Part 2: Made in America research shows automation, technology investments help

Part 2: Made in America manufacturing on resilience, quality and cost insights

• Made in America research from WTWH Media (including Control Engineering, Plant Engineering) asked subscribers responding to the survey about manufacturing supply chain resilience and how made in American affects supply chain resilience.
• Made in America can help supply chain resilience and improve production lead times. Automation and technology investments will help.
• Made in America can help quality and investments may vary depending on price.

Made in America efforts can help manufacturing supply chain resilience, improve production lead times and can help quality, with investments in technology and automation, according to respondents to WTWH Media research. For the “Made in America and Reshoring Report,” Control Engineering and Plant Engineering publications conducted original research to study the impact of made in America and reshoring efforts on manufacturing competitiveness and resiliency topics. Among other topics covered in part 2 of this article are quality versus cost options and dedication to made in America investments at varied price points.

Methodology for the made in America and reshoring survey

The 2024 Made in America and Reshoring Report used an emailed survey to subscribers, producing 320 qualified responses during spring 2024, for a margin of error of +/- 5.5% at a 95% confidence level.

Made in America helps supply chain resilience, production lead times

Supply chain resilience is an area where “made in America’ efforts can help, according to 72% of respondents (Figure 1). Of that, 28% said made in America greatly enhances facility resilience; 44% said it moderately enhances supply chain resilience. Less than 7% said made in America reduces supply chain resilience.

Figure 1: 72% of respondents believe “Made in America” enhances facility supply chain resilience, in the spring 2024 “Made in America and Reshoring Report,” from Control Engineering and Plant Engineering. Courtesy: WTWH Media research

How does using a made in America strategy affect lead times for production? Among respondents, 43% said using a made in America strategy (Figure 2) reduces production lead times; 24% said there’s no change in production lead times; 19% said it significantly reduces lead times, 12% said it moderately increases lead times and 2% said it significantly increases lead times.

Figure 2: A “Made in America” strategy reduces lead times for production, according to 62% of respondents, in the spring 2024 “Made in America and Reshoring Report,” from Control Engineering and Plant Engineering. Courtesy: WTWH Media research

Made in America helps innovation; strengths, weaknesses of U.S. manufacturing

Innovation in manufacturing processes is positively supported by “Made in America,” said 71% of respondents (Figure 3); of that, 27% said it greatly fosters innovation, and 44% said it moderately fosters innovation. Those thinking it has no impact on innovation were 27%; just 3% said it hindered innovation.

Figure 3: Innovation and technological advancement for manufacturing processes improves with “Made in America,” according to 71% of survey respondents, in the spring 2024 “Made in America and Reshoring Report,” from Control Engineering and Plant Engineering. Courtesy: WTWH Media research

In U.S. manufacturing today, primary strengths (Figure 4) are high product quality (63), advanced technological innovation and innovation (56%) and research and development capabilities (52%).

Figure 4: Leading U.S. manufacturing strengths are high product quality (63%), advanced technological integration and innovation (56%) and research and development capabilities (52%), followed by a skilled workforce (41%), in the spring 2024 “Made in America and Reshoring Report,” from Control Engineering and Plant Engineering. Courtesy: WTWH Media research

Weaknesses or areas for improvement for U.S. manufacturing (Figure 5) include dependence on foreign raw materials (68%), high labor costs (66%) and lack of skilled labor (45%). Among other areas are regulatory burdens (39%), and tied at 33% outdated manufacturing technology and environmental sustainability challenges.

Figure 5: U.S. manufacturing weaknesses or areas for improvement are dependence on foreign raw materials and high labor costs, statistically tied at 68% and 66%, respectively. Lack of skilled labor was next at 45% followed by regulatory burdens at 39%, in the spring 2024 “Made in America and Reshoring Report,” from Control Engineering and Plant Engineering. Courtesy: WTWH Media research

Invest in technology, automation to improve U.S. manufacturing competitiveness

What could significantly enhance U.S. manufacturing competitiveness globally? By far, the leading three ways to increase manufacturing competitiveness are to increase investment in technology and automation (26%), enhance workforce training and development (22%) and reduce regulatory barriers (19%). See five other competitive enhancements (Figure 6).

Figure 6: Increased investments in technology and automation (26%), enhanced workforce training (22%) and reduction of regulatory barriers (19%) are the leading ways to enhance U.S. manufacturing globally, according to survey respondents, in the spring 2024 “Made in America and Reshoring Report,” from Control Engineering and Plant Engineering. Courtesy: WTWH Media research

Made in America can help quality; quality requires investments

Quality, another area where automation can help, is a concern for most of those replying (Figure 7): 48% said sourcing American-made components somewhat enhances quality; 31% said American-made components greatly enhance quality. No impact on quality was selected by 18%, and just 3% said American-made components somewhat diminish quality.

Figure 7: Sourcing American-made products greatly enhances quality for 31% of respondents and somewhat enhances quality for 48% of respondents, in the spring 2024 “Made in America and Reshoring Report,” from Control Engineering and Plant Engineering. Courtesy: WTWH Media research

Quality has a cost, said some respondents who said that higher prices could prevent switching to the American product. Because automation can improve quality and hold down cost in many applications, this data point becomes another justification for using automation (Figure 8). When an American-made product is equal in quality and features and less expensive, 75% said they definitely would switch and 18% more said they probably would switch.

Figure 8: Costs influence selection of American-made products. Perhaps not surprisingly, 93% of respondents said they definitely or probably would switch if products were less expensive; 51% said they definitely or probably would switch if American-made products were 10% more expensive; 31% said they definitely or probably would switch if American-made products were 20% more expensive, in the spring 2024 “Made in America and Reshoring Report,” from Control Engineering and Plant Engineering. Courtesy: WTWH Media research

At 10% higher cost, 19% would definitely would switch, 42% probably would switch and 29% might or might not switch, while 7% said they probably would not switch, and 2% more probably would not switch.

When the price is 20% more expensive, just 9% definitely would switch, 22% probably would switch, 34% may or may not switch, 25% probably would not switch, and 9% definitely would not switch.

More “made in America” content after subscribers asked

More than half of survey respondents said they would like to learn more about made in America topics. Control Engineering, Plant Engineering and Consulting-Specifying Engineer magazines responded by making an area on their websites for related “Made in America” content.

Mark T. Hoske is editor-in-chief, Control Engineering, WTWH Media, mhoske@wtwhmedia.com. Amanda McLeman, marketing research manager, WTWH Media, conducted the research.

KEYWORDS: Made in America, manufacturing automation, manufacturing efficiency

CONSIDER THIS

How does automation help with made in America help with supply chain lead times, strength and weaknesses, quality and costs?

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See part 1 for additional insights.

Original content can be found at Control Engineering.

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