The Heart of American Resilience

A Manufacturing Revival 

Not long ago, the US was viewed as a manufacturing powerhouse. But, with a shift toward the service economy, rising labor costs, and heavier regulations, the US share of global manufacturing declined from 28% (2002) to 18.6% (2017)1. With the sudden disruption of global supply chains caused by the pandemic, our vulnerability hit home. We had slowly become reliant on others for everything from medicine to hard goods, food, clothing, everyday necessities, and more. Undaunted and as it has done before, the manufacturing industry came to the rescue. 

Manufacturers Unite! 

In times of war and national crises, manufacturers unite and help pull our country together. During the COVID-19 outbreak, large and small manufacturers repurposed facilities and redesigned production lines to make personal protective equipment (PPE), ventilators, masks, and gowns. Companies ramped up production of sanitizing equipment and chemicals. Pharma competitors joined forces to bring the brightest medical and scientific minds together to formulate vaccines at record pace. 

Through the industry’s actions, we achieve solidarity, and the wheels of the economy continue to turn. Essential items are produced and get to those who need them. Workers stay employed and recognize the vital role they play in their communities and the stability of the country. This is American ingenuity at work. 

Modernizing Manufacturing 

As consumerism and consumption have changed, so too must manufacturing. Large-scale production is still essential – vehicles, heavy machinery, mass production of consumer goods. However, e-commerce has exploded with coronavirus, and social media has become a dynamic and personal shopping channel. Digital storefronts like Shopify make deploying a retail business almost effortless. Direct-to-consumer and on-demand production businesses operating out of warehouses or garages are relevant and are vital to manufacturing as nearly 75 percent of firms have fewer than 20 employees2. 

A revitalized manufacturing industry will need to leverage technology that help these small and large manufacturers alike. Accelerated deployment of advanced analytics, robotics, artificial intelligence (AI), machine learning, LiDAR, and 3D printing will fuel innovation and supplement operations on the shop floor. This is not just talk – it is really happening. According to the McKinsey Global Institute, 85 percent of C-level executives saw digitization and automation initiatives accelerate in their businesses this year3. These digital environments will also draw a broader array of tech-native workers into manufacturing professions, critical to the industry’s future. 

Collaboration across manufacturing’s dynamic ecosystem will build resilience and spark new thinking for the industry. Bringing together supply chain partners, regulators, suppliers, data scientists, and academia will be integral to long-term benefits, de-risking technology decisions and creating greater agility across the value chain. Smaller, modular, shared, and mobile production facilities and the ability to leverage digital manufacturing will establish new business models and revenue streams.  

Triple Bottom Line Benefits 

Revitalizing the industry and bringing more manufacturing home will create high-quality jobs and help stabilize the economy. Each dollar invested in manufacturing adds $2.74 into the economy4, a worthwhile investment. Leveraging technology, new supplier and partnering models, and instituting smart practices will spur innovation, deliver scale, and help strike a balance between industry growth, social innovation, and environmental sustainability.  

Manufacturing is a vital part of our cultural fabric and reflects the heart of American resilience. With an industrial revival built on a foundation of innovation, technology, and an expansion of a dynamic ecosystem everyone can win.