Contract Manufacturers Are Crucial to US Economic Recovery

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Small Job Shops and Contract Manufacturers Are Crucial to US Economic Recovery

American manufacturing has been one of the few bright spots of the economic recovery. Since February 2010, the industry has added more than 400,000 jobs. One of the most significant contributors to industry growth has been small job shops and contract manufacturers. With roughly 98 percent of American manufacturing firms classified as a small business, this industry has become crucial to the health of the US manufacturing industry.

Why are small job shops and contract manufacturers helping fuel the manufacturing (and economic) recovery? Because contract manufacturing is a highly skilled trade that requires knowledge of complicated machining and fabricating techniques. Additionally, the United States still maintains a competitive advantage in terms of quality of work and trade skill.

But job creation isn’t the only benefit that contract manufacturers deliver. Working with a domestic custom manufacturer can also help grow partner revenue. A recent study of supply chain access found that working with a domestic manufacturer can help grow revenues by more 250 percent. The drivers behind that revenue growth? Increased supply chain visibility, lower transportation costs and higher quality of product

If we want to continue the upswing in American activity, we need to support our domestic contract manufacturers and continue to source locally. We need to make sure that the surge in Made in America activity doesn’t fall short. Doing so will help the country create jobs, while driving revenue for the companies that contract with them.

 

About the author: Derek Singleton graduated from Occidental College with a degree in Political Science. He is an ERP Analyst at Software Advice, an online resource that reports on technology, topics and trends in the manufacturing industry.

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