I wanted to find the time this week to discuss and share my thoughts about the manufacturing sector here in the US. I think this is an important topic as it concerns our nation economic growth, but also it can have a positive/negative impact for many ERP consultants, and Microsoft Dynamics AX implementers.
I found an excellent study about this and after reading it, I do see the manufacturing trend being positive for the US as China no longer is the cheapest and most efficient place to do this. In addition, shipping, labor, and distribution costs are rising rapidly.
In addition, the U.S. has experienced the longest stretch of employment gains in manufacturing in almost two decades. Even though our economy is growing slowly … it is growing. There have been many “green shoots” in the economy from housing to autos to manufacturing. I beleive that the U.S. has had to learn how to transition from the post-bubble, post-recession economy in a strong, sustainable way.
Form the source:
"The manufacturing sector in the US is rebounding. Is this a cyclical recovery or could it be an indication of a more sustained one? PwC looks at possible structural changes in seven key areas that could lead to a sustained recovery and help reverse the offshoring of R&D and production in the manufacturing sector.
The key factors that could impact reshoring decisions include labor, materials, transportation/energy costs, market demand, the availability of talent and capital, tax rates, and currency fluctuations."
Until the next time.