Why Manufacture in the U.S.?
The U.S. is an inviting destination for business.
In 2017, U.S. manufacturing reported growth rates at the fastest pace since 2014. The Reshoring Initiative also found that, in 2016, reshoring exceeded offshoring. Reshoring and foreign direct investment (FDI) trends together grew by over 10 percent in 2016 adding 77,000 jobs and surpassing the rate of offshoring jobs by 27,000. The U.S. continues to be the largest receiver for FDI in the world.
Why is U.S. manufacturing growth happening?
The storyline that the U.S. is no longer a country of makers is simply not true. The industrial sector has evolved from assembly line yesterday into a modern manufacturing environment requiring highly skilled jobs. According to the Bureau of Labor Statistics (BLS), the manufacturing industry has already added 55,000 jobs in 2017!
A number of factors are contributing to manufacturing’s rapid growth in the U.S.
- Natural resources are an obvious factor due to the abundance in the U.S. as well as the relative rebound in oil prices, which has spurred more drilling and investment.
- The U.S. has high labor standards, encouraging a quality and safe working environment. As production practices increasingly draw attention and often scrutiny, manufacturers are responding to these growing trends. In addition, manufacturers are pushing training programs and partnering with colleges and universities to create a more competitive workforce. States and communities are also integrating job training programs as part of their incentive packages to further attract manufacturers to invest.
- Expected tax reform could create lower tax rates and further investment opportunities for businesses, namely manufacturers.
- The American consumer continues to be a draw for manufacturers. Consumer spending is a large driver of a strong economy. As SelectUSA points out, the U.S. offers the largest consumer market on earth with a GDP of $18 trillion and 325 million people. Manufacturers prefer to be in close proximity to these consumers.
- The trusted business climate the U.S. provides allows businesses to interact and conduct transactions in a secure and stable environment. In fact, the Global Manufacturing Competitive Index projects the U.S. to surpass China as the most competitive ranking nation by 2020.
As the manufacturing industry grows, more opportunities are created for any business connected to the supply chain. And, if the right policies are implemented, we expect to see an increase in manufacturing activity.
During SelectUSA’s 2017 Investment Summit in Washington, D.C., June 18-20, Gray Construction will be ready to discuss how our fully integrated design-build solutions can benefit foreign investors looking to build modern manufacturing facilities in the U. S. Stop by booth #604 to learn how more than seventy percent of Gray Construction’s manufacturing projects over the past two years have been for international customers. For more information, contact Marcus Taylor, senior manager of business development, at firstname.lastname@example.org.