Changing Demand: A Glimpse at a U.S. Manufacturing Revival

Two years ago, the U.S. manufacturing industry was deflating like a balloon. Losing momentum with every new advancement in global supply chains and technology. COVID has been a dark cloud for economies, but it has brought a bit of life back to the U.S. manufacturing industry. As we look at global supply chain breakdowns, we are seeing a glimpse of what a resurgence could look like in the U.S. as we move away from being import reliant for supplies and finished goods.

Import Cost Inflation Creates Opportunity

Since mid to late-2020 the cost of importing from historically reliable markets like Asia has drastically increased and forced many to reevaluate their supply chains. Businesses that turned inwards to the U.S. for raw materials and finished goods were faced with the realization that the market is small and often specialized, resulting in higher than ideal costs as well.

Why is it that sourcing products from within the bounds of the U.S. (which requires shorter transportation, fewer taxes and tariffs, etc) is not more cost effective? Simply put, demand for U.S. manufacturing has been low since the 70s, and incredibly powerful logistics networks that exist globally have not been perfected domestically. Thus, it is not necessarily a lower cost option for companies, not yet anyway.

Early Data Shows Indicators of a Healthier U.S. Manufacturing Industry

We are, however, beginning to see a shift as businesses tired of the long lead times prioritize incorporating U.S. manufacturing and suppliers. Since early 2021, we have seen numbers that are healthy in regards to factory growth and signs of companies re-strategizing their dependency on imports. 

Factories Are Ramping Activity

In May of 2021, the Institute for Supply Chain Management’s index of national factory activity increased to 61.2 from 60.7 in the previous month. Nearing the end of 2021, November’s report presented a reading of 61.1 which indicated an 18 month expansion in the economy.

Reinvestment in the U.S. by Major Corporations

Companies like General Motors, Toyota, and Samsung announced plans for manufacturing investments nearing a combined $22.3B in spend. Aside from creating jobs, these plans would rely on domestic shipping and transportation to be profitable investments.

For manufacturers of raw materials and finished goods (like Western Steel & Wire), this is a real opportunity to help revive businesses coming out of economic hardships. By bringing conversation to North American logistics, the importance of domestic sourcing, and putting priority on our own distribution networks, our manufacturing industry can hope to see a true revival of U.S. manufacturing.

If you’re looking for a reliable, U.S. based provider Western Steel & Wire can help you with all your medical, construction, and agricultural wire needs.  We welcome the opportunity to earn your trust and deliver the best possible service to you. Email us at

Leave a Reply