SME, a nonprofit association of professionals, educators and students committed to promoting and supporting the manufacturing industry, says the US will reclaim its role as a global leader in manufacturing, largely spurred on by the Coronavirus pandemic.

The United States was once the world’s manufacturing powerhouse, but during the COVID-19 pandemic we were unable to produce the critical personal protection equipment (PPE) essential for combating the crisis.

We lost our manufacturing advantage when companies outsourced offshore to meet consumer and industrial demand for low-priced goods after World War 2. Fortunately, however, a positive localization trend since 2010 indicates an increasing rate of reshoring by U.S. companies and foreign direct investment (FDI) by foreign companies, peaking at 190,000 jobs per year in 2017.

This positive trend has been driven by rising Chinese wages, U.S. automation and lean efforts, and companies rethinking their sourcing metrics by using total cost of ownership (TCO) instead of FOB or FCA price or landed cost. A landed cost is the total charge associated with getting a shipment to its destination.

How do we get American manufacturing back? Lots of ways. Here are some, according to the article:

Consumers must seek out and demand products that are made in the U.S.
Retailers must make U.S.-made products more accessible to consumers.
Contract manufacturers need to use TCO as a sales tool to compete with imports while investing in workforce and automation.
Technology suppliers should identify products they make that can make U.S. manufacturers competitive and sell more by helping customers reshore.
Communities and states must shift resources to advanced manufacturing skills training and also attract foreign suppliers to fill supply chain gaps.
The U.S. government needs to implement an aggressive industrial policy

Read more HERE