Experts: U.S. in midst of “manufacturing renaissance”
Plagued by years of steep global competition, the manufacturing industry in the United States is now bouncing back in a big way, with wages for domestic manufacturing employees climbing and businesses finding themselves in a better position to make capital investments.
The Wall Street Journal cited a recent Bank of America report that said the economy is currently on the brink of a "manufacturing renaissance," noting that the success of the industry's heavyweights has trickled down to smaller businesses and ensured strong overall growth prospects.
"Manufacturers are increasingly likely to bring at least some production back to the U.S. while established players reinvest for further productive capacity and productivity improvements over the coming years," said the Bank of America report, according to the Journal.
The Bank of America report reinforced recent findings from the Boston Consulting Group, which noted that between 2 million and 3 million manufacturing jobs could return from China to U.S. shores based off foreign wage increases that have made doing business in America more affordable.
Changes in the manufacturing industry have piqued the interest of investors, particularly those who invest in exchange-traded funds, explained the Journal report. These are baskets of individual stocks that consolidate businesses within a single industry. For example, investors could conceivably invest in the U.S. manufacturing industry as a whole, enjoying investment returns comparable to the performance of the sector overall.
As for manufacturers, improving business allows many managers the opportunity to reevaluate existing technology, practices and objectives to determine if new capital investments should be made to increase business productivity. ERP software is one purchase that might help ensure manufacturers continue to enjoy steady sales and production into the future.