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Manufacturing Industry

Manufacturing Industry

manufacturing industry

This report provides Manufacturing Industry links and resources to assist your startup or small business. Additionally, you can also receive free professional business advice and free or low-cost business training from your local Small Business Development Center!

View our related business reports here: Food Manufacturing Industry Resources, Beverage Manufacturing Industry Resources, Agriculture Industry Resources and Onshoring Guide.

Manufacturing Industry Overview and Forecast

The manufacturing industry is vast and experiencing rapid change, presenting both growth opportunities and complex challenges. Supply chain disruptions from past events continue to impact operations, while recent shifts in government trade policies have created uncertainty for long-term planning and investment decisions. According to IBISWorld, the U.S. manufacturing sector has experienced slow growth over the past five years. Rising purchasing costs for key commodities like oil and raw materials have also affected profits.

While challenges remain, forecasts anticipate improved performance in the years ahead. Market demand and technological advancements are expected to fuel future revenue growth. Furthermore, a major trend gaining traction in the industry is onshoring, which is sometimes referred to as reshoring. Onshoring is the process of bringing production and manufacturing back to a company’s home country. This strategy has seen growing adoption among U.S. manufacturers and is widely expected to continue.

Here are some notable manufacturing trends and resources that are shaping the industry:

Workforce and Employment

According to U.S. industry statistics, over 13 million Americans are employed by more than 239,000 manufacturing companies, with 74% of those being small businesses that have fewer than 20 employees. As onshoring gains momentum, the sector may require an additional 3.8 million workers by 2033, according to a study by Deloitte and the Manufacturing Institute. However, human resource challenges in attracting and retaining skilled talent remain significant, with 65% of study respondents citing it as a key concern. In response, the industry has seen a rise in average hourly wages, as reported by the Federal Reserve Bank, in an effort to boost interest in manufacturing careers.

Industry 4.0 and Artificial Intelligence

Digital transformation and IT changes are having a significant impact on the manufacturing industry. Industry 4.0, also called the Fourth Industrial Revolution, refers to this shift toward more connected systems, the use of artificial intelligence (AI), greater interaction between people and machines, and advanced engineering tools. Even with these new technologies, adoption has been slow. According to AMO research on automation, only 32% of North American manufacturers have adopted Industry 4.0 innovations. One of the challenges in implementing AI in the manufacturing sector has been a lack of skilled talent, according to 30% of respondents. Still, smart manufacturing presents many benefits for small businesses in the industry. A survey showed that it can boost production capacity by 15% and increase total output by up to 20%.

Manufacturer Regulations and Standards

As manufacturers return to the U.S., and production and technology innovation continue to grow, small businesses must stay informed about relevant regulations and industry standards. Though both are similar in nature, the difference is that regulations are required by a government agency, whereas standards are industry guidance and best practices for a product. Both regulations and standards play a vital role in ensuring safe, efficient, and compliant operations.

Manufacturing Industry Resources

Manufacturing Industry Associations

Additional Small Business Resources

Already in business or thinking about starting your own small business? Check out our various small business resources:

Remember, you can also receive free professional business advice and free or low-cost business training from your local Small Business Development Center!

Photo by amin khorsand on Unsplash

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