Conventional wisdom has it that manufacturing is unimportant, obsolete or something better done overseas. This is incorrect.
US manufacturing accounts for just over 12 percent of US labor. That’s down by almost two-thirds from 30 years ago. Considered from a value perspective, manufacturing and its associated supply chains account for almost 40 percent of US commerce.
Manufacturing is far more important than employment statistics suggest. Advanced automation and industrial robotics have made manufacturing far more productive than it was in the 70s and 80s.
In fact, US manufacturing is now so productive that domestic manufacturing can compete with production lines anywhere in the world for most types of products.
An example of this industry competitiveness can be found in Modula USA. Modula manufactures innovative supply chain solutions including automated vertical parts storage and racking systems, like the Modula Lift.
To produce these systems, Modula has moved away from the trend of offshoring and today manufactures their modules in a new US plant, which opened September 25th in Lewiston, Maine.
Why choose domestic manufacturing when overseas operations often offer low-cost labor? For Modula, the decision to manufacture in the US was based on program criteria that took into account quality, delivery, customer service and production costs.
The Lewiston operation can productively and competitively manufacture Modula’s vertical lift module assemblies using laser cutting, automated sheet metal forming, pick-and-place robotics and American labor.
Additionally, productivity combined with proximity to Modula’s US market means shorter delivery time and improved customer service.
The ribbon cutting of the Lewiston facility included dignitaries such as Maine senator Angus King and Franco Stefani, president and owner of Modula’s parent company System Group. Both noted that Maine represents an ideal location for the new facility.
Good transportation links, access to a skilled American workforce and modern facilities and services led Modula to Maine, but the firm could have chosen any of dozens of US states with similar results.
Modula’s strategy is part of a growing trend in global manufacturing companies: produce locally, ensure a reputation for quality customer service and operate with build-to-order efficiency and high productivity.
This isn’t simply reshoring. Rather, it’s a new investment which is a strong signal that indicates US-based manufacturing is profitable for corporations worldwide.
For more information about Modula, visit their website at www.modula.us.
Modula has sponsored this post. It has no editorial input to this post. All opinions are mine. – James Anderton