Supply Chain Briefing

July 16, 2018

According to a new Brookings Institution report, the United States ranks near the top for overall manufacturing environment.  The report evaluated policies and regulations, taxes, costs, workforce quality and infrastructure and innovation.  The only two countries to rank higher are the United Kingdom (#1) and Switzerland (#2).  The high tax rate and healthcare costs and the lack of government grants/ loans kept the U.S. out of the top spot.

The study also measured manufacturing output and manufacturing employment.  China ranked #1 in manufacturing output with the U.S. just behind in second place whereas Poland ranked #1 in manufacturing employment (with 20.2% of its workforce in manufacturing) vs. the U.S. at number 16 (with 10.5% respectively).  Manufacturing contributed $2.17 trillion to the U.S. economy or 12.1% GDP.  Are you finding ways to leverage this unique advantage of U.S. manufacturing?

What Should We Consider and/or What Impacts Could Arise?
Manufacturing has been getting considerably more attention in the last few years yet we still hear skeptics asking if there is any manufacturing left.  If we have the third best environment for manufacturing, why aren’t we leveraging this opportunity?   

According to the report, there has been a resurgence of manufacturing in the U.S. the last few years. With a continued focus on innovation, education and workforce development, we can keep this trend going so long as it is supplemented with a focus on the appropriate technologies for our business (automation, artificial intelligence, big data), governance predictability and appropriate levels of infrastructure.  Have you put together plans to involve and educate your team on these concepts?  Start there as progress will start with your #1 asset – your employees.