Perhaps no other industry in the United States has changed as much as manufacturing in the past 20 years. From how we staff our plants, to the solutions to provide and the means in which me make things – in a such a dynamic environment it becomes critical to stay current with developments. Simply put, the pressure to be faster and better has never been greater, and it’s never been harder to keep up.
Here are five things everyone should know about manufacturing in today’s market.
Having some sort of protected information technology infrastructure is critical to the success of any organization. Strong system security safeguards orders, information and specs and is mission-critical for any company looking to stay current.
From getting materials to ecological concerns – the environment plays a critical role in our industry’s success. Earthquakes, floods and wildfires have not only caused hundreds of billions of dollars in literal damage – but economic damage as well. Companies today are forced to both prepare and practice contingency plans. As if dealing with this wasn’t enough, companies also have to navigate the choppy waters of government regulation.
The Government and Tax Incentives
The government issues tax credits for research and development in order to help companies lower innovations costs – and for companies that invest heavily in their own research and development – this can be a huge boost to business. State level credits are also increasingly becoming available.
In addition domestic production activities is a permanent deduction. While the calculation is complex, the result in increased cash flow through a reduced effective tax rate is significant.
It’s hard to predict precisely what the future of manufacturing will look like in the United States. After all, who could have seen the past 20 years coming? But we’re willing to bet that it remains a significant part of the US economy – as it still makes up for over 12% of our GDP. The real challenge will be consistently developing our workforce – less about training and retraining, but with a constant, ongoing education that will keep our workforce smarter and better able to meet the needs of tomorrow.