3 Ways Small Manufacturing Businesses are Fueling Job Growth

Over the years, America and other developed countries have consistently lost manufacturing jobs to the developing countries. One segment of businesses which are consistently thwarted in this trend is the small businesses. When you look at the manufacturing jobs in Minneapolis today, you would realize that most of the new jobs are generated by the smaller businesses.

We would today share with you 3 different reasons why the small manufacturing businesses are still able to generate jobs.

  1. Smaller scale:

In order to outsource the jobs, most of the companies have to invest heavily in the developing countries. Even when they contact the outsourcing contractors, most of the contractors are just interested in million dollar contracts. On the other hand, smaller businesses are not able to provide them with these million-dollar contracts. Owing to their smaller scale, the small businesses have no other option but to generate local jobs. This is one of the main reasons why small businesses are still able to generate such jobs.


  1. Niche play:

Many of the smaller businesses operate in niche markets. The margins in niche markets are good enough. Moreover, if they were to look for outsourcing in niche markets, specialized skills would be required. These specialized skills are not present in the employees of the developing countries. This is another reason why the smaller businesses are sticking to the developed countries.

Moreover, in the niche markets, innovation is needed in order to serve the needs of the customer. When it comes to manufacturing innovation, the developed countries are far better as compared to the developing countries. Moreover, the innovative talent which can be tapped in developed countries is also much greater as compared to the developing countries. If the companies were to educate the employees in the developing countries, the cost of educating the employees and bringing them to fore with the kind of skills needed would offset the cost advantage of innovation.


  1. Tax breaks:

The government is also initiating various tax incentives for the smaller businesses. With the help of these tax incentives, the smaller businesses are not only able to retain the jobs but also compete with the larger ones. Thus, they are able to offset the extra cost of hiring locally. The government is taking more and more initiatives in order to provide incentives to the smaller companies so that job creation can be driven up significantly.

In many of the cases, the small businesses are local. Thus, it does not make any sense for them to outsource jobs to developing countries as the employees would not be able to fulfill the demands of their customers.

Thus, when you’re looking for manufacturing jobs in Minneapolis, you would realize that most of them are created by the smaller businesses. These days, you just need to search on the Internet for manufacturing jobs in Minneapolis and you would be able to find plenty of such vacancies by smaller businesses. The main reasons for this include the 3 factors which we have discussed above. With the increasing support from the government and authorities in the developing countries, the pace of manufacturing job creation in Minneapolis is slated to increase further.

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