufacturers to ensure more goods are made here. It’s an investment both in America and in our national security. 2. Rebrand “manufacturing” as the new buzzword in tech. Long gone are the days of manufacturing in dirty shops with antiquated equipment, run and staffed only by men. Our modern facilities are high-tech showcases of American ingenuity with innumerable opportunities for equitable career growth. At no other time in history has manufacturing offered so many entrepreneurial and leadership paths, and that’s especially true for women, veterans and people from underrepresented communities. Today, new processes like additive manufacturing and the increasing deployment of robotics and other automated tools are building the goods that will define our economy for a generation to come. As new opportunities appear over time, we must reimage manufacturing on par with Silicon Valley and become evangelists of the bright opportunities it offers. By […]
