Insourcing Manufacturing Offers Entrepreneurs More Options
February 26, 2013Insourcing is currently a hot topic and receiving a great deal of press in mainstream media newspapers, magazines, and websites.
Last week, in the State of the Union address, President Obama talked about bringing jobs back to the U.S., and emphasized that one of the nation’s first priorities is the retention and creation of manufacturing jobs.
“Our first priority is making America a magnet for new jobs and manufacturing. After shedding jobs for more than 10 years, our manufacturers have added about 500,000 jobs over the past three. Caterpillar is bringing jobs back from Japan. Ford is bringing jobs back from Mexico. And this year, Apple will start making Macs in America again.”
For those in the manufacturing industry, and interested entrepreneurs this is good news and a validation of the growing trend toward bringing jobs back home.
U.S. small business-owners should make the most of the recent boost to insourcing by exploring how it can benefit their company’s bottom-line.
Four factors for consideration:
- The federal government is working to meet the goal of 23% of federal dollars going to small business, including small manufacturers.
- New tools have been developed that provide low-cost, short-term financing to help small contractors get working capital needed to create jobs.
- The Small Business Investment Company program (SBIC) has money set aside for small business expansion. More SBIC dollars went to manufacturing than any other sector in 2011.
- Tax credits and incentives, which are often overlooked, are available to U.S. manufacturers.
For more on tax incentives, see Federal Tax Benefits for Manufacturing: Current Law, Legislative Proposals for specifics.
There is a wealth of valuable information on additional benefits for small businesses and start-ups on the Small Business Administration (SBA) website.
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