Written by Christopher Davies
2011 was a mixed year for the world's manufacturing industry. The global economic climate and ongoing eurozone crisis did little to improve confidence among investors and executives. What's more, the devastating earthquake and resulting tsunami in Japan severely affected the supply chain of numerous companies, most notably Toyota. Heavy flooding in Thailand also disrupted large-scale manufacturing operations, in particular hard disk drive production. However, for several countries including the US and the UK, manufacturing is seen as key when it comes to rejuvenating a stalling economy.
President Obama is focused on job creation and education, two areas which manufacturing can contribute to significantly. So much so that the President said he intends to introduce tax incentives for companies to 'bring home' manufacturing jobs which had previously been carried out abroad. The move, referred to as insourcing, will build on the 334,000 jobs which have been added to the industry in the last two years.
While costs in China and India still remain lower than the US, the labour pool is vast and continues to remain competitive. However, with wages on the rise and election year fully upon us, the US is becoming an attractive alternative for several reasons.
Manufacturing has indeed become a political buzzword this year for the 2012 Republican presidential candidates who are intent on promoting the industry as the answer to the country's economic woes.
On the other side of the Atlantic, the UK's automotive sector has been gaining momentum throughout the past year, with global car manufacturers now committed to £4 billion worth of future projects. The country's current coalition government has also heralded the industry as a vital source of revenue during uncertain times.
However, Great Britain is naive to think it can depend solely on new vehicle production as defence and aerospace will also play a crucial role. The country's biggest manufacturing employer BAE Systems announced the loss of 3,000 jobs across the country due to a slowdown in orders for military aircraft. Civil aerospace, spearheaded by aviation giant Airbus, still remains strong though with continuing demand from global emerging economies.
In both countries, several government-funded initiatives are in place to encourage a new generation of potential designers and engineers to consider a career in manufacturing. With a current skills gap for several positions, pursuing related qualifications is now more likely to result in stable employment.
Advancements in technology including cloud-based software, mobile networking and 3D printers all mean manufacturers have the ability to streamline operations, enhance communication and cut costs, ultimately improving the end product for the customer.
So it seems like the outlook for manufacturing in 2012 looks good. With government support, financial backing, interest from potential industry employees and increasing levels of demand, manufacturing could well be the economic recovery answer we have been crying out for.
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