Reshoring Update

Are jobs coming back to the U.S.? This has been a hot topic for several years now, with the optimists noting the numbers of U.S. companies that say they’re planning to reshore and the pessimists calling out the limited growth in stateside manufacturing jobs.

We’re finally moving from the prediction stage to the tallying stage. Since 2009, U.S. manufacturing output is up by 20%. Industrial robotics usage has skyrocketed during that time, so the increased output isn’t necessarily correlated with human input.

900,000 manufacturing jobs have been added in the U.S. since 2009 — 36,000 just in the month of August 2017. However, the total number of manufacturing jobs is at an all time low… while output is at an all-time high.

This is good for U.S. manufacturing in the abstract. Increased efficiency gained primarily through automation has made American manufacturing hugely productive. By and large, increased productivity means a bigger slice of the pie for everyone.

But manufacturing in the U.S. right now is increasing the available goods, not the available jobs. Manufacturing employed about one third of the U.S. workforce 50 years ago. Now it’s less than 10%.

The new jobs are generally good jobs for scientists and engineers, with wages averaging more than $80,000 per year. Low paid, low skilled factory jobs are gone and they probably aren’t coming back.

Job losses to automation also include warehousing jobs, which are increasingly automated, and retail jobs. Some experts anticipate that 63% of all jobs between the warehouse and the customer will be automated in the near future. These are not losses to the manufacturing industry, but they may offset any jobs being brought back to the U.S. by reshoring,

That means that taking good care of your machinery makes more sense than ever. Factory reman might be a wise, proactive choice for your Rexroth electric drive and control components right now.

Reman means replacing all wearing parts, cleaning everything, relacquering motors, testing everything, and sending your components back with a new warranty.

We can provide emergency replacement units for most Rexroth electric servos, drives, and controls so you don’t havde to face downtime while your machinery is being repaired or remanufactured. Call now to discuss your needs.

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Factory Repair services available with 24 hour turnaround.

Call (479) 422-0390 for immediate assistance

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