CHANGING INTERNATIONAL DYNAMICS
Changing international dynamics placing intense pressures on U.S. manufacturers to re-shore.
Increasing levels of automation and digitization across the entire value chain.
CLOSING WAGE GAPS
Decades of stagnant wages in the U.S. relative to Asian markets, have dramatically narrowed the labor cost component and labor arbitrage.
Greater customization and lean supply chains in many markets have led to a push for greater efficiencies at lower and moderate volume productions and an increasing premium on agility.
New manufacturing technologies (including additive manufacturing) over indirect and direct components are starting to become competitive on unit economics and throughput.
CLOSER TO CUSTOMERS
Shifting to more regionalized production facilities, closer to customers, with “build-to-order” business models is a growth strategy as production costs decline and logistics become a large portion of total COGS.
A new premium is being placed on reducing energy, space, and emissions to reduce supply chain costs.
The U.S. government is investing at once-in-a-generation levels in infrastructure, manufacturing, and supporting technologies, creating opportunities for disruptors.
Manufacturing is finally adopting digital, e-commerce, go-to-market, two-sided marketplace, and infrastructure/cloud practices. (Note that the COVID pandemic’s WFH transition is accelerating manufacturing’s digital adoption.)