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The Evolving State of American Manufacturing

Posted on Aug 02, 2016 by Cullen Hikene

Automation driving productivity gains but retraining programs needed

A really insightful article was published by Ylan Q. Mui of the Washington Post today.  It spoke about the current state of American manufacturing, which has obviously been a topic of immense focus in this election cycle.

What the article tells us is that American manufacturing is actually doing very well, at least from an aggregate production standpoint.  In fact, total output is nearing the all-time high levels that occurred immediately prior to the Great Recession.

The Fed notes that total American manufacturing production has climbed significantly in the last few decades.

It is true that the total number of Americans employed in manufacturing has gone down significantly in recent years.  But that inherently implies that the people doing the manufacturing are reaching new levels of productivity on a per person basis.

We can speak to this first hand.  Every day at 3Diligent, we interact with companies pursuing more effective production of their next generation prototypes, production parts, replacement spares, and custom tools to support some of their traditional manufacturing processes.  All of these companies recognize that advancements in technology are providing them new and better ways of doing things.  Injection Molding, CNC Machining, and most recently Additive Manufacturing (a.k.a. 3D Printing) are all examples in that progression.  Our rock star contract manufacturing partners utilize those tools to accelerate innovation and make our customers more competitive in the global marketplace.

Automation is a good thing.  It allows us to innovate faster and produce more products locally that otherwise would need to be sent overseas to be price competitive.  While the pace of change can sometimes make us uncomfortable, we have to recognize that short of an international truce on technological advancement, continued automation is going to happen.  Because America doesn’t have a monopoly on processors, memory chips, and the internet, trying to pump the brakes on technological advancement only stands to leave us behind those countries who are pushing forward aggressively.  Better to be the ones doing the innovating and creating the next generation technologies than the ones having to buy them from overseas once foreign countries have developed them.

With that said, whether it be to automation or overseas labor, there are a significant number of manufacturing professionals who have been lost in the shuffle.  So for all the macro benefits that faster times to market and lower unit costs provide the American economy, at the micro level, there are some very real consequences for those individuals displaced by technological advancement and their families.

The number of American workers in the manufacturing sector has declined significantly in recent years

It is of critical importance then that America develops retraining programs for manufacturing workers displaced by automation and globalization.  Such retraining programs can equip those displaced workers with the skills to tackle jobs for the new manufacturing economy or transition them into other industries.

That is one of the reasons that we at 3Diligent are big supporters and proud members of America Makes, the National Additive Manufacturing Innovation Institute.  In addition to funding a wide number of research programs helping foster American innovation in the area of 3D Printing, they are also starting to really tackle the challenge of helping train the next generation of American manufacturers in how to get the most out of additive manufacturing technology and take this innovation from the R&D lab to the shop floor.

American manufacturing is doing admirably but it isn’t without some serious growing pains.  We are excited to support innovative companies that are embracing this evolution and organizations like America Makes doing the right things to help retrain American manufacturing workers to succeed in these times of rapid change.

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