alt Hacker News> Unfortunately, the manufacturing environment has changed dramatically. The effects of COVID, increasing manufacturing and operating costs, and significant changes in consumer purchasing habits have made it increasingly difficult for a small American manufacturer such as Sherline to maintain the workforce and production levels necessary to remain competitive.
Can’t help but wonder if “operating costs” include tariffs and other policy decisions by the current administration that have driven up costs for everyone.
Speaking from my personal observations...
It is not just tariffs. The cost of living in the US, especially housing, has approximately doubled in my area since 2019. There is a massive overinvestment in real estate. When housing costs go up it forces companies to pay their employees more to adjust which then drives up the COGS. This becomes a feedback loop because the real estate investors see the prices go up and say "well we have to raise rents because COGS are going up."
Competing with any offshore becomes impossible (especially when compared to countries which subsidize their production). Companies close instead of attempting to compete. Why would you when simply investing in real estate, crypto or AI would net more money? The parts needed to produce in the US are typically not made in the US.
Tariffs hurt...a lot...the companies I work with directly (including mine) have been struggling with them for a decade now. But it is a lot more than that...there is a general lack of interest in making things that are real. Plus, the cost if you attempt to do so puts you in a position where you cannot be competitive.