Nearly every day a news story is published that proclaims the U.S. manufacturing industry is dead and little if any manufacturing hiring is occurring. Take these claims with a grain of salt. U.S. manufacturers are thriving. But they are not the low tech, unskilled-labor businesses of twenty or thirty years ago. They have integrated so much technology into the manufacturing process that they require highly trained employees.
Even more critical, other costs like training costs especially in countries where there is inadequate skilled manpower will force the manufacture to invest in staff training and this will make offshore manufacturing unviable. Also because of competition and the supposedly cheaper labor may make it harder for the foreign investor to retain the workers he has invested heavily to train. This may result in a higher turnover of employees hence straining the operating finances.
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U.S. manufacturing is much more automated than it was thirty years ago. Automation equipment, such as welding robots, perform the manufacturing tasks. Human workers maintain and program the robots. This requires a lot of technical knowledge. The demand of robot programmers is high.
Offshore manufacturing can make better sense if the overseas company is located close to where they have a bigger percentage of the target market. For instanceFind Article, Japanese automotive companies like the makers of the Toyota car are setting their manufacturing plant in America where they have a huge market while they export other units home and to the rest of the world.
The robotic addition can be of great benefit to companies that requires applying custom product labels in large quantity in product lines. This addition will reduce all the man hours wasted by employees’ hand applying labels at slow speed than an applicator can apply them. This allows employers to use their staff for more important tasks and offers efficient production speed.