"Manufacturing is forecast to increase faster than the general economy. Production will grow 3.0 percent in 2017, and 2.8 percent in 2018. Growth will slow to 2.6 percent in 2019 and 2.0 percent in 2020.
Five new forces drive this growth. First, is increased productivity. Partly that is due to new technologies, such as 3-D printing. Second is the growing domestic production of domestic natural gas and shale oil. Low gas prices attracted many industries that use it for manufacturing of other products. Both productivity gains and low oil prices reduce the U.S. production costs.
The third reason is rising wages in emerging markets. As standards of living improve throughout the world, local workers demand higher incomes. Some call centers are leaving India for Nebraska because wages have become comparable, and service is better. For more, see Call Center Outsourcing.
Fourth, companies realize the need to protect home-grown intellectual property. Some countries, such as China, allow their factories to copy U.S. manufacturing processes and designs. They use this knowledge to make "knock-offs" that they can sell for less. That's one reason some manufacturers prefer to remain in America.
Last, and probably least, is the awareness among consumers that "Made in America" means jobs for Americans. On the other hand, U.S. shoppers are very interested in getting the best value for their dollar. They are not willing to pay a lot more for that American label. (Source: "U.S. Economic Outlook Through 2018," Manufacturers Alliance for Productivity and Innovation.)
According to a survey from AlixPartners, 37 percent of manufacturers would prefer to locate in the United States. That's equal to those that would prefer Mexico. That's because its's easier to reach the huge North American market. That's better than in 2011 when only 19 percent would choose the United States. (Source: "U.S. to Match China in Manufacturing Attractiveness," Thomas.net, May 9, 2013.)"
Unfortunately, growth won't translate into an increase in U.S. manufacturing jobs. That's because of productivity improvements. These include the increased use of computers, robotics, and other efficient processes. The new jobs that are created require sophisticated computer-related skills to manage the robots."
