Turning around a two-decade trend of decline is not an easy task. There is not one silver bullet that solves this multi facetted challenge of achieving productivity, economic growth, jobs, income growth for workers/ communities, innovation, competitiveness, and national resilience. The manufacturing sector can help to achieve such by retaining and expanding technology know-how and innovate to build competitive products. If we get this right, it can have a significant impact on job creation and GDP growth: The opportunity, the key issues and way forward
US manufacturing needs a major infusion of investment. While many US manufactures are profitable companies, private US Investors put their money elsewhere for higher returns. Traditional market investors are not delivering the full infusion of capital that is needed, especially to smaller suppliers. McKinsey estimates that $15-25 billion is needed annually over the next decade to upgrade our industries. US manufacturing needs to add and develop specialized talent – and confront the wage stagnation underlying its inability to fill job openings. The skills gap is real, industry needs to work together with community colleges to create a pipeline for higher-level skills. The manufacturing workforce is aging, but attracting a new generation when production wages are not competitive compared to other career choices. Boosting productivity across entire sectors requires embracing process improvements and bolstering technical know-how. Investing in new equipment and industry 4.0 technologies is a critical part of this effort. Continuous improvement using methods like Kaizen is a must and not an option. We are doing our part to make US manufacturing more competitive, yet it is also clear that this is an on-going effort, not a one-time push. Full study: www.mckinsey.com/building-a-more-competitive-us-manufacturing-sector
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