The Global Edge, Manufacturing as a Strategic Partnership?
Can global manufacturing create more strategic partnerships? Recent reports are citing the surge in American Manufacturing. And with these reports will be the need to evaluate partnerships and global positioning.
The Boston Consulting Group recently published a report about the boom of export manufacturing in the United States. Could the U.S. become one of the developed world’s lowest cost manufacturers?
According to the report:
• Exports, as a share of the U.S. economy are at their highest point in 50 years.
• By 2020, the U.S. is projected to capture $70B to $115B in annual exports from other nations.
• Re-shoring could create 2.5m to 5m American factory jobs associated with increased manufacturing.
• The U.S could capture 5 percent of total exports from countries including Japan, Italy, France and the UK.
Industrial groups are going to feel the effects of this surge the most. This includes transportation equipment, chemicals, machinery and computer and electronic products.
Where are the Workers?
Perhaps the biggest challenge will come from the need to find and hire skilled workers. In the short-term, skilled worker shortages are not going to have much of an impact. However, if this issue is not addressed the longer term consequences will be felt if new workers are not recruited and properly trained.
Build Strategic Partnerships
This report comes as another article, published in Forbes this month highlights why China is losing its edge in manufacturing. While this article sounds as if it is solely pro-U.S. Mark McKay, the author encourages manufacturers, particularly those in America to see this as an opportunity to develop better relationships. “Global winners in the next generation will need those relationships and partnerships to capture market share here, there and everywhere else,” said McKay.
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Let us know if you agree and what challenges you see in this sector in the coming years. Follow us on Twitter @Datixinc.