Manufacturing sector in United States attracts huge investment, which results in creation of new industries and careers in the manufacturing sector of the country.
The U.S. manufacturing sector has come up with a large numbers of innovations. According to statistics, more than 90% of all U.S. patents registered annually are of new inventions in the manufacturing sector.
Manufacturing policy of the United States of America was announced by the U.S. Department of Commerce (DOC) in 2004. There were two briefings in Cleveland and Washington before the publication of the policy. Based on only the U.S. manufacturing sector, the country is considered to be the fifth-largest economy in the world.
Manufacturing policy report published by the DOC includes a number of programs to support small and medium sized manufacturers across the country. The aim of the policy taken by the US Government is to help manufacturers of the country to compete in the current scenario of global economy. For this purpose, the government plans to introduce a “Manufacturing Impact Statement” on various regulations of the government. The government also plans to have a regulatory review of all medium and small businesses across the country.
Manufacturing Initiative in the United States of America began in March 2003, when various issues regarding the manufacturing sector of the country were addressed by Donald Evans, the U.S. Secretary of Commerce at a speech to the National Association of Manufacturers in Chicago. Following the speech decision was taken to review the issues affecting the competitiveness of the US manufacturing sector.
President Bush also introduced a six-point plan for solving the problems faced by the American manufacturers and manufacturing workers. The points included into his growth agenda are:
- To make healthcare costs more affordable
- To reduce the lawsuit burden on the U.S. economy
- To ensure an affordable, reliable energy supply
- To streamline regulations and reporting requirements
- To open markets for American products
- To enable families and businesses to plan for the future with confidence
According to the President, each of these reforms would be beneficial for improvement of the competitiveness of manufacturing sector of the United States of America.
Manufacturing policy of the United States of America deals with challenges faced by the business houses. Some of the challenges faced by the manufacturing sector of the country are:
- Competing and winning in a global economy
- Compensation and employment
- Cyclical effects of recession and recovery
- Structural changes shaping competitive environment
- Role of technology
- Lowering barriers to trade
- Emergence of new competitors
- Shift towards global outsourcing
The policy also deals with other points like:
- Identifying the challenges facing American manufacturing
- Need for stronger economic growth at home and abroad
- Reducing costs that erode competitiveness
- Rising healthcare costs
- Need for tort reform
- Reducing regulatory costs
- Rising energy costs
- Reinforcing America's technological leadership
- Education and skills
- Communities and economic development
- Leveling the international playing field
- Economic and trade policy and manufacturing interests
- Concerns regarding the trade deficit