It’s hard to find anything positive in the general media about U.S. manufacturing: Hundreds of manufacturing jobs have been “exported to China”. U.S. manufacturing can’t compete. There are no more well-paying manufacturing jobs in the U.S. And even the few jobs that are available are not being filled because no viable candidates can be found. We don’t make anything here anymore.
This is all, of course, the “glass is half empty” view of U.S. manufacturing. On the positive side, it may be true that China 
has surpassed the U.S. at the world’s top producer but that doesn’t mean that the U.S. no longer produces manufactured products. According to the latest figures from the Bureau of Labor Statistics, manufacturing output (128.051) is very near the all-time record high (129.051) reached in early 2008. After the 2008 dip to 97.568, manufacturing output has been on a steady increase.
Job growth is another matter. There are fewer Americans working in manufacturing today than there were prior to 2009, but manufacturing hiring has indeed increased modestly since then. The total is, however, quite a bit lower than it was before the recession and seems to have plateaued at about the 2009 level. Bottom line: factories continue to produce more but are using fewer workers to do so. That’s called productivity. And productivity, driven to a great extent by automation, is what keeps the U.S. in the game. The only way to compete with other regions that have significantly lower wages is to remove labor content from products and the manufacturing process.
You may have read about “reshoring”, companies bringing manufacturing back (producing domestically what was previously imported). This movement is real and contributes to the total manufacturing output figures – but it does not create a lot of jobs.
So what does a U.S. manufacturer do? The simple answer is to keep doing what you’ve always been doing – look for the most efficient and effective ways to produce your products and satisfy demand. An advanced manufacturing base like we have in the U.S. is best suited for high value products with a lot of technology and innovation. Also appropriate for short product cycle products that are not suitable for success in a long lead-time environment. For lower margin products with long demand life, the only way to compete is by the removal of labor content through automation.
Advanced (highly automated) manufacturing facilities are software and data-driven, and require a highly-skilled workforce (and the skilled employees that companies are having trouble locating). U.S. manufacturing’s success is driven through the entire manufacturing value chain – increased productivity, efficient supply chains, innovation, speed-to-market, and flexibility.
The Industrial Internet of Things (IIoT) adds a new dimension to visibility and control by uniting the digital and physical worlds (Digital Manufacturing). Engineers, designers and manufacturers can simulate the entire product, its physical characteristics, and the manufacturing and assembly process, shortening new product introduction, reducing costs and delivering better products. We can have visibility across the entire supply chain, collect information on customer usage experience, identify issues and opportunities, and react quickly.
There is an urgent need to invest in workforce development with STEM proficiency (Science, Technology, Engineering and Math). And it doesn’t necessarily require a college degree to develop the required capabilities. Many job openings in manufacturing can be filled successfully by STEM competent candidates from technical secondary education, community colleges, and technical training institutes. Many companies have instituted partnerships with these resources to provide specific skills (CNC programming, for example) either as part of the education experience or in cooperative programs for new hires. Apprenticeships and co-ops are also effective programs for developing the needed employee skills.