Thriving Manufacturing Industries in the US Despite Global Competition

The competitiveness of overseas manufacturing is not a new phenomenon. Often, low-cost labor countries in Asia have dominated the global manufacturing landscape due to their ability to produce goods at lower costs. However, the United States is thriving in several manufacturing sectors where its advanced technologies give it a significant edge over its global counterparts.

Advanced Manufacturing

Advanced manufacturing is one of the key areas where the U.S. is excelling, even in the face of fierce competition from overseas. This industry has embraced technologies such as robotics and 3D printing, which inherently reduce the need for large amounts of labor. While overseas manufacturers can also adopt these advanced methods, the U.S. has built a robust ecosystem around these technologies, making it difficult for them to close the gap in terms of competitiveness.

High Value Low Volume Manufacturing

Another sector where U.S. manufacturing remains competitive is in high value, low volume manufacturing, such as aerospace and defense. The aerospace industry, for instance, is highly globalized with significant manufacturing taking place in various countries around the world. However, there are a substantial number of local businesses that support the assembly of these components, providing critical services and support. Moreover, many defense manufacturing operations must be conducted within the United States due to strict control measures and national security considerations.

Localized Large Scale Manufacturing

A third area where the U.S. manufacturing sector is excelling is in localized large scale manufacturing. This includes industries that produce goods that are not easily shipped long distances, such as precast concrete structures and boats. For example, manufacturing precast concrete structures in the areas where they are intended for use makes sense because the shipping costs would be too high for international transport. Like many specialized manufacturing processes, boats are also typically manufactured locally where they are intended to be used or nearby.

Secondary Manufacturing Businesses

Beyond the direct manufacturing operations themselves, secondary manufacturing businesses that support local manufacturers are thriving. These include accessory and support functions such as heat treating, powder coating, painting, welding, and tool and die shops. These businesses often provide critical processing and manufacturing support that is difficult to outsource overseas, especially if the components are being produced locally. Outsourcing such tasks overseas would add significant costs through shipping, customs, and time delays, making local support more efficient and cost-effective.

In conclusion, while the U.S. manufacturing sector faces intense competition from overseas, it is particularly strong in advanced technologies, high value, low volume products, and localized manufacturing. These competitive advantages are not just a result of superior technology but also of the skilled workforce, robust supply chains, and strategic support services that make these industries sustainable and profitable in today's global marketplace.