According to recent reports, the U.S. Department of Commerce (DOC) says that the future of American manufacturing lies in the hands of small businesses. The department’s recently released Supply Chain Innovation: Strengthening American’s Small Manufacturers report identifies potential barriers and solutions for manufacturing growth both in the U.S. and abroad. The report indicates that small businesses could offer more innovative solutions for manufacturing growth. DOC officials are calling for improved collaboration between the government and larger corporations to help aid small businesses in the pursuit of new innovation.
Accounting for nearly half of all American manufacturers, small firms play an increasingly important role in U.S. manufacturing industry. Data indicates that the U.S. has added 877,000 jobs since February 2010, many of which have been created by new small and medium sized operations. However, the industry wide employment growth continues to struggle. Federal data indicates that from 1960 to 2000 Americans held between 15 to 17 million jobs in manufacturing, but in 2000 and 2001 workers lost roughly one-third of those jobs, and the industry has been s low to recover ever since.
According to the DOC’s assessment, small firms face barriers to innovation with lack of access to adequate funding and little ability to test their research and product development. As such, small firms are reportedly 60 percent less productive than their larger peers. However, these small firms often yield the most significant breakthroughs in technological and product development. The report acknowledges that small firms more often develop cutting edge processes for advanced materials like carbon fiber and lightweight metals, new sensors and digital controls.
The report asserts that the government can play a bigger role in improving supply chain efficiencies by building more networks nationwide. Their primary goal is to help improve access to resources needed for innovation and discussion about common problems and opportunities. The DOC proposed funding such projects with a mixture of government and private sector funds.
Manufacturers play a significant role in local, state and federal economic success. As such, it is vital that Orlando manufacturers take the proper precautions when it comes to protecting their physical and intellectual property, employees and other assets. At Newman Crane, we specialize in helping Orlando manufacturers large and small find the Florida business insurance solutions they need. To learn how our Orlando Insurance Agency can help your operation, contact us today (407) 859-3691.