Industries around the world have been looking at ways to optimize their production and get more value from their products.
This has translated into an exponential increase in manufacturing output, with manufacturers now leading the way in fighting climate change, providing access to clean water, and empowering developing countries to benefit from their natural resources.
Manufacturing is booming because it has become economically viable again, especially when you factor in new technologies such as robotics and 3D printing.
The Benefits of Investing in Manufacturing
In some ways, we are living in the golden age of manufacturing, not because there are more jobs per see, but because there are so many different methods of manufacturing too.
From prototype insert molding by Protoshop to steel working and braizing, there are so many options for companies to choose from now, it’s having a significant effect on the market.
Below are a few more reasons why the industry is going so well.
1. Prototyping and Delegation
Protoprinting, 3D printing, and 3D printing services have come into play.
Prototyping is a great way of creating a manufacturing process that won’t need too many resources and can be done on the fly if it needs to be tweaked. Protoshops have popped up everywhere as a result of this.
3D printing services have been around for some time, but they have recently been getting more popular due to the growth in the industry.
Companies are now able to locally delegate their product development and fabrication tasks without being bound by high-cost labour in certain regions where skilled labour may not be readily available.
2. Tariffs & Taxes on Exports from China
Tariffs and taxes can add up quickly when exporting products to another country. This is a big deal for the manufacturing industry, especially in China.
We’ve seen a massive surge in the manufacturing of products over the past ten years in China, but with this new tax policy, we are seeing a huge shift from Chinese manufacturing to the U.S., especially from technology companies.
3. Automation of the Manufacturing Sector
Automation has been heavily impacting production lines and factories around the world, and we are actually starting to see a lot more jobs related to this than we are automation.
This is because companies are using automation less for cost reduction and more for increased productivity, quality assurance, and efficiency. In fact, some factories have been able to cut a huge percentage of their workforce due to automation, thanks to robots.
4. Increasing Demand for Local Productions, e.g. Made-in-America Goods
We see a huge rise in demand for made-in-America goods lately, and it’s been increasing since the start of the year. The Made in USA campaign has really taken off in recent months, and companies are starting to get on board.
We saw this at this year’s CES, where thousands of products were showcased that were made in America. The new tech showcase had more exhibitors than ever who chose to showcase their products as “Made in America”.
These companies want to show their patriotism and need for made-in-USA goods, and so far, it is working out great.
In conclusion, new technology innovations and demand for home production have resulted in the booming manufacturing sector over the years.
Similarly, we saw the ongoing COVID vaccine production and the effect of the Russia-Ukraine crisis on the global supply chain have made many countries think about local production. We know that many developing countries, especially in Africa, are seeking to manufacture goods at home to reduce over-dependence on other countries.