Tag : us manufacturing

Manufacturing Sector

Is US Manufacturing Making a Profit?

Many people view the manufacturing industry in the US as one that is untouched by technological changes. This skepticism has led to some questioning whether the manufacturing industry is making a profit in this era.

Addressing concerns on the decline of the manufacturing industry in the US

The manufacturing industry experienced a major hitch during the recession, with more than 5.8 million workers losing their jobs between the years 2000 and 2010. While the 2007-08 recession played a major role, many attributed this to the automation and the introduction of robotics in the manufacturing industry, some thought that this was a sign of the slow growth of the US economy and that the US was losing its grip to support its population.

According to the IMF, the decline does not necessarily indicate a shift in the industry’s size. Instead, sector inequality is what is bringing about this concern. In a recent IMF report, Bertrand Gruss stated that “the decline in manufacturing need not be a source of concern as long as the policy mix is right.”

Though the industry has gone through dark times in the recent past, data from the US Census Bureau shows that it is making profits, with the first quarter of 2018 having a $154 billion, up from the $117.6 billion that had been realized in the last quarter of 2017.

Manufacturing trends behind the industry’s current profits

Labor automation
The use of CNC manufacturing has played a major role in the success of this industry. While this is no magic wand, it has made manufacturing companies more competitive. Automation of processes and the use of digital machines has led to increased productivity as tasks that were done manually at higher costs, and less accuracy are now automated. This has led to a significant drop in manufacturing jobs, but its benefits far outweighs the challenges. Through an efficient production process manufacturers realize an increased output which ultimately leads to increased profits.

Machine outsourcing and leasing
Automation has not come without its fair share of challenges. These human-capacity-saving machinery in most cases have extremely high upfront costs. However, any company can now walk into an Original Equipment Manufacturer and lease any machine. This, coupled with the many financing options has given the industry a major boost. Finance companies are offering to settle not only the machine’s cost but other soft costs such as its installation and freight.

Rising demand
The US remains to be a lucrative market for manufactured items. This has continued to lure both local and international manufacturers to open companies in the US. The streamlining of global logistics has opened up this industry to the world. Technological innovations have made the moving of products and services faster, cheaper, and easier. As such, manufacturers have increased their visibility to potential clients not only in the US but all over the globe. This has seen the demand soar especially in emerging economies. With the increased demand, manufacturers have doubled their output capacity, which explains their profit story over the last few years.

Further, the rise in global demand has led to US manufacturers seeking international allies. In most instances, the US manufacturer works on the design and the products’ functionality while the international partner manages distribution in the country they are in. This has also enabled the manufacturers to widen their global reach and maximize their revenues.

The rise in industry technologies
Manufacturers can now efficiently source for raw materials or deliver their finished products anywhere in the world. They can now have multiple facilities all over the globe, as opposed to the past where facilities were set up depending on the raw materials’ proximity. Through cloud connectivity, such facilities can sync data which is accessed by each facility in real-time.

Evolution in the precision manufacturing sector has made manufacturers maximize their production output, increase the machine’s running times, and reduce downtimes. Through design and simulation tools, manufacturers can validate the products’ design before the final production. This results in the production of perfect products and reduced design time.

Increased diversification to service provision
The integration of automated systems in the production process has necessitated that there be a constant support for optimal efficiency. Case in point is IBM, which actually sells more services than goods. Many Denver manufacturing shops also offer services that are meant to help companies maintain and upgrade their machines. This has led to diversification and eventual realization of profits.

The future of the manufacturing industry in the US

Concerns on whether the US will be able to recoup its position as a leader in the manufacturing industry continue to be a significant bone of contention. The US population is also waiting to see whether the current administration will deliver its promise, that is, ensure that the low and middle-class workers get their manufacturing jobs back. Besides, everyone wonders what impact increased manufacturing automation have on the workforce in the long run.

All indicators show that the manufacturing industry is experiencing a resurgence, and focus is shifting to policies that will accelerate this growth.  Policies such fewer government regulations and investment in infrastructure geared towards enhancing manufacturing are expected.

While manufacturing jobs are returning to the US, it will be necessary for any machine shop Denver, to employ the same skills that were applicable a few years ago. As a result, we will see more efforts from government agencies and corporates to bridge the skills gap. The curriculum also has to be adjusted and relevant programs introduced to ensure more skilled labor is available.

Also, no CNC machinist is going out of business as technological innovations lead to production efficiency and the production of high-quality products. Undeniably, we can only expect more automated processes. This will further be influenced by the evolution of the Internet of Things. We can expect advancement in M2M applications, 3-D printing, and AI equipment. It is hard to find a custom machine shop that is not making use of such technological innovations for products with multiple customization options and fewer flaws.

The manufacturing industry plays a major role in the US economy. Increase in efficiency due to automation will ultimately lead to increased production, time-saving, reduced downtimes due to the use of smart machines will all lead to higher profit amounts and a healthier economy. While these changes are welcome, they will lead to changes in the workforce and better products.

Education concept: Helpful Tips with optical glass

Tips for Choosing a CNC Machining Partner

While the US machine manufacturing industry continues to grow rapidly, choosing the best strategic partner for your CNC machining can be quite challenging. However, this process should not be that difficult if you have the correct pieces of advice beforehand. Below are some machine shop tips that you might want to put into consideration when sizing up for the best service provider.

#1: The Technology in Use

The power of technology cannot be underestimated in the engineering and manufacturing sector. Therefore, it is an excellent idea to know the type of technology in use in your preferred machine shop. While there are many companies out there relying on standard technology, this could be a constraint when it comes to both design and machining. That is why it is paramount to work with a manufacturer who is fully automated and equipped with all the necessary precision tools and equipment. At Tag Team, we have heavily invested in Computer Numerical Control (CNC) manufacturing that allows us to deliver precise component machining to our customers. Additionally, this revolutionary approach to manufacturing helps us to achieve zero-defects because once your design is fed into the computer; our CNC machines can repeat the production process multiple times. This also helps to lower lead-time.

#2: The Expertise of the Staff

Sometimes you may go with a price that you think is good only to end up with a component that does not conform to your print or assembly. In other cases, your project may be delayed, and the excuse the manufacturer tells you is “your component design is too complex.” Therefore, you need to be vigilant when dealing with machine shops and only work with a company that has a reputation for interpreting designs and prints accurately and delivering projects on time. At Tag Team Manufacturing, we have created a work environment where our machinists make a long-term career. We know very well that expensive equipment and software are worthless if they are not coupled with qualified and experienced staff to deliver quality services and meet the exact customer specifications. In fact, the vast majority of our machinists are US manufacturing schools graduates and can handle all complexities relating to components design and implementation.

#3: Range of Materials and Services

Choosing a manufacturer who offers diverse metal machining services can save you a lot of time and paperwork. Consider a case scenario where you want a design component that has to incorporate several metals or materials. Definitely, it would be much more convenient to outsource to one manufacturer than several of them for a single project. That is why we at Tag Team Manufacturing have CNC machining for a variety of materials including plastic, stainless steel, aluminum, copper, brass, carbon steel, and most alloys. Besides, we have an extensive network of support vendors who provide brazing, plating, heat treatment, painting, and welding among other services.

#4: Relationship Sustainability

For those considering to enter into an Original Equipment Manufacturer (OEM) contract with a CNC machining firm, you might need to evaluate the sustainability of the relationship. First, put into perspective whether the manufacturer has the requisite CNC automation to meet your demand and needs. Second, the machine shop you want to enter into a contract with should protect your business interests and keep the requirements of the end-users in mind. That being said, Tag Team has an excellent reputation for producing components for EOM’s in almost all industries. Our production capacity is about 50, 000 components annually, which means we can meet your demand without compromising on quality. In addition, we protect the interest of our clients, as we do not publicize our relationships with EOM’s who buy components from us.

Precision Machine Shop

Things to Look for When Hiring a Precision Machine Shop

People should look for several items when they are choosing a precision machine shop to make certain that they make the right choice.

Communication Skills
The person in the shop that you are telling about your job or project should have great communication skills. They should be skilled at their job and know what the others in the shop can accomplish. If this person is experienced, they will also have questions for you to help you to describe your job in as much detail as possible. Great communication is the first skill to look for, because if you and the shop manager are not on the same page, your project may not come out as you saw it.

Innovative Technology
A good precision machine shop is only as good as the available technology they use and it is based on the technician’s knowledge to use it. Research what types of equipment are needed to manufacture a prototype of your project. Then ask what types of equipment the machine shop uses such as CNC Machining, Manual Machining and Wire EDM. Also, ask if the process uses more than one type of machining for the run. The machine shop should also be able to have certified technicians to run the software available for the process so they can implement any changes in the design that you may ask for. Shops with the latest technology are forward thinking and will learn and implement new processes to keep up with the rising technology needed.

References and Samples of Work
A great machine shop will have a project book with photos of some of their past work along with the customer’s names and phone number and won’t be afraid to share these things with you. If they don’t give you references or explain past processes, they may be hiding something about their performance from you. The project book should have their most difficult jobs that they completed in it to show how capable the machine shop is in their business.

Flexibility
Machine shops that are proficient in their work will have some sort of process to allow flexibility in the project while it is underway. They should report to you at certain steps of the process to make certain they are on track and be able to change things if it isn’t to your specifications. This helps to get the first prototype correct and sets in place the specifics for a full production run of your products. If they don’t have a schedule set up, you may want to look elsewhere for a precision machine shop that is more compliant.

Quality Control
All machine shops should have a quality control inspector, whether in-house or out of house to ensure that your project meets all of the specifications that it should. They should be willing to talk about their quality certifications such as ISO 9001 and AS9100 standards and share with you what types of equipment they use to ensure the standards are met.

Looking for these items will help you to find a quality precision machine shop that you can use for prototypes, parts and projects of any size to successfully fulfill your wishes and demands.

high-speed machining

High-Speed Machining: What Is It and How Does it Help?

According to the US mechanical engineering schools, high-speed machining can be defined in two different ways. However, the most commonly used definition is based on the relative surface speed between the workplace and the CNC manufacturing tool. This definition is primarily a thermo limit since most of the CNC mechanisms depend on temperature. According to surface speed definition, high-speed CNC machining is favored by metal cutting researchers and toolmakers from US manufacturing department.

Researchers and tool makers define high-speed machining by indicating the range of a transitional region which is yellow, conventional machining region which is green and high-speed region which is red and depend on surface speed. The surface speed is in meters per minute, and its equivalent to v=πdn where n is spindle speed and d is the diameter of the milling work piece.

The second definition which is widely used by mechanical engineering schools is the DN number that is centered on the rotation capability of the loaded spindle bearings. D is the diameter in mm of the larger bearing bore, and N is the spindle speed in rpm.

High-Speed Machining Principles

High-speed machining operates on several principles. Keep in mind that not every type of machining will benefit from HSM, but most applications could from HMS with implementation of CNC automation and assumptions. Below are high-speed machine principles.

CNC machine
Tool holders
Cutting tools
CAD system
CAM system

How Does High-Speed Machining Help?

Every machining shop desires high productivity and improved machining process. Machinists make complicated metal parts, shapes and need to run complicated programs to help them provide good services to their clients. Machinists use high-speed machining to make their work faster and easier. Here are some benefits of using high-speed machining.

Reduced Energy or Heat Loss

High-speed machining helps in increasing the rate and speed of material cutting which reduces excessive heat loss and transfer. When you reduce heat transfer, turnaround time and transmission are kept low which lowers energy consumption. Traditionally, time was provided for metals to cool down and form a hardened metal but in this case, the coolant is used in metal cooling which reduces heat loss and increases the speed of production since less time is spent on cooling.

Increased Productivity Rate

High-speed machining has driven manufacturers and machining shops to higher rates of productivity. Faster productivity rates mean the machines can produce more parts in a short period. However, the functionality of high-speed machining is often affected by the ability of the cutting materials themselves. Manufacturing in USA prefer the use of faster cutters since their productivity is high.

Even if all cutters are faster, the results produced by cutters of different materials are unique. For instance, diamond, ceramics, HSS, tungsten carbide and cermets cutters all provide different outputs. High-speed cutting tools can take a lot of time and may even lead to stress. The main problem that is associated with high-speed cutting tools is that they don’t manage heat effectively and require a coolant.

Machine Shop

History of Machine Shops

A machine shop is a specialized room, building, or big company where CNC machining and other types of machining are done. The activities that take place in such a shop involve experts/machinists using various machining tools and cutting tools to come up with different parts. People tend to think that a machine shop must be a massive building with complex equipment but this isn’t true.

A typical machine shop can either be a portion of a large factory or simply a small store such as a job shop. The various parts manufactured are usually sold to multiple lines in the US manufacturing industry, car industry, and even the aviation industry. The production of these critical parts typically involves cutting, shaping of the parts, drilling, and finishing.

History of Machine Shops

The history of machine shops can be traced back to the 19th century when the first mechanical engineering schools started to come up in the U.S. The first machine shop appeared around this time. It is also during this time that the industrial revolution was at its peak and there was a high demand for various parts. Before this era, critical parts and tools were mainly produced in local workshops in villages and cities. However, the production was limited to small-scale, and the parts were primarily sold to local CNC manufacturing artisans.

Production of parts in large factories took place on site where every part was produced individually. As time passed by, the plants started to come up with their workshops to deal with the production of the required parts. During those days, the textile was still the dominant raw material.

After the 19th Century

Further developments in mechanical engineering CNC machining took place in Germany, Scotland, and England after the 19th century which led to the development of cheaper and simple techniques for the massive production of steel. This development triggered the rise of second industrial revolution which played a significant role in the electrification of factories, mass production of parts, and also an uprise of more US manufacturing schools.

Machine shops gained popularity around this time as they were commonly referred to locations where complicated mechanical parts are cut to the required size and carefully put together to form complete mechanical units.

However, the rise of the machine shops came along with its fair share of both manufacturing and organizational problems. This triggered the emergence of various theories and publications trying to solve the problems.

One of the earliest publications in the field of mechanical engineering which gained a lot of popularity was a series of books titled; “Modern machines_ Shop economics” that was authored by Horace Lucian.

20th Century

The beginning of 20th century saw an increase in the number of publications relating to machine shops with various authors including Frederick Winslow Taylor and Howard Monroe More funds were directed towards research and invention which led to the invention of the electric motors in late 20th century.

The electric motors took over power supply of the common machine tools from the conventional mechanical belt. This era also ushered in CNC automation and numeric control in the field of manufacturing in the USA. The two aspects production design and primary production became integrated.

American-Made Products

Popular Products Manufactured in the U.S.

Have you ever bought something because it read the label, “Made in the U.S.A.“? We’ve all been there. We all like American-made products and we value what’s constructed in our own country. Although the number is increasing, not a lot of products are made in the U.S. In fact, about 50% of the products we use are made in China. However, America is trying to even the playing field. With our increased knowledge of mechanical engineering and the US manufacturing schools available, more and more products involve manufacturing in the USA.

Furthermore, a new technology has advanced over the years — CNC machining and manufacturing. CNC manufacturing is a manufacturing process where a pre-programmed computer controls tools and machines. This is done through CNC automation, where computers and machines do all the work for us. This has created a mechanical engineering breakthrough leading to more excitement surrounding the United States manufacturing industry. But since China still makes over half of the products we use, what’s manufactured in the United States? See below for a list of the most popular products made on U.S. soil:

-Primary Metal
-Machinery
-Transportation Equipment
-Weber Grills
-Tesla Roadsters
-Harley Davidson Motorcycles
-Whirlpool Appliances
-KitchenAid Mixers
-GE Hot Water Heaters
-Stihl Gas-Powered Equipment

From machinery to kitchen mixers, the United States still makes some of the more important products that we use in our everyday lives. And with CNC manufacturing leading the way in mechanical engineering, machines are working smarter and more effectively. In addition, education for the mechanical industry is getting better year after year. Mechanical engineering schools are popping up everywhere and more people are realizing the importance of these skills.

Increased Productivity and Lower Costs Lead to US Manufacturing

With more and more products being manufactured in the United States, there has to be a reason why our production efforts have increased. One of them is our productivity. American workers have been proven to be more productive in the workplace. They are paid higher than employees are in other countries and the work environments are more enjoyable. With child-labor issues happening in China and other countries, more people choose American-made products for that reason alone. Another cause for increased U.S. manufacturing is shipping costs. Every day, it is getting more expensive to export materials from one country to the next. In order to save on costs and produce high-quality, dependable products, many manufacturing companies are choosing the United States are their hub.

The U.S. Prefers American-Made Products

The average American will choose an American-made products over one that’s produced in another country. Although China leads the pack for most of the products we use, that number is starting to decrease. One reason for the change is CNC manufacturing. As our technology gets more advanced, CNC automation and machining is growing in popularity. From production benefits to saving on costs, CNC manufacturing is here to stay.

If you’re looking for a professional, modern manufacturing company you can depend on, Tag Team Manufacturing is the company for you. We’ve been in business since 1987 and we specialize in machining CNC precision components for OEM’s in a wide range of different industries. We work with engineers to design effective materials that work properly and that last for many years to come. If you would like to learn more about Tag Team Manufacturing, don’t hesitate to give us a call today!

ISO 9001

What is ISO and What are the Steps to Becoming ISO Certified?

ISO 9001 originated from the conglomeration of two different organizations namely United Nations Standard Coordinating Committee (UNSCC) and International Federation of the National Standardizing Associations (IFNSA) in 1946 when over 25 nations convened at the Institute of Civil Engineers in central London.

ISO (International Organization for Standardization) creates all the essential documents that provide specific guidelines, requirements, specifications, or characteristics that are used to ensure that materials, processes, products, and services are highly fit for their purpose. The body has published over 22025 International standards which can be purchased from the ISO store. The standards cover all sectors including manufacturing in USA, mechanical engineering schools, and even CNC automation.

The ISO 9001 standards bring real and more measurable benefits in various sectors since the standards underpin the technology most industries rely on and ensures quality is adhered to in every stage of CNC machining and CNC manufacturing. Some of the benefits of being ISO 9001 certified include improved efficiency and cost savings, widened market potential, higher level of client service which leads to higher customer satisfaction, and compliance with procurement tenders.

What Are the Steps to Becoming ISO 9001 Certified?

Obtaining an ISO certification for US manufacturing schools or any other industry player requires a significant investment of time, effort, and money. This is a process that will take some time to complete. Below are the essential steps to be followed while seeking ISO certification.

Select a Credible Certification Body

The journey towards being ISO certified starts with identifying a qualified certification body to help you in the process. Since most of the ISO 9001 standards for mechanical engineering are based on a three-year cycle, most of the certification parties will expect the company to sign up a minimum three-year agreement to be considered. Some of the certification bodies will insist on visiting your company several times a year to assess the progress, but a single visit is usually enough to establish the milestones achieved towards the certification.

Develop a Management System

Developing a Management System is an essential part of achieving ISO certification standards. There is the Quality Management System for ISO 9001 standard and the Environmental Management System for the ISO 14001 standard. The core components of the quality management system include analysis and improvement, provision of resources, processes of management activities, and product realization. Once you’ve developed your management system, you’ll be required to fully implement the system, verify if it’s effective, and register it.

Stage 1 Audit

Once you have the quality management system in place, a thorough audit of company activities is what follows. An auditor evaluates your existing systems and provides a well-analysed report identifying suitable actions that need to be undertaken to meet the specific standard. Stage 1 audit is mainly used as a roadmap to the next phase of auditing, so there is no need to worry if you feel like the company is underprepared.

Stage 2 Audit

Stage 2 audit involves fixing all the problems that were identified in stage 1 audit. Once you’ve implemented in the recommendations put forward in the report of stage one audit, an auditor will come in again to complete stage two audit. The purpose of stage two audit is to determine the effectiveness and efficiency of your management system and to establish whether it meets all the requirement of the ISO 9001 standards that you want. If the system is good and it meets all the requirements, then the company will be recommended for ISO certification.

American Manufacturing

How do US Manufacturers Compare to Overseas Manufacturers?

Labor and production costs stop many American manufacturers from producing products for American consumption. Outsourcing component production or even whole products to overseas manufacturers has saved a lot of money for American manufacturers. But has it? A few strong points show that American Manufacturing compares better to overseas manufacturers.

The Problem

The original reason CNC manufacturing, for example, was outsourced overseas was that wages were lower. So many people needing jobs meant that if someone quit, there were twenty more who could fill the job. Since the foreign workers work for pennies per hour or per day, U.S. manufacturing more or less dried up.

For instance, let’s say mechanical engineering expert Joe Brown has designed a better home automation thermostat. Imagine a Singapore factory has been upgraded for CNC machining to produce the components of the thermostat. Since Singapore workers only make pennies per hour or per day, do they have the necessary incentive to ship quality merchandise?

What Was The Result?

American manufacturers have, for the most part, wanted to save money from the beginning. Over the years, however, some hard truths have come back to bite American manufacturers. A pennies wage isn’t the only criteria by which American manufacturing versus overseas manufacturing is judged.

What Are The Factors?

American schools are the best, bar none. This means that people all over the world trust graduates of mechanical engineering schools and U. S. manufacturing schools. Just ask anyone who uses Apple products, drives a Chevy and orders anything from Amazon on an American-made computer.

There are other factors highlighting the negatives of overseas manufacturing, such as:

-Shipping and handling charges have risen

-When ships remain in foreign ports, for reasons only the foreign country understands

-When merchandise sits at American Customs for weeks awaiting clearance

-It takes weeks and months for a ship to get from the foreign country to America. Meanwhile, the
manufacturer has no product to sell

-Smaller production runs are possible overseas, but shipping costs would be prohibitive

 

The Plus Side

Manufacturing in the USA has its advantages. The light has been shed on these advantages, giving American manufacturers the option of re-shoring or bringing manufacturing back home. Some of those advantages are:

-America jealously guards her intellectual rights. Manufacturers won’t worry about their designs being
stolen

-Safety standards, labor standards, and a healthy work environment ensure workers have incentive to
produce a quality

-A big rig transporting Mr. Brown’s product in days hands down beats a ship taking weeks or months to
arrive

-Manufacturing disasters like the one in Bangladesh many years ago don’t happen in America. American
manufacturers won’t have to explain to the buying public why its factory collapsed and killed thousands
of people

-American manufacturers have the flexibility to meet new production runs for increased sales

The Realization

One of those hard truths concerns having no inventory while product is in transport. The need for close proximity sourcing has become evident to American manufacturers. As a result, some companies are bringing manufacturing jobs home. While they’re on their way, the manufacturers are using nearby sources to keep product coming.

American manufacturing has come to the realization that in outsourcing to overseas manufacturers versus domestic manufacturing, there’s no place like home.

US Manufacturing

7 Reasons Why US Manufacturing is Important

Considering the current scolding regarding the importance of the US manufacturing industry, there have been critics who have tried to discredit the benefits associated with manufacturing in the current transformational age. However, their arguments are not right considering these seven benefits associated with US manufacturing.

Manufacturing enables Creation of Strong Middle-class Jobs.

Regardless of the claims from critics that manufacturing jobs are unpleasant, they, in fact, have not been to a modern machine shop as these offer a good work environment and a dependable source of income for many American families. Furthermore, most of them come with irresistible perks such as good health insurance, 401k plans and short term disability for its employees. Also, despite the fact that all jobs are good depending on personal preferences, some higher positions even pay up to $80,000-$100,000+ per year!

Manufacturing Creates Jobs

With a relatively high unemployment rate particularly among the youth, expansion of the US manufacturing industry has gone a long way in providing the much-needed jobs. Now, trade schools offer a 2-4 year education in Precision Machining. This is a good starting point if you are interested in manufacturing and machining. Unlike other positions that require high qualifications, entry level manufacturing jobs do not require such specialized skills and can absorb anyone willing to learn (although some schooling is a plus and will help the employee move up in the company). With schooling and on the job training, anyone with a passion in manufacturing can fit into the industry.

Manufacturing creates National Wealth

Buying and consuming imported goods will only make the country poorer since there will be no foreign income. However, by manufacturing products which can be sold locally and internationally, the nation’s economy becomes stronger since there will be foreign cash.

Factories/ Machine Shops are now Safer than before

The current American factories are very safe now and those interested in the industry should not be worried to work in this type of setting. Rarely are their incidences of safety breach or accidents with proper training and shop safety. Also, with the recent embracement of the worker safety policy countrywide, the possible safety incidences are continually being suppressed.

U.S. Industries are very clean

Compared to other countries where waste products are directed in rivers and other water bodies, American factories a very clean and are even getting cleaner. The waste produced in US manufacturing industries is treated and recycled to ensure that it does not harm the environment. As such, the world will be a healthier place if people bought more goods from the U.S. compared to other countries.

Workers with good jobs are healthy

Jobs in the US manufacturing industry are in most cases physically taxing. Whereas this may be seen as a negative, it is, in fact, good for the employee’s health as working in manufacturing also doubles up as exercise. Machinists are on their feet all day, constantly moving around. As a result, earning money and remaining healthy go hand in hand.

Manufacturing research leads to creative ideas

The US manufacturing industry contributes to approximately 75% of the private sector development and research. The mind-blowing innovations from the U.S. manufacturers keep the country competitive in the global platform hence making it an economic powerhouse.

In a nutshell, if taken alone, the manufacturing industry is the ninth largest economy in the world. As such, critics need to reevaluate their stand about the U.S. manufacturing industry.

manufacturing sector

Where is the highest concentration of manufacturing in the world?

Today, the highest concentration of manufacturing in the world is still in China. Having displaced the United States from the number one spot of world’s largest manufacturing nation back in 2010, China has continued to solidify its dominance as the world leader. As of 2013, according to data published by the United Nations, China accounted for 23.2% of the total world manufacturing sector while U.S. came in second with an 18.1% share. Japan, Germany and Korea rounded up the list of top 5 with 7.8%, 6.3% and 3.1% respectively.

China continues to be one of the most rapidly growing countries in the world. And when it comes to manufacturing, the country is definitely reigning as the supreme world supplier of electronics, automobile spare parts, commercial goods, steel products, communication equipment, and more. It currently has the largest concentration of manufacturing industries in the world, and according to statistics, 6 out of the major 10 export ports in the world are in China.

Here is a breakdown of China’s manufacturing empire, spread out in 5 major metroplexes;

1. Shanghai

Shanghai is not only one of the major financial, economic, trade, manufacturing and shipping cities in China, but also the world. It has rapidly been developing industries over the past 25+ years, which has massively attributed to its overall success. It is responsible for the manufacturing of automobiles, steel products, electronics, communication equipment and devices, petrochemicals and biomedicine.

Shanghai is also connected to the nearby cities of Ningbo and Hangzou by the Hangzou Bay Bridge and an overland high-speed rail. These two brother cities also indulge in heavy manufacturing of commercial and consumer goods daily.

2. Beijing

Beijing, the capital and most populous city in China after Shanghai, is another major hub for manufacturing companies in China. It is home to 52 of the Fortune 500 companies and its industrial sector is mainly dominated by heavy industries which contribute to over 80% of its gross industrial output.

The city’s manufacturing sector is mainly involved with electronics, pharmaceuticals, telecommunication equipment, chemicals, and food & beverages. It is also one of the leaders in information technology and bio-engineering.

3. Tianjin

A sister city to Beijing, Tianjin is another giant manufacturing sector on its own.  It is one of the 4 autonomous municipalities in China; the others being Shanghai, Beijing and Chongqing, that offer immense opportunities and resources to manufacturers hence attracting them here. It is a leader in the manufacture of mobile phones, automobiles, alternative energy products, and aerospace & aviation products.

4. Guangzhou

This another prominent city in China with thousands of factories spread out all over its manufacturing zones. The factories are so diverse in their production that you can get anything from toothpicks to automobile parts here. The city is also popular with traders of African descent, most of who came here in search of low-cost goods but ended up settling down and exporting these goods back home.

5. Shenzhen

Shenzhen is a world-renown electronics manufacturing city. It is the electronics manufacturing hub of China and the world at large. Home to over 12 million people, this city is just the perfect place for you to establish an electronics manufacturing business in China.

And there you have it, the country with the highest concentration of manufacturing in the world together with its major manufacturing metroplexes and their corresponding areas of specialization.