Is the growth in U.S. manufacturing a product of deindustrialization? A recent op-ed article for The Hill Newspaper took a look at the role the federal government has played in various countries in either supporting or debilitating research and development in manufacturing.
Why Invest in Manufacturing?
A few of the nations the article points out are Germany and South Korea, which invest roughly 9 times more in R&D for manufacturing-related technologies than the U.S. Meanwhile, Japan is another country that allocates a significant amount of government funding for the same purposes.
As a result, these nations have demonstrated strong returns on investment in the way of a manufacturing trade surplus. The article asserted there is current legislation proposed under the Revitalize American Manufacturing Innovation bill that will potentially strengthen facilities throughout the U.S. aiming to develop new, effective technologies to be used in producing and developing goods. These locations are at the heart of an initiative to regain ground in manufacturing.
The Cost of Government Noncompliance
At the same time, government regulations provide good reasons for many businesses to invest in automated data collection technology so they are better able to adapt.
For instance, a recent RFgen white paper, "8 Signs You Need an Automated Data Collection Solution," clearly explained several repercussions of government regulations in manufacturing circumstances. Citing research conducted by Foley & Lardner, the white paper indicated businesses earning less than $1 billion in revenue annually encountered higher compliance costs after the Sarbanes-Oxley Act of 2002 was enacted.
Some businesses were able to solve this problem by activating and enabling previously unused features in their ERP software that resulted in a single fee but ensured the organizations would maintain compliance with the SOX Act for foreseeable future. Because RFgen automated data collection solutions sync with the software logic that governs most ERP software, there aren't any additional steps that manufacturers must take to ensure the processes are aligned with government regulations.
When companies don't adhere to legislation, they face serious setbacks in terms of penalties handed down by enforcement agencies. These can include fines, criminal convictions and other judicial action. Meanwhile, companies can lose face in the public eye and see reduced revenue streams as a result.
The government inevitably plays a role in manufacturing. On one hand, there are measures proposed to support R&D for greater innovation. On the other, compliance legislation aims to achieve an industry standard. Automated data collection software supports both objectives.