4 MIN. READ
COVID-19 and the economy are inextricably linked and are foremost among the concerns of many Americans. In order to restart the economy, the virus must first be contained, according to leading medical experts. Only then can the economy restart and reboot safely.
According to the results of a recent Morning Consult poll, 90% of registered voters indicated that they believe the manufacturing sector to be vital to the American economy and the job market.
Is that correct? And, if it is, how can we unpick Americans’ concerns around COVID-19 and manufacturing, as we consider their mindsets in the run-up to the election?
According to the Statistics
The National Association of Manufacturers (NAM) supports these poll results with the findings of their own annual manufacturing survey:
• Manufacturers are responsible for nearly 62% of all private-sector research and development. Manufacturers in the pharmaceutical industry top the list of research and development contributions, with a nearly $90 billion spend in 2019.
• Manufacturing jobs are economic stimulators. As a result, each dollar spent on manufacturing adds an extra $2.74 into the economy. Moreover, each manufacturing job creates five additional jobs—as suppliers, transportation, warehousing and sales workforces all benefit from manufacturing.
• Manufacturing employees earn, on average, nearly 27% more per hour than the average wage earner. Calculating both wages and benefits, the average manufacturing salary is approximately $88,406 per year, representing a solid, family-sustaining income.
• Deloitte, in conjunction with NAM, estimates that 4.6 million manufacturing jobs will be required over the next ten years to support American companies. Unfortunately, due primarily to a skills gap between the job knowledge in the talent pool and the job knowledge required for manufacturing, 2.4 million of these jobs will likely go unfilled.
Manufacturing Hurdles
While the Morning Consult poll indicated Americans’ belief in the manufacturing sector, a recent Forbes article argues that the COVID-19 crisis has highlighted the need for the nation, now more than ever, to overcome obstacles that hinder the growth of this vital sector.
Nowhere is this need more apparent than in the pharmaceutical industry, which is striving to develop medications to fight the virus; the machinery manufacturing industry, which supplies the ventilators that so many of our lives depend upon; and the clothing manufacture industry, which is providing the personal protective equipment that Americans need to stay safe.
The Skills Gap
As noted in the NAM survey, if not addressed, the skills gap could adversely affect the manufacturing sector’s ability to drive forward US economic recovery. As technology increases in such areas as warehousing, transportation and manufacturing, a more highly-skilled workforce is required to keep pace.
The Manufacturing Institute estimates that companies will spend over $26 billion in 2020 to close this skills gap.
Solutions include company training programs, contributions to workers’ educational funds, apprenticeship programs and aggressive recruiting efforts.
The Supply Chain
As shipping prices lower and, as the cost of labor abroad is often less than in the US, many large manufacturing companies have moved portions of their supply chains overseas.
The jobs that have moved have mainly involved repetitive, low-skilled work, which has made their offshoring enticing to shareholders.
However, as the pandemic shuttered factories in China and other low-wage countries, and as shipping slowed to a crawl, many companies found themselves unable to obtain the basic supplies they needed to create their final products. American manufacturers have, as a result, widely begun to rethink their policies around the offshoring of low-skilled labor. The rise of the potential for robotics to take over mundane functions such as these adds further fuel to US manufacturers’ interests in reshoring their supply chains.
“The Manufacturing Election”
The Morning Consult poll dubbed the coming US general election, “The Manufacturing Election,” not only due to the importance that American voters are placing on the manufacturing sector when they consider the economy this election, but also due to the importance that this election will have in shaping the future of American manufacturing.
In the United States, it is of course the case that policy and funding from all levels of government are set from the top down. Everything from foreign trade policy to local economic revitalization depends, to some degree, on public funding.
Businesses large and small throughout the United States, therefore, recognize the importance of their votes in the upcoming November 2020 election. Many companies, accordingly, have joined “Time to Vote,” a nonpartisan coalition of companies dedicated to helping their workers all exercise their right to vote.
Participating companies are offering flexible leave, fewer meetings on Election Day and assistance in procuring absentee ballots, to ensure that their employees can participate in voting when the day comes. Many large manufacturing companies, from ABC Carpeting to ZZ Driggs, have enrolled in the “Time to Vote” program.
With the pandemic still fresh in the minds of all Americans, as children return to school and their parents return to work, the US manufacturing industry continues to work at full pace to keep everybody safe during these times.
Whether voting online, in-person or by postal vote, American voters will be casting their ballots this November. Let’s hope that when they do, the voters take a moment to consider their safety, with the US manufacturing sector at the forefront of their minds.
At MNI, Our goal is to help your business thrive, so whether you’re looking to advertise your products and services to manufacturers, needing to find new suppliers, or are looking to reach out to decision-makers in the manufacturing world, our industrial solutions are here to support your mission.
Article Sources:
[i] https://www.usnews.com/news/elections/articles/2020-03-23/fixing-the-economy-and-stopping-the-coronavirus-pandemic-will-require-swift-action
[ii] https://morningconsult.com/opinions/2020-will-be-the-manufacturing-election/
[iii] https://www.nam.org/facts-about-manufacturing/
[iv] https://www.forbes.com/sites/lisacaldwell/2020/09/28/five-burning-election-issues-for-manufacturers/#2a7eaa7fe275
[v] https://www.cnbc.com/2020/01/17/manufacturers-to-spend-26point2-billion-on-upskilling-workers-in-2020.html
[vi] https://www.supplychaindive.com/news/coronavirus-forces-supply-chains-rethink-sourcing/575648/
[vii] https://www.maketimetovote.org/
[viii] https://www.prnewswire.com/news-releases/hundreds-of-companies-join-forces-make-time-for-workers-to-vote-in-2020-election-301007518.html
