How To Bring Back Manufacturing Jobs

While headline figures may suggest otherwise, US manufacturing is actually far healthier than we might think. While old-time factory worker jobs aren’t coming back to the US, robots are increasingly taking the place of human workers on factory floors. And even if the trend is slowing, the good news is that the industry isn’t dead.

Rebalancing trade flows

Rebalancing trade flows to bring back manufacturing employment has many advantages. For one, it will generate new federal revenues. Another benefit is the creation of millions of high-wage manufacturing jobs. A global industrial rebalancing is also good for the environment. Rebalancing trade flows will increase overall demand for U.S. production by $1.5 trillion a year. This could help support up to 17 million manufacturing jobs in the United States.

Growing trade deficits have been a major factor in the destruction of manufacturing jobs in the U.S. over the past two decades. For example, in 2015, the U.S. trade deficit with China was responsible for the loss of 2.8 million manufacturing jobs. This is about three-fourths of the manufacturing jobs lost in the past two decades.

Digitalization

The world of manufacturing is undergoing a dramatic transformation, becoming more specialized, technology-intensive, and dependent on higher-value-added goods. With these changes, manufacturing jobs have changed too, and they are no longer the same as they were decades ago. For example, one job may be to program a computer, while another may be to maintain robots and machines.

While the vast majority of manufacturing jobs cannot be brought back, there are many new opportunities. With digitalization and robots, manufacturers are becoming flexible and automated, and fewer blue-collar jobs are needed. One example is Adidas’s recent decision to build a “Speed Factory” in the United States, which will create 100 new jobs. The company will augment its workforce with robots and 3D printing. Ford also announced a $1.2 billion modernization program that will create 130 new jobs in the US.

Big data

Big data has the potential to help manufacturers predict demand more accurately and prevent wasteful production. It can help determine which parts of a product need to be replaced before they reach the customer. It can also help manufacturers avoid unexpected equipment failure. By combining real-time data from production lines with financial information, big data can help companies reduce costs and maximize resources.

Companies should focus their big data initiatives on the business challenges most impacting their operations. For example, most industrial manufacturers should focus on customer analytics, which can be used to connect into a customer’s procurement systems, since demand signals, and collaborate directly with customers. In addition, big data can also help sales forces to improve their skills and productivity and increase the efficiency of marketing campaigns.

Automation

Many manufacturing workers have felt the effects of automation over the past few years, and the concern about their future is understandable. However, if done correctly, automation can bring benefits to manufacturing workers and the industry at large. Here are some reasons why automation may be beneficial. Listed below are some of the reasons that automation may bring back manufacturing jobs.

Work experience shortage: The manufacturing industry faces a skills deficiency, with 2.1 million jobs unfilled by 2030, according to the Manufacturing Institute, a division of Deloitte. The report also estimates that the shortage could cost the U.S. economy as much as $1 trillion a year. This is forcing manufacturing managers to bolster their workforce with new employees, and automation may be a key factor in resolving the skills gap.

Middle class

Manufacturing jobs are a major issue for the United States. They have been declining steadily for decades. In fact, they have declined by nearly five million since 1996. Many people feel that steps need to be taken to protect these jobs. In order to bring back manufacturing jobs in the US, we must invest in training and education programs.

First, we must reverse policies that discourage manufacturing. We should oppose extra stimulus rounds, supplemental federal unemployment benefits, and policies that make it more expensive for companies to hire people. Another important policy change is to lower the retirement age. The Biden administration has proposed lowering Medicare eligibility to 60, but this could have disproportionate effects on manufacturers.