Nationally, things are brightening up for this major sector, according to economists at HIS Global Insight and Moody’s Analytics. They expect manufacturers to add about 330,000 more jobs this year, which admittedly won’t make up for the 6 million jobs the nation lost since 1997. The numbers would be higher were it not for automation and other productivity-boosting changes. But they would also be lower were it not for the fact that it costs more to make things in China and ship them back here.
That’s why Caterpillar chose to build a $120 million excavator manufacturing plant in Victoria, Texas instead of Japan. Consequently, “North American customers will get faster deliveries, and the Japan plan can devote more capacity to the booming Asian market,” reports a recent Wall Street Journal article. Why Victoria? “In return for creating 500 jobs in Texas, Caterpillar also got incentives from state and local authorities, including tax breaks and 320 acres of free land,” the article stated.
But the news isn’t all good. Although computer-controlled machines and other technologies cut into job growth, manufacturers might have a hard time finding people to fill the jobs they create. First, the share of skilled workers nearing retirement is swelling, according to Boston College’s Sloan Center on Aging and Work. Second, unlike other businesses, manufacturers are less likely to involve employees in day-to-day decisions.
