3D Manufacturing and COVID-19
The global pandemic may return the U.S. to regional manufacturing, simplifying supply chains and making us more self-sufficient. “The optimal manufacturing location by 2022 is regional or local rather than global…The result of this is a supply chain that is no longer big, complex, and global.” Supply chain disruptions have highlighted the need for more direct digital manufacturing, which integrates 3D printing with traditional manufacturing methods and uses fewer resources to create entire parts or products, making distributed and regional manufacturing sustainable. (The Reshoring Initiative would love to hear of and promote reshoring cases enabled by 3D printing.)
Manufacturing has the highest multiplier effect of any sector of the U.S. economy
Every $1.00 spent in manufacturing adds another $2.74 to the economy, the highest multiplier effect of any economic sector. In addition, for every worker in manufacturing, another five employees are hired elsewhere. (Source: NAM calculations using 2018 IMPLAN data.) Recent research suggests that manufacturing’s impacts on the economy are even greater when we consider the entire manufacturing value chain plus manufacturing for the supply chains of other industries. That approach estimates that manufacturing could account for one-third of GDP and employment. The same research also estimatesthe total multiplier effect for manufacturing at $3.60 for every $1.00 of value-added output, with one manufacturing employee generating another 3.4 workers elsewhere. (Source: MAPI)
Rebuilding and Reshoring: What the U.S. Government Must Do
At IMTS.com, Harry Moser lays out the groundwork: “To reverse the trend of goods trade deficits and to boost competitiveness, the United States should acknowledge that a revitalized, price competitive, manufacturing sector is its first priority, necessary to accomplish other key objectives.”
Bye Bye, ‘Buy American’ Policy
Carey Smith, founder of Big Ass Fans, says that President Biden’s Buy American plan will not get the job done. Instead, we need to educate government and corporate buyers to stop buying on the basis of lowest price and put more emphasis on quality, delivery and the benefits to our country. The Reshoring Initiative’s TCO Estimator is available free online for that purpose.
Manufacturers Want Biden to Boost ‘Buy American’ Practices
2021 BDO MANUFACTURING CFO OUTLOOK SURVEY
The 2021 BDO Manufacturing CFO Outlook Survey presents a thorough review of the specific steps that companies are taking to address innovation, supply chain, skilled workforce and more.
