June 01, 2023
Over the years, globalization has been blamed for the loss of manufacturing jobs. However, in a Los Angeles Times article August 1, 2016, Daniel Griswold believed differently. According to Griswold,
What this renders is more manufacturing with fewer employees because of improved efficiency. And, manufacturing frequently uses parts from multiple countries. Jill recalls reading years ago that the Boeing 757 while made in America, used parts from nine countries!
This is largely what backfired during the pandemic. Consumer staples did go offshore and parts of items purchased from other countries also were hurt by pandemic issues.
Post pandemic, “Made In America” is the new buzz phrase. With green energy incentives and a concentrated effort to alter supply chains, U.S. manufacturing is making a comeback. According to the Census Bureau data, construction on factories reached the highest level ever – $108 billion. The phrase used here is “reshoring.”
There are employment opportunities in the manufacturing sector. According to the National Association of Manufacturers, labor shortage is a major concern. “I can bring back all the orders I want; there will be no one to make them,” said Harry Moser, president of the Reshoring Initiative.
The Biden’s administration is offering billions of dollars for electric vehicles, semiconductors, etc. to expand these industries. As with many articles we write, retraining of the work force to fill jobs in new areas are needed to meet the growth requirements. You can’t grow without a workforce able to handle the new jobs.
*Based on LA Times, August 1, 2016 and Wall Street Journal, April 8, 2023
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