Small manufacturers matter in a big way
In a BusinessWeek op-ed, Harold Sirkin says that smaller U.S. manufacturers matter a lot. In fact, thousands of products made in America—from automobiles to amplifiers—are made by small manufacturers. Sirkin says that these companies are "indispensable to our economy."
Why are small manufacturing shops so important?
Sirkin explains that many of these smaller companies are critical to the success of larger firms because they supply parts and components across a wide range of industries:
Some 250,000 manufacturers in the U.S. have fewer than 500 employees. Studies show these smaller businesses produce more innovations per employee than large manufacturers. And truth be told, it is generally from these small companies that the jobs of the future will spring.
Smaller manufacturers are also leading the “reshoring” wave, so it's crucial to give them a helping hand, when needed. Sirkin says that small and medium-size manufacturers often have "great difficulty obtaining the financing and venture capital they need to 'restructure, grow, and scale up,' while their access to bond markets is constrained by 'high borrowing and transaction costs.'"
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