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As markets and industries continue to globalize, it becomes increasingly difficult to ensure adequate domestic manufacturing capacity in the United States. As Shih's article illuminates,

As markets and industries continue to globalize, it becomes increasingly difficult to ensure adequate domestic manufacturing capacity in the United States. As Shih's article illuminates, this issue was especially prominent during the COVID-19 pandemic, in which the US was pushed to fulfill manufacturing requirements on urgently needed products. The dependency on imports made this task difficult and resulted in cries from both the public and politicians to bring manufacturing practices home (Shih, 2020). However, these calls are greatly challenged by the realities of global supply chain and operational management. One such hurdle is the labor shortage the US currently faces and its effects on domestic manufacturing capacity (Gow, 2022).

One of the main considerations around this topic is a decrease in willingness to work in manufacturing jobs specifically. While there are significant calls for the "re-industrialization" of the United States, few people want or have the skill to work in industrial jobs (Gang, 2021). Even if all skilled employees in the US were employed, it is estimated there would still be a large gap in manufacturing sectors, with 35% more unfilled job openings than workers capable of filling them. This is only aimed to worsen, with predictions showing a shortage of more than 200 million American manufacturing workers by 2030. Financially, that equates to an opportunity cost of $1 trillion dollars each year (Gow, 2022). I personally work for a metal manufacturer and see our HR team struggle with retention and hiring regularly. We have to fight to keep people, especially with jobs at places like Amazon popping up around the country. These larger corporations can often afford to pay more and provide more benefits than medium-sized manufacturing companies like us.

Of course, challenges also arise from the high cost of labor in the US when compared to manufacturing overseas. As Shih described in his article, the pressure to enhance productivity and cut costs leads to a greater inclination for managers to utilize geographic locations which will ultimately help to lower production costs (Shih, 2020). Questions about the trade-offs between "cheap" labor and higher shipping or transportation costs are consistently asked by executives when strategizing supply chain directives. Many people now advocate for a level of dual sourcing, pulling individuals both locally and internationally. While this does not grant American self-sufficiency, it does bring us closer to manufacturing independence than complete offshoring and mitigates our issues with employee shortages (Boute & Van Mieghem, 2017). Others argue for further integration of robotic automation and AI to help fill these gaps. Doing so would not only bring manufacturing back to the States, but also revolutionize operational and supply chain management (Gow, 2022).

While personnel issues are not the only challenges in bringing manufacturing back to the US, they hold an important place in the conversation. Even so, it is also worthwhile to question whether it is realistic or wise to move towards domestic manufacturing. While brittle in times of crisis, globalized supply chains also provide greater tools for specialization, scaling, and lean production. When handled with Shih's proposed strategies presented at the conclusion of his article, benefits may outweigh the challenges of continued utilization of the international supply chain system.

Question: After reading the opinion above, what is your response? What may be some risks or drawbacks? Please be detailed in your opinion.

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