Our contributions to this year's ACG Manufacturing conference included the publication of this white paper as part of a stimulating and insightful panel discussion on Market Trends in Financing Manufacturing Growth. A brief abstract is below; to read the entire white paper, please click here.
Looking back at U.S. history, we are now witnessing the transformation of the industrial sector. This fourth and current industrial revolution is centered on digital connectivity, internet of industrial things, artificial intelligence and smart machines. We could be in a “perfect storm” of industrial innovation and increasing manufacturing activity in the United States. All of the potential changes on the horizon could be a growth catalyst for U.S. manufacturing and support the continued improvement in U.S. employment. Current manufacturing trends and the smart factory are calling for more expensive capital equipment. Employees with experience and required skills will demand higher wages and creating apprentice and training programs for future generations will be key to the maintaining the proper balance of investment in new equipment and the supply of labor. The Fed is signaling more strongly than before that they will continue to raise interest rates due to economic strengthening and real inflation in the economy. Higher interest rates float all interest and return boats whereby making investments in capital equipment may make more sense to business managers. This confluence of technology, pro-business fiscal policy and favorable economic conditions should spur U.S. business investment in manufacturing.