August 25th, 2011 
Jonathan Dionisio 
Last July, the manufacturing industry grew at a slower pace as compared to the last 12 months. This made several analysts worried about the stability of the industry as well as the economy in general. Others were even worried that we were at the brink of a double dip recession. With the downgrade of the US credit rating, talks grew louder. But what is the true status of the manufacturing industry and where could it be headed?
Experts are saying that although the industry is not yet back to its pre-recession rate, the progress and changes that have transpired over the past few years are very significant.
For one, the industry has returned onshore. The concept of ‘Made in America’ is back. Companies are building factories here and hiring workers. Last year, manufacturers created 136,000 net new jobs. This comprises about 9 percent of the total non-farm employment for 2010.
The industry’s contribution seems small, looking at the fact that we are still suffering from a 9.1% unemployment rate. But hiring in the manufacturing sector has a chain reaction to other industries. The Center for Automotive Research estimates that every new job in auto manufacturing supports nine other jobs, from restaurant workers to parts makers.
Admittedly, there is much work to be done in the manufacturing industry. Even President Barack Obama has mentioned this. Manufacturers need to invest in research and product development in order to grow and reach full potential once again. This will also lead to the development of new products which will create new industries and ultimately fuel mass hiring.
Aside from that, students and those that have been part of the labor force have to be equipped with the right skill set in order to fill in the available jobs offered by manufacturing companies. Experts and companies themselves have revealed that they have vacant position but applicants lack the required skills and training for the job. Now, there are actions from both private and government sector to address this issue.
Where does your plan of buying a business fit in all of this? Your drive for growth can fuel a new wave of innovation for your company and the entire industry. Surely, you do not want to simply expand your market reach and continue to offer the same products and services. You can utilize the combined workforce and creative minds of your newly acquired company to build a whole new product or service for your customers.
More than growth potential, buying a manufacturing business for sale could put you in a position to become the next market leader – a pioneer in your industry. Do not be afraid to pursue your plans. Take that step and be prepared to maneuver your company into greater heights.
Source:
http://www.nytimes.com/roomfordebate/2011/08/04/can-manufacturing-fuel-a-us-recovery
http://www.youtube.com/watch?v=2ntMncOvhIA
http://www.huffingtonpost.com/michele-nashhoff/us-manufacturing-crisis_b_922889.html
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