COVID-19 has changed the world as we know it. We’re already experiencing economic and social changes that have been building over several months. And the projections tell us we may be dealing with these changes for a while. How will this impact manufacturing in the United States? Due to the pandemic, we may see supply chains shift back to the U.S., and more manufacturing companies may open soon. Let’s take a closer look.
Pulling Back from China
For a variety of reasons, US manufacturing may be pulling back from China, and more businesses will resume production here in the United States. The federal government may get this ball rolling. Still, companies will also need to reconsider the supply chain and work with more local or national companies to get their needed items rather than dealing with partners in other countries.
The Employee Pool
While unemployment is on the rise across the country due to the COVID-19 pandemic, there may be a silver lining in this perfect storm. Companies who want to restore their manufacturing may have better access to qualified individuals once production is up and running again.
Tax Breaks on the Horizon
The federal government is also looking at possible business loans and tax breaks for companies who are interested in transferring their production back to US soil. These economic benefits will encourage more people to shift their manufacturing.
This trend is already being seen in medical manufacturing. Since the beginning of the pandemic, there have been concerns with access to life–saving medical equipment, from PPE to ventilators, in hospitals. By encouraging US companies to transition from other manufacturing to the production of these products, we’re already seeing a significant shift in supply chains.
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