If the success of the manufacturing sector is paramount to the growth of your business, then there is good news in store.
While growth rates have started to show a rise in demand for different manufacturing sectors in the USA, this is giving businesses like yours the opportunity to expand, gain new clientele, and to diversify their output. Not only will this article cover the recent growth rates in manufacturing, but it will also explore how you will be able to cope with the rise in demand in the future.
Growth Rates of USA Manufacturing
Since 2017, the demand for US manufactured goods has been growing, leading to these equating to half of all exports out of the country in 2018. The sectors that have most felt this rise in demand include relatively new and innovative industries, such as technology, IT, and computer security, as new products and tech discoveries have led to a more significant number of products being developed for purchase. The trends in successful sectors correlate with some of the most successful industries in the world, with electronics manufacturing having a high global growth rate. In contrast, in January 2020, automobile manufacturing saw 2.62 million units in the US alone. The US is still home to many large industry centers, such as Los Angeles, which contributes over 348,000 manufacturing jobs to the workforce.
Reasons for Manufacturing Growth
The current rate of manufacturing worldwide is slowly stagnating, with growth rates of just over 3%. However, there is evidence to suggest that domestic companies are currently working at higher rates of growth than global businesses due to lower tariff rates and future uncertainty in the global markets. This is also paired with recent development in suppliers looking to work with US manufacturers over out-sourcing abroad due to changes in consumer mindsets about where we get our products from. Not only this, but the impact of current world issues has led to food manufacturers and other essential suppliers seeing an increase in profits as more people choose to order online and to stockpile their essentials. California leads the way in terms of food manufacturers, with over 5,000 plants in the state alone.
Manufacturing Trends of 2020
Companies are starting to meet the demands of their supply chains by implementing a series of changes throughout the industry. These manufacturing chains are likely to become widespread by the end of 2020 and can help both large and small manufacturers to cope with any rise in demand that they meet. For instance, warehouses are starting to use products such as wearable tech and virtual reality to have greater control over their processes and to access the data that they always need. This can be vital for businesses that are looking to meet demand as it can help them to remain efficient and collaborative.
Many manufacturers are also starting to look at the advantages of introducing robots onto their teams, as these devices can make sure that processes are completed at a much quicker and more accurate rate, leaving every manufacturing stage, from assembly to the use of equipment, to operate smoothly. Many issues can prevent manufacturing companies from meeting demand, such as a lack of cybersecurity. To prevent hackers from leaving them unable to carry out their work, many companies have always decided to implement cybersecurity devices to protect themselves and ensure that they can continue to function at their highest levels no matter what. Additionally, many manufacturers are now starting to consider digital transformation to ensure that they can keep up with the competition and meet the newest demands of their industry. This can help them to stay efficient through operations such as continuous analytics to improve their performance continually.
How to Cope with a Rise in Demand
The rise in demand for US manufacturers has opened a wide range of opportunities for every manufacturing company, whether you produce automobile parts or food products. To ensure that you can cope with a rise in demand, here are some of the top steps that you can take:
- You should consider expanding your premises to allow you to increase your fulfillment rates and to improve the productivity of your company. By building a larger or a secondary warehouse, you will be able to provide a more extensive inventory for your clientele, as well as to assemble and develop goods at a much higher rate than previously. To do this, Signature Roofing can help you to develop a durable warehouse structure where you can house your operations and create an efficient workplace environment.
- Coping with a rise in demand can be difficult unless you choose to opt for a recruitment drive. By increasing your number of employees, you will be able to manage more orders at once and diversify the products that you develop. You can hire skilled workers with the expertise that your business needs in several ways.
One of the best ways to find the employees you need is to ensure that your factory operates in an area that is known for its manufacturing companies. You should also consider working with colleges, offering apprenticeships, and advertising to job websites that specialize in manufacturing to get the best new, young talent in your area. You should also make sure that your employees are trained to cope with changes in demand, with new training protocols and procedures to help your business to remain efficient always.
- Technology, such as manufacturing software applications, can also help you to cope with a rise in demand by streamlining your processes and automating those which you may struggle to manage yourself. Not only should you opt to upgrade your equipment for newer models that can maintain the high standards of your company and use the most innovative methods. You should also use project management and inventory apps to track every aspect of your business and ensure that no problems arise within your workplace.
The rise in demand for US manufacturers has led to numerous opportunities for companies to expand their clientele and diversify their product lines. However, high demand can also leave businesses struggling to cope under pressure. As demand continues to rise within the US in the future, by utilizing warehouse space and technology, you will be able to scale up your business in line with the current levels of demand.