Manufacturing Makes a Comeback

Since the Industrial Revolution came to the United States in the 1800s, manufacturing has provided millions of Americans with steady work.

After World War II and throughout the 1960s, factory work was considered stable and paid well. It is even credited with creating the solid American middle class and putting the United States on the map as the world’s most prolific manufacturing hub.

But that all changed by the late 1970s. From that time and throughout the early 2000s, manufacturing in the United States fell off dramatically. Companies began moving their factories to countries that have less regulation and lower employee wages.

Then came COVID-19 and the great supply chain disruption in 2021.

American companies could no longer get the goods they needed to stay in business, and consumers were waiting on items like toilet paper, building materials and even medications. U.S. automakers were stymied because they couldn’t get their hands on superconductors.

As Americans clamored for new cars and new employment strategies, both business and government took notice and began working together to bring manufacturing home.

Reshoring Efforts

Shortly after the supply chain disruption had us waiting weeks on products, a report by Thomas, a solutions provider for the supply chain industry, concluded that more than 80% of North American manufacturers were considering reshoring to the United States.

Factories that develop computers, electronics and digital components for homes, cars and other electronic equipment are springing up all over. New factories on the horizon include:

• Enel Green Power PV Factory: This Oklahoma factory will begin producing photovoltaic (PV) panels to meet the growing demand for solar energy later this year.
• EMD Electronics Semiconductor Plant: This Pennsylvania facility will enable the production of specialty gases that are used in the production of semiconductors.
• Ford Motor Company: Ford is building two new campuses in Tennessee and Kentucky to build electric F-Series trucks, is building a new LFP battery plant in Michigan, and is expanding its Lorain County, Ohio, plant to produce electric vans.
• LG Energy Solutions Holland EV Battery Smart Factory: This lithium-ion battery plant is expected to be operational in Michigan by next year.
• GM: The automaker is building a new battery factory in Lansing, Michigan, and a new factory dedicated to EV assembly in Detroit.

The U.S. Congress and President Joe Biden also vowed to bring semiconductor supply chains back to the country by passing the bipartisan Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act in 2022.

This is not only great news for workers looking for good, stable jobs, it’s also good for the technology industry as a whole.

Ficosa has always been conscious of the need to build factories near our suppliers and our customers. That’s why we have factories, research and development centers and sales offices in 16 countries in Europe, North and South America, and Asia.

Celebrating Manufacturing

As manufacturing comes back to the United States, factories will look to fill more than 4 million highly skilled, high-tech and highly paid jobs over the next decades.

And, this Friday, Oct. 4, factories throughout the nation will celebrate National Manufacturing Day . Many will open their doors for tours, while others will continue to inspire the next generation of workers to pursue science, technology, engineering and math (STEM) degrees to fill the positions we’ll need in the coming years.

At Ficosa , we salute the factory and its workers and welcome the new manufacturing companies that are reshoring back to the United States.