New trend of manufacturing in US favors fewer employees

Global Business

The face of the manufacturing sector in the United States is changing. First it was moved overseas, then it automated and now there’s a boom in firms with very few employees.

In many cases those companies become incorporated and only have one employee, the owner.

CGTN’s Karina Huber reports.

Leeann Rybakov went to culinary school, but instead of working in a restaurant she opted to start her own business. One day a week, she goes to a commercial kitchen to prepare snacks made of buckwheat.

With $5,000 she started “BuckWHAT,” which now sells to Whole Foods and other U.S. food stores. She’s in charge of the entire process.

And it’s not just food makers. According to the Commerce Department, in 2014 there were more than 350,000 U.S. manufacturing firms in all kinds of industries owned and operated by just one person. That’s an increase of 17 percent since 2004. Over the same time period, manufacturing companies with numerous employees fell 12 percent.

Experts say the change is, in part, due to technology.

Leeann says she’s thought about hiring someone, but is hesitant. She’s worried about finding someone she can trust. It can also be costly and tedious. For Leeann and other business owners it can seem like too much of a hassle.

Besides, running their own business is often a source of pride even when things get tough.


Al Angrisani discusses new trends of U.S. manufacturing

For more on the changing face of U.S. manufacturing CGTN’s Susan Roberts spoke to Al Angrisani, former Assistant U.S. Secretary of Labor.