(Newswire.net — November 1, 2018) Salt Lake City, Utah — Americans around the country have a hesitant, often negative outlook on the state of the manufacturing industry. One study conducted by a manufacturing software company found that the majority of Americans consider the heyday of manufacturing to be long gone. The survey also found that 70% of Americans believe that the industry is declining, and that offshoring is the primary reason why.
Media doesn’t help with the public perception of manufacturing, either. It’s not uncommon for Americans to consistently hear about businesses taking their manufacturing efforts overseas, and giving those jobs to low-paid workers who live in poverty. Of course, this certainly does happen around the world, but the truth is, the data reveals that there’s a lot more to the story.
Low Wages, Poor Benefits
The bad image that’s been attributed to the manufacturing industry is, in many ways, a myth. Many Americans believe that manufacturing as a whole is going downhill fast, as a large amount of companies rush across seas to seek lower margins.
According to research, roughly 60% of Americans believe that manufacturing jobs aren’t as readily available because they’re given to overseas workers. However, according to the Manufacturing Institute, this perception has no data to back it. In fact, the Institute believes that within the next 10 years, there will be 3.5 million manufacturing jobs to be filled here in the United States—and estimate that 2 million of those jobs will go unfulfilled. Unsurprisingly, perhaps it’s this perception of the industry that continues to thwart capable candidates from applying.
There’s also a misconception that employees in the manufacturing industry aren’t paid well, and are treated poorly. However, according to the U.S. Bureau of Labor Statistics, the average salary for manufacturing production employees on private nonfarm (not including those in supervisor positions) was $44,595.20 in July 2018. This breaks down to an hourly rate of $21.44 per hour, three times higher than the country’s federal minimum wage of $7.25 per hour.
Managerial roles also tend to pay very well, and are on par with the technology sector. Additionally, manufacturing employees also tend to receive better businesses compared to other industries, like bonuses, paid leave, and insurance. If applicants conducted research on the industry to learn more about what’s happening behind the scenes, they’d likely see the growing opportunity, however, the media makes it difficult for many to take a leap forward.
Low-Cost for New Businesses
Cortex Composites is a manufacturing startup company that provides rollable concrete that can be activated to water to quickly fix drainages, canal beds, and other issues. They received hundreds of thousands in investments, and were a clear indication that not only is manufacturing possible stateside, but that new businesses can sprout and innovations can keep them local.
Emerging startups are also opting to stay low-cost—not by running overseas, but by investing in materials like a CNC machine that’s used to help boost production without forking over a ton of cash on out-the-box machinery. The entrepreneurs of today are seeking to cut costs without cutting corners. And with new businesses evolving during a shift in the manufacturing world, there will certainly be better jobs as more Americans learn the truth about the future of the industry.
There Are No Growth Opportunities
The fact remains that manufacturing remains critical to both the advanced and developing world. Manufacturing is at the forefront and foundation of all technology and advancements. And yet, another big issue with its image is that there is no opportunity for growth, or that it’s geared towards young, able-bodied workers exclusively.
However, with so many changes in the industry, now is a great time to get involved. Because of those technological advancements, there’s more gamification, creativity, and problem-solving involved. According to a report published by McKinsey, manufacturing continues to grow on a global scale, accounting for 16% of global GDP and 14% of employment.
“Manufacturing is entering a dynamic new phase,” reads the report. “As a new global consuming class emerges in developing nations, and innovations spark additional demand, global manufacturers will have substantial new opportunities—but in a much more uncertain environment.”
More Jobs Are Coming Home
Believe it or not, many manufacturers are actually taking a step back and bringing jobs back into the States. In June 2018, motorcycle manufacturer Harley Davidson announced that it would be shifting some of its overseas production to avoid tariffs imposed by the European Union. And according to Reshoring Initiative, the number of American jobs that are being reshored has increased tenfold since 2010. Over the next few years, expect many overseas positions to return home.