Now is the Time to Revitalize Manufacturing - Susan Poeton
The sad fact is that US manufacturing has declined on a worldwide basis. Global share has fallen to 17%, with the loss of 4.6 million jobs since 1997, according to a pair of McKinsey authors.
Still, manufacturing represents 11% of US GDP and accounts for 30% of productivity growth, 60% of exports and 70% of business research and development.
As we emerge from the COVID-19 pandemic and thoughts that we might be on the brink of normalcy — remember what normal even felt like? — the revitalization of manufacturing is all the more urgent to the economic recovery.
There are, however, a number of issues that could impair US manufacturing’s potential.
McKinsey partners Katy George and Eric Chewning write that while manufacturing output last March increased the most than it had in eight months, supply chain disruptions and shortage of goods such as semiconductors underline the urgency to revitalize the US industrial base.
Market forces driven by a post-pandemic economy alone are insufficient. The authors call for a comprehensive plan grounded in competitive realities to execute five pillars required to revitalize manufacturing:
- Focus on high-potential sectors (e.g., auto parts, pharmaceuticals and medical devices, semiconductors and communications equipment).
- Add and develop specialized talent to close the skills gap.
- Embrace process improvements and bolster technical know-how.
- Build a healthy domestic supplier base and more resilient supply chains.
- Long-term public sector investments in infrastructure to support industry productivity (e.g., transportation, vocational training, digital networks and energy.
This article is just one example of how we at Industry Today cover a range of perspectives on how US manufacturing can become more competitive by adopting new technologies, re-skilling the workforce and managing supply chains more efficiently.
Here you can read the entire opinion piece, “Why Now is the Time to Revitalize US Manufacturing.”
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