Manufacturing in the U.S. continues to be a major part of the economy. Although there are more jobs in the service industry, manufacturing remains a major source for middle-class income, according to the Wall Street Journal. Employees in the sector make an average of $36.37 an hour, while service workers earn about 5 dollars less. Despite the setbacks that have hit the industry because of offshoring, manufacturing in the U.S. has been rising steadily since the recession. Many of the jobs returning to America have been computer-oriented, requiring experience with machines that many people who previously worked in the industry never developed. A new generation has begun attending trade schools in order to pick up the skills necessary to earn a living in manufacturing.
President Obama is also making a major point of expanding the industry's presence in the U.S. by creating hubs where companies can build factories and recruit new talent.
Incentives for manufacturing in the U.S.
The biggest reasons for companies to build in the U.S., the Journal reported, is that much of the research being conducted on manufacturing solutions is happening here already, so that it's easier to find solutions in this country than another. Additionally, whenever people buy goods made in the U.S., they are adding money to areas of the economy that have to do with raw material production, which raises the gross domestic product overall. Buying U.S. products also lowers the trade deficit that has been in existence since the mid '70s.
Because the U.S. stands to benefit so much from moving factories back to this country, the president has been creating hubs for manufacturing that will help to incentivize production in America. One such hub is in Michigan, which in the past has been a major car producer. According to the Livingston Daily, Obama announced a $259 million Institute for Advanced Composites Manufacturing Innovation that will be anchored in Knoxville, Tennessee, but have partnerships with other states in the U.S., including Michigan. The group will work together to make better materials for cars and other machinery that was once routinely made in the U.S.
There is also a center in Detroit called the American Lightweight Materials Manufacturing Innovation Institute. There will be a ribbon-cutting ceremony on Jan. 15, 2015, and is expected to assist U.S. companies in making new materials for such parties as the U.S. military.