Manufacturing Increase In The US Can Cause Waves
The manufacturing industry in the United States has been on a steady decline for many years, and suddenly it increased in the year 2021. There is a likelihood that the manufacturing industry will continue to grow into the future and have a massive impact on the United States economy.
Factors That Caused An Increase In The US Manufacturing Industry
There is a wide range of factors that have impacted the manufacturing industry over recent years. In recent months large-scale changes have made the economy reel and impacted many different sectors. One of those sectors is the manufacturing industry. Below are a few of those factors and how they are interlinked with different industries.
1. Covid-19 Blocking Country Borders
Covid-19 has been the domino that impacted a wide variety of industries and businesses. That impact has reverberated throughout the economy. When borders were shut down, it was nearly impossible to transport manufactured goods from one country to another. This presented an opportunity and encouraged manufacturers within the United States to increase production. As increased production was needed, there was an increased need for innovation and automation.
2. AI & Manufacturing Automation Surpassing Outsourcing Manufacturing
As manufacturing production increased, there was a need for automation. Luckily within the technology industry, there has been mass development of AI technology. Applying this AI technology to manufacturing helps tie the manufacturing industry to the technology industry in multiple ways. It can be seen as ironic that an electronics manufacturing business can be using the same technology it is building to automate the manufacturing process.
By integrating AI technology and automation deeper into the manufacturing process, there is a breaking point where it is more profitable to manufacture products in the United States rather than shipping the materials around the world. This could indicate a drop in international transportation and distribution business and an increase in national distribution, transportation, and maybe even exportation.
3. A Need For Increased Delivery Speed
Over the past year, there have been repetitive mail delays and shipping delays throughout the world. These delays lead to a massive loss in profits. As customer service and speed of delivery outweigh the quality of a product, the priority is manufacturing a product in the correct location.
While the Covid-19 impact simply tipped the scales to bring manufacturing back to the national market, the latter reasons can likely continue to drive the manufacturing industry to grow within the United States.
What Can We Expect To See In The Future Of Manufacturing
It is likely we will see manufacturing develop deeper into automation. The industry will become more fractured. Niche and personalized manufacturing will produce a more expensive product since it is more difficult to automate personalized manufacturing. Streamlined manufacturing will explode in the United States because of how cost-effective it is. Either way, manufacturing is likely to increase in profits over the next few years.
The Future Of The Manufacturing Industry’s Technology
Smart factories or factories that utilize artificial intelligence have ushered in more advanced manufacturing practices. The advanced technologies can help to support a new type of industrial revolution. Operating technology can improve the production processes and machine learning can ensure the development continues to improve and grow.
The general public has seen the development and growth of the manufacturing industry firsthand. 3d printing technology is now accessible to all. 3d printing introduces a wider range of people to manufacturing and the possibilities behind the industry.
As the manufacturing industry grows with technology, more and more types of manufacturing will be accessible to people. While I doubt we will see an assembly line in too many people’s basements, manufacturing has not reached its peak in growth. Manufacturing businesses are a wise investment in the future.
Now Is An Opportune Time To Buy Or Sell Your Manufacturing Company
Due to the recent developments within the manufacturing industry, now is a great time to sell your manufacturing company. It is always more beneficial to sell a business when it is seeing success. At the same time, if the manufacturing industry continues to develop as it is projected to, manufacturing companies will skyrocket in value. Contact us to buy a manufacturing company.