Why The Manufacturing Industry Is In Decline

Why The Manufacturing Industry Is In Decline

There’s a lot of businesses out there that seem to have their life on the line. Whether that’s because there’s less and less of a need for them in the modern world, or because they’re the first places targeted when a cash crunch hits, the effect is generally the same. And because of that, the employment sector witnesses a decline.

However, why is it that manufacturing seems to take a lot more hits than any other sector in the job world? Government conspiracy? The new innovations in the energy sector and modern solutions? Either way, there’s a lot of fact and fiction revolving around why the manufacturing sector seems to fail a lot, so let’s take a look at some of the real reasons.

The Competitiveness

Manufacturing is the taking of raw goods to turn into products people can use, and there’s a lot of sub sectors inside this one branch term. That means there’s a lot for people to work through when starting up a business here, no matter the versatility, and there’s a lot of rising costs to cope with to keep new competition out. The corporate world is a cutthroat one after all.

Take gas production as an example here. Everywhere in the world needs gasoline, and multiple futuristic and Sci-Fi movies have been made about the events surrounding a lack of it. Yet, the USA is the biggest producer of gasoline in the world, and even within the country the amount of competition is limiting. Prices are being constantly put up, meaning companies often can’t afford to pay their workers and the consumers are becoming less and less able to afford their own transport.

The Outsourcing

A lot of companies like to go elsewhere for their product needs nowadays, because of cheaper labor and factory costs in other countries. This can lead to a decline in your own country, and thus rising prices when it comes to trying to buy something within your local market.

However, this can also be something for your company to take advantage of. When you tell the consumer your products are all nationally sourced, a whole section of the market can be opened up to you. Be clever in your advertising to try and fill this kind of gap!

In Truth, is There as Much Decline as We Think?

At the end of the day, when we look at graphs of employment over the last 70 years or so, we’re isolating one part of a puzzle from the big picture and basing assumptions off of that alone. So when it comes to making sure our facts are straight, everything needs to be taken into account.

Employment in the manufacturing sector has fallen at roughly the same rate of the national average, so there’s no need for the amount of panic that’s typically felt by people trying to get started working with raw materials.

The manufacturing industry isn’t as in danger as we think; yet, declines in any sectors are worrying.

Featured Image from Shutterstock / By MSSA

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