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Third, automation and other technologies are almost at the point where the U.S. can produce the same quantity of product with half of the employees that would be needed in a similar factory in China. And advancements are accelerating. With progress in data analytics, low cost cloud computing and AI, the American factory is evolving into a new age. Classroom discussion questions: 1. Chapter 1 in your Heizer/Render/Munson OM text describes 3 productivity variables. How does each apply in this article? 2. What other current problems have encouraged the localization of supply chains? OM in the News: Made in America-Again DECEMBER 18, 2020 by Barry Render tags: localized supply chains, reshoring, U.S. manufacturing Looking to 2021 and beyond, there is more reason for hope in U.S. manufacturing than at any time since the 1990s, reports The Wall Street Journal (Dec 17, 2020). Three major themes are gaining traction that will carry manufacturing to new prosperity: a quick recovery from the recession; localization of supply chains (onshoring); and technological advancements that level the playing field between the U.S. and low-cost countries. U.S. manufacturing lost its lead some time ago. Lack of sustained investment, noncompetitive labor rates and degrading infrastructure opened the door for low-cost countries, notably China, to take the lead as manufacturers shifted production overseas. The end result was an industrial sector that leaked jobs and fell behind in technology. So why a turnaround? First, the industry is poised to emerge from the Covid-19 recession much more quickly and robustly than it usually does from downturns. Data are overwhelmingly supportive of an industrial economy on the mend. With low interest rates and rising order books, manufacturers are boosting investments in both factories and new products. Second, pre-pandemic, there was already a N95 face masks being made at a GM plant in Mich. rising concern around supply-chain risks. The auto maker started processing face masks in Companies that a decade ago felt comfortable response to the pandemic. as suppliers consolidated and centralized, often solely in China-began to lose faith in globalization and made plans to onshore. Firms began to see that shipping intermediary products halfway around the world and often back again was no longer productive. These concerns were elevated to near panic as supply chains shut down in the early days of Covid. High-profile shortages, such as the lack of PPE, served as a broader wake-up call for the localization of supply-chains.