The Incodema3D team was very excited to have NYS Senator Gillibrand hold her press conference at our facility this week. The topic of her visit was new legislation called The Scale-Up Manufacturing Investment Act of 2015. This legislation will help small businesses expand their advanced manufacturing operations and create and keep high paying, high skilled manufacturing jobs in the US. It would also increase capital for entrepreneurs and small businesses looking to scale-up and commercialize their advanced manufacturing and innovation operations.
This is incredible news for NY companies like Incodema3D. Growth while keeping and creating jobs in the US is a changing reality that has been lost in recent years. Sending jobs overseas has become the reality and avoiding this with Scale-Up funding is the best news we have heard in quite some time.
As quoted by Senator Gillibrand, "American manufacturers support an estimated 17.6 million jobs in the United States and account for 12 percent of US GDP. Manufacturing also has a higher multiplier effect than any other sector, meaning job creation in manufacturing has an increased impact on the local economy. At the same time, small businesses employ 50 percent of the US workforce and have generated over 65 percent of net new jobs since 1995 and are hotbeds of innovation."
The tide seems to be shifting on manufacturing overseas. Manufacturing has begun to shift back to the US for many reasons. These reasons were summarized in a recent Forbes article and listed here below:
- More bang for the buckThe first has to do with cost. It used to be cheaper to manufacture outside the U.S.; now the costs are now converging.
Immediate gratificationThe second reason to manufacture in America involves lead times. Customers have come to expect short delivery windows. Offshore manufacturers need to store disproportionally large amounts of inventory to accommodate these expectations. But keeping inventory is costly—it requires space, energy, and labor.
The learning curveAnother reason to move manufacturing to the U.S. is that proximity facilitates learning. Companies are starting to realize that separating manufacturing and development impedes training and knowledge transfer among a company’s employees.
Born locallyYet even harder to quantify is the emotional aspect of local craft. The lack of connection that consumers often feel with products that were made far away with an unknown impact on the environment and human welfare and delivered through opaque supply chains, combined with an innate desire for individuality, has given rise to the “maker movement.”
Energy pricesA final factor is free-falling energy costs. The recent boom in U.S. crude oil and natural gas manufacturing has the potential for longtime and sustainable energy cost advantages for U.S.-based manufacturing, adding further incentive to reshoring.
All this information leads us back to Senator Gillibrand's efforts with the Scale-Up legislation. Kudos to her for working diligently to keep and create higher paying and higher skilled manufacturing jobs in the US.