According to Jerry Miller, from Cincom Smart Selling, in his post titled, “The Future of U.S. Manufacturing”, it has been a very dismal two years for U.S. manufacturers. So bad in fact that many indicators are placing activity at a 26-year low. With unemployment rates hovering around 12% (more than doubled from Q4 2008) and manufacturing at less than 12% of GDP (a 25% reduction over the past 10 years) you can see how many think the industry is headed for demise.
While a slow recovery for manufacturing is forming, there’s expected to be little to no improvement in jobs in the industry anytime soon. Companies are more likely to add hours to current workers schedules than add new jobs as the economy begins to recover.
Some good news for the industry is since productivity is improving there should be a willingness to invest in the manufacturing infrastructure for future growth and improved profitability. The most significant leverage for companies at this time is in efficient sales systems to grow their top lines.
The bottom line is it remains to be seen how many jobs will come back in the near future without significant top-line growth. The key to the U.S. economic recovery is a significant improvement in the effectiveness of our manufacturing selling systems so that we can get our unemployment rate on a downward trend. Until then, expect to see plants closing down or shutting off sections, unemployment still high, and value depreciating.
Read the full post from Cincom Smart Selling here.