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The Role of Automation and Productivity in Increasing U.S. Competitiveness

Mar 01, 2022

Our domestic supply chain is not adequately self-sufficient because U.S. manufacturing is too often not price competitive. Productivity is key to becoming competitive. Unfortunately, U.S. manufacturing productivity has grown at less than 1% for years, while Chinese productivity grows at about 6%.  

U.S. companies invest less, on average, than major offshore competitors and therefore have older equipment. Companies could invest more, taking a longer-term view and doing the math more accurately on domestic versus offshore investment and sourcing. However, companies are discouraged by a consistently low rate of capacity utilization and low return on investment (ROI). The government can play a key role by leveling the playing field to increase utilization and raise the ROI. 

Recommended actions include a massive skilled workforce program and a lower U.S. dollar value. Companies will respond with increased productivity and training. The combination of increased productivity, skilled workforce, and a lower valuing of the U.S. dollar will increase American manufacturing by an additional 25% (3 million employees) over the next 15 years, requiring an unprecedented surge in equipment purchases.

Tune in as Pat McGibbon, chief knowledge officer, AMT – The Association For Manufacturing Technology, and Harry Moser, founder and president of the Reshoring Initiative, talk automation. 

Read more about this new pivot and actions technology suppliers and distributors can take. 

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Author
Amber Thomas
Vice President, Advocacy
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