Feasible Manufacturing in Small Towns of the USA: A Feasibility Study
When considering manufacturing in small towns in the USA, the question arises: what kind of industries can thrive and ensure the prosperity of these communities? While the answer is not straightforward, exploring the current landscape and potential solutions can provide valuable insights.
The Challenges of Modern Manufacturing
Modern manufacturing, especially in the USA, often requires significant scale. This trend, exemplified by cities like Elkhart, Indiana, which is known as the RV capital of the world, demonstrates the industry's move toward consolidation. With an increasing number of industries clustering in smaller spaces, it becomes unrealistic to expect that every small town in the USA can sustainably host manufacturing facilities.
The massive shortage of qualified workers in the USA further complicates the situation. Relying solely on immigrant talent to fill high-paying jobs is unsustainable in the long term. Instead, fostering a more educated population could be a better strategy. In Japan, for instance, the aging population has led to a rapid shift towards automation, reducing dependence on immigration to fill positions.
Case Studies: Small Town Manufacturers Thriving
Despite these challenges, there are indeed examples of manufacturing success in small towns. A nearby town called Bruce Rock, with a population of 700, has an engineering firm that produces truck bodies and trailers. Similarly, Cunderdin, with a population of 1450, has a steel fabrication business that makes shopping trolleys, shelving, and pallet racks. In Beverley, with a population of 1700, a leading crop spray manufacturer called Beverley Hydraboom operates, producing the largest hydraulically operated boom sprays.
These industries, while operating in remote locations, face several challenges such as distance to supplies and markets. The recent closure of the rail system and the shift to truck transportation have further hindered their operations. However, these communities also benefit from cheap land, affordable utilities, proximity to major roads, and regional business support programs.
Opportunities for Small-Town Manufacturing
The key to success in these small-town manufacturing ventures lies in adapting to the local conditions and leveraging the available resources. Many of the sales and support are conducted online, taking advantage of good broadband internet access. This digital shift can greatly reduce the need for physical infrastructure and traditional market penetration, making small-town manufacturing more feasible.
Government support plays a crucial role. By providing similar levels of support to industries in small towns as they do to mining and fossil fuel sectors, the government can foster a more balanced and sustainable economic environment.
Moreover, the focus should be on industries that can utilise the local workforce efficiently and are equipped to handle the digital millennials and Gen X workers. This could include specialized manufacturing, customized solutions, and small-scale production tailored to local needs. The key is to find the right balance between scale and local adaptability.
Conclusion
The feasibility of manufacturing in small towns of the USA is not as dire as one might think. By embracing automation, leveraging digital tools, and focusing on niche markets, small-town manufacturers can thrive. It requires a collaborative effort between local communities, businesses, and the government to ensure that small-town America can prosper and rebound.