Manufacturing: Is There a Problem?

MANUFACTURING: IS THERE A PROBLEM?

The topic of manufacturing in the U.S. is closely related to the topic of offshoring. Most people believe that our manufacturing is down due to companies taking jobs away from the United States and relocating them in foreign countries. Offshoring only plays a small part in job loss. The fact is that our manufacturing is steadily on the rise, but jobs are decreasing. Automation as well as more efficient production processes are keys to why there are less jobs available in the manufacturing sector.

This paper will discuss the manufacturing case study, reshoring, education as it applies to manufacturing with a conclusion and recommendations.

Case Study

There has been a steady decline in the number of manufacturing jobs in the United States since 2002. Jobs have decrease an average of 2.4% each year from 2002 up to 2012 (Bureau of Labor Statistics, n.d.). It is predicted to decrease to only .5% annually through 2022 (Bureau of Labor Statistics, n.d.). The general public thinks that this is due to production moving overseas, but this is only true to a small extent. The bigger reason is that the manufacturing industry has become more automated and more efficient over the years. This is the reason why we have lost manufacturing jobs. The more robots we use and the better, more efficient we get, the less bodies we need for production (Gerber, 2011). This is also the reason that we continue to produce more each year while losing jobs. This means that former manufacturing workers need to retrain into other jobs such as the services industry.

Reshoring

Reshoring is the return of manufactures’ to the Unites States. There are several factors that motivate companies to return from overseas. These include rising wages abroad, increasing transportation costs and cheaper energy at home. But, there is also one more thing that could lure companies back, a better infrastructure.

Wages overseas have begun to increase. As an...