According to sources from The Boston Globe, the US manufacturing industry is in good shape. Despite the fact that the United States has seen a dramatic reduction in manufacturing jobs over the past decade, industrial production in the US remains near its all-time peak, as measured by the Federal Reserve Board. Experts predict that the manufacturing sector will only continue to thrive.
Donald B. Rosenfield, a reporter for the Boston Globe, recently took a look at how companies decide where to locate their manufacturing plants. The idea was that if Americans understand what companies look for in a location, then we could suggest ways to make the United States a more attractive place to set up shop.
Rosenfield discovered five key criteria for these companies: first, companies want a manufacturing site that’s close to developers and suppliers to reduce the time from design to production. Second, they want to be near technology development so they can take advantage of process innovations and facilitate product variety. Third, they want proximity to their consumers. Fourth, they want a place with low transportation costs to suppliers and markets. Finally, they want a location with reduced production costs, essentially where labor is cheap.
Rosenberg notes that the United States wins on most of these fronts, and that this reality is being recognized by many companies whose first instinct may have been to outsource. Rosenberg is not the only American to discover that the future of the manufacturing industry is a promising one though. Siemens also points to the “case for optimism in US manufacturing, citing economic recovery, manufacturing’s move to digital, and increasing interest from the next-generation workforce as reasons that industrial automation will have a positive future in 2014 and beyond.
This increased focus on the US Manufacturing industry means it’s more important now than ever to make sure that if you do own or run a manufacturing plant, you are financially protected with the right type of Pennsylvania Manufacturing Insurance Policy. At Tri-State Insurance Agency, we offer insurance protection for a number of New Jersey Specialty Industries. We also cover all your Business Insurance needs throughout the major counties in Pennsylvania and New York. Please contact us for more information at (888) 990-0526.