The American manufacturing industry isn’t going to fade anytime soon. But like all commercial sectors, it’s expected to evolve in the upcoming years. While there’s no way to tell exactly how the American manufacturing industry will change, analysts have made some predictions based on current and historical data.
Manufacturing Services Employment Will Grow
According to a report published by the U.S. Bureau of Labor Statistics (BLS), approximately 90% of all manufacturing-related jobs created over the next decade will involve services. The BLS says the growth rate for the services subsector will be about 0.8% through this period.
Made in America
Not surprisingly, analysts also believe that manufacturers will shift their operations from abroad to stateside in the coming years. With a newfound emphasis on made-in-America products, manufacturers are now noticing the financial benefits of producing products here in the United States. It allows them to avoid costly tariffs and import fees, promoting higher profits and greater success.
Renewable Energy Products
With renewable energy like solar and wind becoming more popular, we’ll likely see higher output of renewable energy products by American manufacturers. According to Fortune, U.S. jobs in the solar market increased by 24.5% in 2016, with more than one-quarter of a million Americans employed in the market. To put that number into perspective, that’s more jobs than the fossil fuel power plant industry. This growth offers new opportunities for American manufacturing companies, many of which are seeking to capitalize on the growing trend of solar.
American manufacturing companies are using data-driven process to enhance and optimize their operations. With data analytics systems, for instance, manufacturing companies can identify weaknesses in their operations. Once identified, these weaknesses can be addressed to create a lean manufacturing model in which waste is reduced and efficiency is improved.
Manufacturing companies are also expected to use consumer input in their operations. A report published by IDC Manufacturing Insights suggests that by 2019 nearly half of all American manufacturing companies will work directly with consumers to improve their product designs.
Finally, more and more American manufacturing companies are taking a proactive approach towards creating efficient, Eco-friendly processes. Known as green manufacturing, it’s become a key component of many manufacturers’ culture. And with federal and state tax incentives, this trend will likely continue in the years to come.
These are just a few of the ways that the American manufacturing industry will likely change in the upcoming years.