There are compelling reasons to focus on US manufacturing in the coming days.
Manufacturing in the US is on the rebound. It currently stands at $1.86 trillion, 11.9% of GDP (up from a low of 11.0% in 2009). Near-sourcing and a more favorable cost environment are helping to re-energize a vibrant segment of our economy. Selling into American manufacturing is a very worthwhile endeavor when you consider the potential of this marketplace.
US manufacturing, if treated as a stand-alone economy, would be the 10th largest nation in the world. That makes US manufacturing larger than the GDP of both India and Canada and only slightly smaller than the GDP of Russia and Italy.
I would be remiss if we did not note that China’s manufacturing base is larger than that of the US. Manufacturing in China is estimated at $2.522 trillion (30.57% of an $8.250 trillion economy).
There is a lot of selling potential into the Chinese manufacturing economy as well, but the costs of reaching that market, as well as the IP risks, make a compelling argument for a strong US focus.