American manufacturing is experiencing a rebirth. As costs rise overseas, companies nationwide are recognizing the opportunity to tap local talent and create jobs that boost the economy. Despite this shift, global demographic trends reinforce the importance of keeping a long-term international focus. Whether it’s sourcing raw materials or reaching consumers in emerging markets, BofAML can help connect you to opportunities worldwide.
MANUFACTURING’S FUTURE WORKFORCE
Manufacturers are modernizing their strategy to address challenges faced by many companies looking for skilled talent in today’s workforce. There are a combination of factors at play, including the need for newer skills created by the digitized manufacturing landscape as well as the shift from a baby boomer economy to younger generations.
More companies are discovering the hidden costs of outsourcing. Rising wages, slower productivity growth, and weaker intellectual-property protection are prompting many firms to begin “re-shoring” jobs to the U.S. As this trend accelerates, CFO challenges will shift to retaining talent and optimizing working capital.
A TIGHTER SUPPLY CHAIN
New transportation technology and infrastructure investments make it faster and easier for U.S. companies to get raw materials and ship finished goods, domestically and globally. The rise of “smart” cities—with delivery drones and driverless cars—and the recent Panama Canal expansion can speed connections with suppliers and customers.
HOW WE CAN HELP
For manufacturers, streamlining payments and receipts can boost profits while reducing risk. Shifting low-value, high-volume payments to a card program can increase efficiency and earn rebates. And requiring a letter of credit (LC) with overseas customers protects against non-payment and can help you get paid faster while extending payment terms.