The U.S. Economy improved by 2.7 percent over the past quarter based on the current Commerce Department’s report. So where is the economy recovering? Interestingly enough, it is among the manufacturing sector.
Among all economic sectors, manufacturing has the highest job creation multiplier – that means for every job created in this sector, 1.9 additional jobs are created/supported by this new job. That’s significantly better than retail.
The local economy is seeing this benefit as companies such as PACCAR, Boeing and 5,000 other manufacturing companies in Washington state ramp up their hiring.
The success of the manufacturing sector is largely a function of three major variables. First, the products produced have useful life expectancy and require replacement.
Second, research and development conducted by the manufacturing industry drives purchaser demand and contributes to the competitive enhancements for the manufacturing sector. As an example, we look toward Microsoft’s new on-board auto and truck technologies – a development that really contributes to the coolness factor of the auto manufacturing arena.
Finally, and probably the most important, is the availability of a skilled labor force to help develop the manufacturing processes toward a sustainable future.
The manufacturing company today is very different than in the past. In fact, a better descriptive term would be “advanced” manufacturing.
An example of this on the Eastside is Pathway Technology which manufactures products that remove blockages in patients’ arteries. The manufacturing is done in a clean room similar to a large medical hospital surgical center with many of the manufacturing tasks requiring microscopes. These are well-paid and very sustainable jobs. Most important, these jobs are meaningful and the employees know at the end of each day that the product they produced will save and improve patients’ lives.
The work environment in advanced manufacturing needs to be understood as clean, safe, interesting, rewarding, and well compensated along with comparative benefits to other industry sectors. These new manufacturing technician careers are promising, rewarding, and a much needed component of national and local economic recovery.
Jim Hebert is the president and founder of Hebert Research, Inc., an international real estate, land use, and statistical research firm in Bellevue.