The outlook of the U.S. Manufacturing sector has finally taken a positive turn. In recent years factory jobs have started to rise after decades of decline. Over the past 4 years, factory jobs have increased and overall factory output has risen in recent months. The general upturn in U.S. manufacturing is a result of favorable economic climate that is encouraging the return of American companies, and gaining investment from foreign companies.

Here are 5 main reasons for the return of manufacturing:

1. Wages and Shipping
While wages rise in China and other countries, the wages in the U.S. have remained level, offering more incentive for manufacturers to return to the U.S. International shipping rates have also increased, adding to production costs. On-shore production also means faster shipping time and suppliers can deliver their products in a timely manner, giving them a competitive advantage.

2. Reduced Energy Costs
Lower energy prices such as electricity and natural gas gives on-shore manufacturers a cost advantage. Natural gas costs more than three times as much in China, France and Germany, and nearly 4 times as much in Japan. Foreign companies are taking notice and making investments in the US as they will reduce their overall energy costs.

3. Tax Incentives
Tax relief is available for manufacturing companies who set up shop in the U.S. The additional income helps fuel manufacturing growth in the U.S. and boosts the economy with new jobs.

4. Product Quality
On-shore manufacturers have more control over of the final product by executing plans on the same premises and avoiding quality and shipping issues. As a result, companies produce high quality products that are truly “Made in the USA.”

5. Automation
Advances in robotic technology and 3-D printing are taking a strong foothold in manufacturing, which poses many disadvantages if production is off-shore. More automation also means that fewer workers are required for the job, which reduces labor costs.

CMMS Software and Manufacturing
Many manufacturing companies are using CMMS (computerized maintenance management software) to manage and automate asset management, maintenance scheduling, and work orders. Using CMMS software makes management more efficient, as well as producing significant cost savings, which will only reinforce the advantages for manufacturing companies that decide to take root in the U.S.

Eagle Technology is proud to have served the manufacturing industry since 1986. Our suite of Proteus CMMS software has adapted over the years to the changing needs of manufacturers and is now available as a client/server or as a cloud based version for the tech-savvy manufacturer.

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