The USA Manufacturers have proven to be the dominant manufacturers over the decades. They are the top manufacturers in Automobiles. They rank third in the list of the manufacturing companies worldwide. The china and Germany are proven to be the best and tough competitors to USA manufacturers.
The competitive advantage of USA Manufacturers is that if they have a supportable ecosystem to expand their manufacturing industries. There is consistent challenges to the manufacturers regarding the legal production, labor cost increase and the sheer managerial complexity of co-coordinating the foreign operations. This has led the manufacturing companies to cease the off shoring initiatives and in some cases to reverses them also. While these developments are justifiably met with the with the USA manufacturers, there is some fishy fact left unsaid with the USA manufacturers.
The Manufacturing in United States has been changed substantially. There are three driving forces that are forcing the revival of the USA manufacturers. They are false promises, Capital (VS) Labor, Innovation.
False Promises: The Off shoring has not proven to be quite easy. The labor cost arbitrage game has been a loser in recent years, as companies have been hammered by substantial labor cost increases, particularly in China. The USA manufacturers have to think on this fact and move ahead to compete with china. It would be an added advantage to the USA manufacturers to bring their level up.
Capital vs. Labor: The manufacturing firms are increasingly finding its beneficial to substitute capital for labor. The industrial robots are driving an importance with the highly skilled manufacturers. They are increasing the standards of the USA manufacturing companies to regain its popularity.
Innovation: The technologies such as 3-D printing and molecular manufacturing are on the current trends of manufacturing now. The powerhouse factories of China and other emerging economies lack the advantages necessary to ride that wave. As said earlier, It would be an added advantage to the manufacturers if they move ahead with the lagging factors of their competitors like china.
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