The pandemic Explain that manufacturing products abroad, as they have always done, can lead to many problems. Therefore, encourage this exceptional situation in the economy Many American companies are moving their production and manufacturing plants home to me Danny Romero on Yahoo Finance.
As a result, it has become “a huge incentive to set up shop here in the United States” Chief Economist, Dodge Construction Network, Richard Branch at Yahoo Finance Live.
For decades, American companies have had It moved its production facilities abroad in search of cheaper materials and labor. However, the epidemic highlighted Global supply chain weakness Meanwhile, it has precipitated the movement to bring manufacturing back to the United States.
“It is certainly clear that manufacturers want more control and predictability over their supply chains than they have been used to over the past two years,” Branch said.
The branch added, “While the cost of manufacturing overseas may be lower, new manufacturing construction plants have reached $41.6 billion in the past 12 months.”
“Delays in the supply chain have tied billions of dollars in inventory, resulting in wafer manufacturing plants As semiconductor production increases in the United States, along with steel mills, electric car battery plants, food production plants, sawmills, and other building materials and products.
data from Dodge Construction Network show that Construction of new manufacturing facilities in the US increased by 116% over the past year, revealing a 10% increase in all construction projects combined. For example, in Phoenix, Intel Corporation You build two factories, while Taiwan Semi Sp ADR It’s also developing one in town.
According to Branch: “Although resettlement boosts the US economy, there is still a significant risk to the manufacturing sector in the coming years”: Man power.
data US Department of Labor They have shown that Manufacturing payrolls have increased, but not fast enough. There were 797,000 jobs open in the manufacturing sector as of May 2022
Survey Deloitte I found that 45% of manufacturing executives turned down job opportunities Because of the lack of employment, and that Attract and retain a high-quality workforce Is the main focus of 83% of manufacturers.
“If true, then certainly the amount of manufacturing that can return to the United States can certainly be restricted or capped,” Branch explained.
As the pandemic has been so devastating, many countries, such as the United States, have needed to reset the delicate balance between offshoring and offshoring to maintain a consumer-driven economy.
A rising branch in the manufacturing sector when taking into account High-tech manufacturing with high added valueSuch as electric car battery factories and chip factories.
“The supply chain problems that are currently in place are certainly not going away any time soon,” Branch added. “So, at least in the medium term, I still think the manufacturing sector here has some legs to work on.”