America Since becoming President, Donald Trump has been working on the campaign of ‘Make America Great Again’. To promote local production in the US, Trump made a change in the tariff policy and now they are putting huge tariffs in all countries. But will Trump’s dream of establishing a large -scale manufacturing in the US come true? Here we will know what are the major challenges for the manufacturing sector in America?
The manufacturing sector of America is still in a very strong position, but still companies are facing many challenges that have a direct impact on its capacity. These challenges include major things such as heavy labor costs, workforce skill gaps, complications present in the supply chain.
Heavy labor cost
Labor costs in America’s manufacturing sector are many times more than many other countries and especially Asian countries. Due to which it becomes difficult for companies manufacturing in the US to compete in terms of prices. Apart from this, manufacturing will not be able to get salary in manufacturing compared to other sectors here. The biggest and important reason for running away from manufacturing in America is the labor cost here.
Workforce Skill Gap
There is a lack of technical and engineering expert skilled workers required for modern manufacturing in the US. This workforce skill gap is the result of reasons such as lack of manufacturing sector jobs in the last few decades, lack of training and special focus towards other sectors.
Complications present in the supply chain
America’s manufacturers are dependent on the global supply chain, which may be complicated as well as sensitive to problems such as epidemic, natural disasters or business stress. Due to high dependence on foreign suppliers, not only can production take a lot of time comparatively, but it can also increase the transportation costs significantly. Not only this, it can also cause many difficulties in ensuring the quality and consistency of the product.
These are the main reasons why many companies do not want to manufacture in America. In addition, there are many other reasons that prevent companies from starting construction in the US. This is the reason that major American companies like Tesla and Apple themselves manufacture in other countries.
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