Wait a minute – manufacturing is dead. Long live the era of tech startups and internet-connected companies with seamless app integration. Yes, the rise of countries such as China and India and the cheap labor they provide means traditional manufacturing isn’t as popular. An iPhone would cost in the range of $30,000 to $100,000 if it were developed in the US.
With that figure, it’s hard to see manufacturing as a viable option. It’s too expensive and there aren’t enough opportunities for growth. However, there is still a lane of the people of the “manufacturing renaissance,” and here are the reasons why.
Donald Trump
President Trump shot to power with a plethora of nationalistic policies which put American people first. Lots of people disagree with his sentiments, yet it has affected the industry. With major tariffs now imposed, new opportunities are opening up again. Plants and factories are coming back to America and there are potential financial incentives in the pipeline. Without the need to compete with impossibly cheap labor in the Far East, it’s arguable that entrepreneurs have a chance of success. The fact the US is ranked third behind China and the EU is a positive sign.
Technology
There isn’t a lot that isn’t available in the modern age. And, that’s not only a reference to electrical products, but we’ll get onto that in more detail later. Today, tech is constantly shaping the way companies do business, often for the better. Take nylon molding. With flexure and bending fatigue strength, it’s an excellent material for wear and tear projects. Plus, because it’s not metal, it’s affordable. Plastics are being used in this way more and more as their textile capacity increases slashing costs for owners.
Supply And Demand
Let’s not forget that the demand never stopped. If anything, it skyrocketed after the technological revolution. After all, the average person has to get their fix of items now that they are used to the likes of Alexa and Siri doing the heavy lifting. Putting aside the potential impacts on society, manufacturers stand to benefit the most. With the increased need to produce advanced products, there is a lane to make money and grow. Put this together with the fact that it’s possible to break the monopoly of cheap labor, and there’s a lot to be excited about for manufacturers. Remember that devices with artificial intelligence can’t be created anywhere.
Incubators
People who want to see America as the leading country for manufacturing aren’t doing their bit, too. Made in LA is a project which aims to open the door for small, quirky firms. To achieve their goal, the creators have partnered with big tech companies and get them to take on some of the more modest orders. They see it as a long-term growth strategy. Incubators, as they are now known, offer chances for startups to gain a foothold in the industry and cultivate major contacts.
Are you ready to take the manufacturing leap of faith?
