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In my June column, I described the magnitude of the skilled workforce problem and some efforts by industry and associations to overcome the problem. This month, I will talk about what federal and state governments are doing to help, and I’ll offer one simple, no-cost, government action that must be implemented immediately.
Training the next generation of manufacturing workers is essential to the success of U.S. manufacturing and the economy. A recent McKinsey study found that restoring growth and competitiveness in 16 key manufacturing industries could boost annual U.S. GDP by more than 15 percent.
Resilient supply chains are fundamental to our national security and economic prosperity. The pandemic-induced collapse of global supply chains has launched a national movement to strengthen domestic manufacturing.
The COVID-19 pandemic has propelled a national movement to strengthen domestic supply chains and reshore. Recruitment of the next generation of skilled manufacturing talent is paramount to this effort, but there is a widening gap between the skills needed by industry and the skills of job candidates.
In his June 2021 editorial, ASSEMBLY's editor in chief John Sprovieri discussed President Biden's February executive order to review critical U.S. supply chains. I would like to build on John's analysis and offer advice to the Biden administration.
Shortening and closing supply chain gaps for essential products will immediately benefit the following industries: personal protective equipment (PPE), medical device manufacturing, electronics and defense. Sixty percent of reshoring cases after March 2020 mention the pandemic as a factor in the decisions. Already, reshoring cases among manufacturers of medical devices and PPE are double compared with last year.
The volatility and uncertainty resulting from trade wars and the COVID-19 pandemic, coupled with increased consumer demand for faster delivery, customization and responsiveness, is helping to promote reshoring and foreign direct investment (FDI) in the United States. Reshoring and FDI are both motivated by the same logic: the agility and financial advantages that companies achieve by producing near their customers.
Since 2010, more than 4,700 companies have brought back some or all of their manufacturing operations and sourcing to the U.S. Despite COVID-19, reshoring was up in 2020.
