https://www.forbes.

com/sites/forbesbusinesscouncil/2021/02/09/seven-reasons-
why-us-manufacturing-is-on-the-rise/?sh=488c20d15c0e

1. Cutting Out The Middleman

Traditionally, manufacturers sell through retailers, group buying organizations and other
middlemen, but times have changed. Take my company, for example: By using technology —
such as Shopify and various fulfillment services — we push profits directly to the manufacturer.
And by making higher margins, we can invest in the business and more automation, giving us a
strategic advantage.

Manufacturers are notoriously bad at marketing and customer service, but that’s a fixable
problem. For instance, you can sell directly to consumers, hospitals and governments. 

2. Demand For U.S.-Made Products

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Americans like to buy stuff that’s made in America. There's more transparency and
accountability when you can drive to the place where something is made. American companies,
especially entrepreneurs operating domestic manufacturing companies, have long taken pride in
producing the highest quality goods.

3. Consumer Loyalty And Support

Customers want to connect with a brand. They want to understand your struggles and your
success. If you can make them a part of your journey, they typically support you unconditionally.
Those same customers can also prove valuable in other ways. Since launching in May 2020,
customers routinely tell my company ways to improve our surgical masks. Sometimes this
comes from people with a background in manufacturing or experience working within a factory
setting. A number of those suggestions or comments have led to real improvements, too. 

Traditional manufactures are used to spending years planning a product and then producing it
for 10-20 years. But people want to see improvement sooner, and nowadays it's much easier to
hear from customers, iterate, fail, pivot and improve quickly.
4. Conscientious Capitalism’s Rise 

Another obvious benefit for domestic manufacturing’s rise is that it’s better for the planet when
you consider the carbon cost of shipping imports. Influential financial advisers are sounding this
bell, too. 

Larry Fink, the CEO of BlackRock, famously changes how business is done with his annual
letter. His 2020 letter (registration required) focused on climate change, citing it as an
“investment risk” and vowing to put “sustainability at the center of how we invest.” This
immediately prompted companies like Delta to pledge carbon neutrality by 2050.

Most polypropylene — the crucial material needed for the majority of PPE — is made in the U.S.,
shipped to China, turned into masks and then shipped back. And since ocean freight is
responsible for at least 18% of air pollutants, manufacturing products at home can be better for
the environment and consumer sales

5. Energy Costs 

The energy consumption costs in the U.S. are getting lower, which is important when competing
with international players. Historically, China has burned coal to drive electricity costs as low as
$0.03/KwH. But with increasing competition for energy, I've observed that costs have spiked to
as high as $0.14 KwH. Compare that to Texas, which is now seeing historic drops to under
$0.08/KwH in some places. In the production of the fabrics used for mask making, electricity is
the second-highest cost after labor, thus making the process of producing this fabric
domestically a strategic advantage for the first time in modern history.

6. Automation

The rise in automation available to U.S. manufacturers is going to provide a huge benefit. Why?
Because robots can now build things cheaper than workers. They require a large upfront capital
investment, but this cost is relatively the same everywhere in the world. This eliminates the
strategic advantage of cheap labor held by international competitors. I predict that industries
that have been dependent on cheap labor as a strategic advantage will see their businesses
disrupted by robotic automation over the next 10 years, paving the way for a resurgence in U.S.
manufacturing. 

7. Job Growth Trends

Manufacturing jobs have seen eight consecutive months of growth, with December seeing more
jobs added than lost, according to the U.S. Bureau of Labor Statistics. That’s worth noting since
we’re in the middle of a pandemic and economic uncertainty is the norm. Meanwhile, software
has eliminated most of the higher-paying jobs that people could get without a college degree.
More specifically, self-driving car technology coming to market could eliminate the largest
remaining swath of these jobs.

I think it is a new wave of U.S.-based automated manufacturing ventures that could provide
high-paying jobs to millions without the need for education. For instance, my company and
many others teach people with no experience or education to operate automated lines.

The pandemic hasn’t been great overall for the U.S. economy, despite Wall Street consistently
showing more gains than losses. The lack of domestic manufacturing has greatly contributed to
this, and now that we’re in an economic crisis due to the pandemic, this is only becoming
clearer. I believe a boom in manufacturing can be a solution to many of the economic problems
the U.S. faces. Those that see these opportunities and act on them will become part of a new
breed of economic prosperity for decades to come