American Manufacturing and the Importance of the CNC Manufacturing Process

In 1998, American manufacturing employed 18.1 million people and accounted for 11% of the US work force¹. In 2022, employment in the Domestic Manufacturing industry had declined to just 12.3 million people². This decline in manufacturing had a significant effect on gross domestic product: In the 20-year span of 1998 to 2018, the total GDP increased 47%, however the manufacturing sector increased just 5%¹, which is much slower growth than total GDP. However, with the passage of two key pieces of legislation, the resurgence of American manufacturing is taking shape.

The Resurgence of American Manufacturing

We recently reported on the Resurgence of American Manufacturing and discussed the major benefits that bringing back American manufacturing jobs can have for the US economy. This resurgence has been augmented by new laws that will drive the return of American manufacturing. This includes the 2022 CHIPS and Science Act³, and the 2022 Inflation Reduction Act⁴. Both of these laws contain provisions that benefit US companies that reshore their manufacturing to the United States, and domestically produce products and product components.

CAD/CAM Will Become Even More Important

Computer Aided Design & Computer Aided Manufacturing (CAD/CAM) will become more important than ever before. The key to the successful reshoring and scalability of American manufacturing can best be accomplished through high-tolerance automation, efficiency, and advanced technical skills. This utilizes high quality manufacturing equipment and sophisticated processes. At the heart of this is the CNC Machine, which continues to grow in importance.

The American manufacturing industry's investment in CNC machines is growing, and manufacturers can take advantage of the cost savings accrued by the use of CNC machines to turn raw materials into final products⁵. CNC machines are faster, cleaner, more efficient, and safer than their older manual counterparts, and they provide products with tolerances as tight or tighter than a manually machined piece⁵.

New American Manufacturing Facilities Are Under Construction

The reinvestment in domestic manufacturing has shown a dramatic growth in a very short timeframe; according to the Federal Reserve of St. Louis, spending on construction related to manufacturing facilities was $98.7 billion in Jan 2022, and it has grown sharply to $238.2 Billion by the end of August 2024⁶. The manufacturing renaissance is underway, with major investment in new modern factories that will be cleaner, safer, and more efficient thanks to advanced technology like the CNC Machine.

What Does This Mean For American Manufacturing Jobs?

With such a massive reinvestment in American Manufacturing signed into law, and the immediate re-centering of priorities on building new factories for domestic manufacturing, the industry is poised for a renaissance. And this will translate into a need for people who are skilled in many facets of the advanced manufacturing process. For a subject like computerized manufacturing, future technicians will need to develop their skills on industry standard equipment under the guidance of expert-level machinists. The time to enter this field is now.

References:

¹ "The diminishing role of manufacturing in the American economy" from https://usafacts.org/articles/diminishing-role-manufacturing-american-economy/#:~:text=while%20total%20GDP%20increased Updated on Fri, October 16, 2020. Retrieved on October 2, 2024.

² "Facts About Manufacturing Infographic" by the National Institute of Standards and Technology at https://www.nist.gov/mep/manufacturing-infographics/facts-about-manufacturing. Last updated June 7, 2022. Retrieved on October 2, 2024.

³ "2022 CHIPS and Science Act" from https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/09/fact-sheet-chips-and-science-act-will-lower-costs-create-jobs-strengthen-supply-chains-and-counter-china/. Published on August 9, 2022. Retrieved on October 2, 2024.

⁴ "Inflation Reduction Act of 2022" from https://www.whitehouse.gov/cleanenergy/inflation-reduction-act-guidebook/ Last Updated on September 21, 2023. Retrieved on October 2, 2024.

⁵ "CNC Industry Trends 2024: Embracing Evolution in CNC Machining" from https://www.gotomorris.com/news/cnc-industry-trends-2024/#:~:text=Market%20Growth%20Projections Published January 22, 2024. Retrieved on 10/10/2024.

⁶ U.S. Census Bureau, Total Construction Spending: Manufacturing in the United States [TLMFGCONS], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/TLMFGCONS, October 3, 2024.

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