The world is poised for upheaval; manufacturing is a great hedge.
The future is unpredictable and chaotic, now more than ever. Political tension is at an all-time high. Government spending is out of control. AI technology promises to change labor markets, starting with white-collar knowledge-worker jobs. And international trade is being upended, even between traditional allies.
As I write, U.S. markets are plummeting in response to Trump’s “Liberation Day” tariff announcement. The Dow Jones Industrial Average, S&P 500, and Nasdaq are all down more than 10%, so far. It’s unclear how far they’ll fall.
Tariffs are complex and controversial. I’d rather not get into the weeds on why they might or might not make sense, or whether they are legal, or wise. I’m no expert, and smart people on both sides of the aisle seem to disagree. But whatever the long-term outcome, it’s going to be a bumpy ride. We can at least agree on that.
This isn’t the first disruptive event in recent memory. We all experienced the nightmare—and political tension—created by the COVID-19 pandemic.
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Amid all this insanity, I’m actually optimistic about one thing: the value of U.S. manufacturing. If there was ever a great time to be a manufacturer in the United States, now is that time.
Ignoring deficit spending and tariffs, manufacturing is still poised for dramatic macro change over the next decade. It’s no secret that the manufacturing workforce is aging. In 2020, nearly 25% of all manufacturing workers were 55 years old or older, according to study from The Manufacturing Institute. Meanwhile, some estimates suggest that the baby boomer generation owns nearly 40% of all small businesses, and that less than half of those have a clear succession plan. Many businesses will close their doors inside of the next decade as owners retire.
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Read the full article at The Fabricator
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