May 16, 2024
Since 2008, the number of metalworking shops has dropped from 21,000 to 17,000, a 16% decrease. Some may view these figures as a sign of contraction in the industry, but I see it differently. We are not shrinking; we are transforming.
There is a wave of growth on the horizon, creating massive potential for newcomers in manufacturing. There is a critical need for entrepreneurs in our industry – those who are ready to innovate and drive our sector forward.
Here are a few reasons why:
10,000 baby boomers retire every single day, a trend that significantly affects the manufacturing landscape. Many shop owners from this generation are reaching a point where retirement is not just a future dream, but an imminent reality.
Unfortunately, a considerable number of these owners do not have a succession plan, which means that a significant number of manufacturing businesses face closure not due to a lack of profit but because there’s no one prepared to take over. This is a pivotal moment for aspiring business owners to step in and where the spark of entrepreneurship can light the way.
It’s not just about keeping shops open; it’s about bringing new ideas to the table, embracing new technologies, and finding smarter ways to work. That’s how we keep the industry not just alive, but thriving in a global economy.
Our industry continues to be a cornerstone of the economy. Manufacturing and construction-related activities make up nearly 15% of America’s GDP—that’s a sizable chunk of the economy we’re talking about. As we observe a promising trend in infrastructure growth and the reshoring of manufacturing operations, the potential for new business and entrepreneurial ventures is expanding exponentially.
Embracing Infrastructure Expansion
Recent federal commitments to enhance and expand U.S. infrastructure signal a boom for the manufacturing industry. Projects aimed at rebuilding roads, bridges, dams, and public transport systems directly boost demand for structural steel, manufactured goods, and machinery.
Capitalizing on Reshoring Efforts
The trend towards reshoring manufacturing operations to the United States is driven by the need for greater supply chain control and a shift towards more sustainable and responsible manufacturing practices. These developments indicate not just stability, but a vibrant arena for growth.
In a market so substantial, the opportunities for business creation are plentiful. Entrepreneurs have a chance to carve out their own niche in a sector that’s foundational to the country’s infrastructure and integral to its economic vitality.
Economic Impact of Aerospace Needs
There may be fewer shops out there, but that doesn’t mean there are fewer opportunities. Take Boeing and Airbus for example – they are gearing up to build 42,000 jetliners over the next 20 years. That’s a lot of planes, requiring a mind-boggling 100 billion parts. When you translate that into jobs, economic growth, and the sheer scale of production, it’s clear we’re looking at an immense opportunity—an opportunity that’s ripe for a fresh generation of entrepreneurs to step up and make their mark.
Clearly, we need more entrepreneurs in this industry. And we, as a business community, have the chance to welcome a new generation of thinkers, makers, and leaders. But, how do we do that? How do we ensure that the next generation is ready to take the helm of these crucial businesses?
This is a question on my mind for several years now. Our leadership team (with Adam Schmitt at the helm), and I are ready to answer these questions and provide the support needed within our industry to make it happen.
We need to make these industry opportunities more widely known. The narrative that the manufacturing industry lacks innovation or growth potential is outdated and inaccurate. The reality is that our industry is ripe for innovation, and it’s a thrilling space for those with entrepreneurial spirit. We need to communicate that more effectively.
And importantly, we need to offer support––both for the next generation as well as supporting the current generation in transitioning their business. At ProFab Alliance, we’ve literally built the playbook on this. Helping business owners to create systems that make their business sellable and valuable. In addition to our consulting services, we offer franchising opportunities under our legacy business, Nix Industrial. We offer a unique proposition: entrepreneurs can be in business for themselves, not by themselves.
Whether you are looking to buy, sell, or enhance a manufacturing business, at ProFab Alliance, we offer tailored support:
Visit us at profaballiance.com to learn more about how we can help you achieve your entrepreneurial ambitions. Together, we can drive the future of manufacturing, creating value not just for our businesses but for our communities and the country.
The drive to help others in our industry fueled our Nix Companies leadership to create a brand new business, ProFab Alliance – the Nation’s only Consulting, Franchising and Community for metal fabricators and machine shops. To learn more about our shared services and resources, including our HR playbook and templates, visit profaballiance.com.