“Reshoring” and the Future of Manufacturing in the U.S.

In 2013, the U.S. saw an overall increase in manufacturing jobs. There is much speculation about what the future holds for the manufacturing sector both domestically and overseas, but one thing is for certain: the economics of manufacturing continue to change rapidly at an unprecedented pace. The U.S. is likely to see a continued increase in manufacturing jobs, but the nature of these jobs are likely to be different from roles based on traditional assembly-line infrastructures. In this article, we will briefly cover some of the trends that impact the world of work as it pertains to the manufacturing sector.

Cloud Technology and the Internet of Things

The last few years have seen multiple advances in cloud-based technologies. Many types and classes of devices are now cloud-connected, giving manufacturing facilities the ability to take automation to a new level. Cloud-enabled equipment makes it possible to share data in real time throughout various links in the supply chain. For example, warehouses are able to communicate with trucks about the location of parts and other goods.

In addition to supply chain logistics, cloud technology makes it possible to streamline servicing of production equipment as well as preventative maintenance. Older technologies had a limited ability to communicate specific data over wired connections to centralized control computers via PLC’s and control modules. Newer technologies allow for a greater degree of machine-to-machine communication, making it possible to remotely read sensor states and log operating data automatically to examine for patterns.

On-Demand Small-Batch Production

Conventional manufacturing derived economic power from efficiently producing goods in large batches. In today’s dynamic marketplace, large batch production is riskier than before. Technologies introduced in the last decade have made it easier for manufacturers to produce small quantities of goods to order. 3-D printing and other similar technologies have been a big part of this shift, but the driver behind this change has been market demand. Manufacturers are increasingly designing equipment for flexibility and reduced setup time to accommodate the unpredictable market climate.

Specialized Demand for Skills

The interconnected nature of equipment and fluidity of demand are likely to result in a greater degree of talent sharing between different facilities than before. For example, a process engineer working on site at a central production facility is likely to spend increasing amounts of time assisting remote facilities too small to have their own engineering staff. Small batch production could fragment manufacturing, resulting in a larger number of small facilities. Some manufacturing will even be done at the “micro” scale.

The New Outsourcing

Outsourcing of jobs will continue, but for different reasons than before. The globally interconnected infrastructure has helped to connect the right people with the right opportunities at the right time. Sophisticated manufacturing technologies have made it easier for businesses and consumers to cost-effectively purchase the goods they need by reducing inventory risk and shipping costs. Producing and shipping physical goods is no longer the core focus of the manufacturing industry; thriving manufacturers in the coming decade will secure strong positions in the market by becoming the best at capturing and analyzing data—and displaying it to the right people at the right time. This will be the economic driver behind outsourcing.

This entry was posted on December 11th, 2013 and is filed under General, Technology. Both comments and pings are currently closed.