Marketing Group Digest

MATERIALS, ASSEMBLY, PRODUCTION & SUPPLY

Troy Gunnin
Sun Rep Inc.
Tampa, Fla.

Half of 2023 is behind us — let that sink in for a moment. Reflect on the roller coaster ride that has been the stock market, world affairs, the economy and our daily lives in general. Inflation is being stubborn and remaining high in spite of continued interest rate increases by the Fed. There is a sense of uneasiness, yet we seem to be going full steam ahead. This past Memorial Day weekend, more people traveled than pre-pandemic.

In the face of this, U.S. manufacturing is doing well. I just read an article in the May issue of Manufacturing Engineering that is very encouraging. The article, “All Aboard! U.S. Manufacturing’s Reshoring Course for Success,” points to some very positive signs for U.S. manufacturing. It states that manufacturing in the U.S. is on a roll, in no small part due to the growing “reshoring” trend of domestic companies moving operations and jobs back home. A record 364,904 manufacturing jobs were announced in the U.S. in 2022 through reshoring and foreign direct investment (FDI). That’s a 53 percent jump over 2021.

The growth is widespread, led by a huge surge in battery production for electric vehicles. Electrical equipment remained the top job creator by industry in 2022 followed by computers/electronics and chemicals.

The underlying trend is driven by the recognition that the total cost of offshoring exceeds that of sourcing domestically (or perhaps near-shoring to Mexico) and also reduces the supply chain venerability when depending on foreign sources, especially with the current geopolitical situation.

As independent reps, we look forward to this, not only as representatives for domestic companies, but because those same companies are also our potential customers.