The world has changed a lot over the last eighty years. The way we function as a society will continue to change until the end of time. Every year, we have become more and more efficient as people and as a society. We will only continue to become more and more efficient with our time as we continue to create and build various things with the technology around us. This technology has allowed the entrepreneurial spirit to flourish creating increased profitability not only for companies but for individuals as well. From plumbers to CEOs, everyone is becoming more and more efficient as the landscape of individual workflow changes. What does this mean?
In the early 1940s, roughly 4 out of every 10 individuals worked a manufacturing job within the United States. When we look at the share of manufacturing jobs today, manufacturing accounts for just 8% of the total job market. How can this be? How can we still have the world’s greatest economy with a diminishing manufacturing job market? The answer is simple. There has been an increase in productivity. We have become more and more efficient as time has gone on.
Since late 2021, manufacturing construction spending has doubled within the United States. This is mostly due to initiatives and government programs offering direct funding and tax incentives. Most of this growth stems from computer, electronic, and electrical manufacturing, particularly semiconductor plants. As of July 2023, this sector represented 55% of manufacturing spending, compared to an average of 12% from 1993 to 2021. This is partly due to the increased demands of higher computation regarding the likes of AI and quantum computing. This will continue to lead to increased efficiency. This increase could raise global GDP and promote increased economic expansion not only for the economy but for businesses too. Corporations will continue to lower costs and become more competitive, maximizing the available capacity of individual operations. In turn, it provides more robust growth for the economy as a whole. These newfound levels of efficiency will bring improved performance, and a better financial position for not just them, but for you too. So don’t worry, manufacturing isn’t going anywhere.
