The article details the numerous obstacles hindering small businesses from manufacturing in the US. High costs, sourcing difficulties, labor shortages, and regulatory hurdles are key issues.
Establishing a US-based manufacturing facility involves substantial financial investment, potentially exceeding millions of dollars for equipment, molds, and sterilization departments. The global nature of supply chains, with various production steps distributed across countries based on comparative advantages, presents further complications. Even obtaining essential automated machinery might require sourcing from China, creating further dependencies.
The article points to the expertise and experience China holds in certain sectors, particularly in specialized materials like EVA rubber. This deep-seated knowledge, developed over decades, makes it challenging for US-based businesses to compete effectively. Attracting skilled workers, even from countries like China, is hampered by US immigration policies.
The fluctuating US-China trade relations, with constantly changing tariff policies, cause uncertainty and disruption for small businesses. This uncertainty leads businesses to delay orders, contemplate closures, and even preemptively lay off staff.
The economic impact of these difficulties is highlighted. Companies face a difficult choice between maintaining customer prices or employee compensation, with both potentially hurting the economy.