Page 52 - FDI Alliance International Magazine Summer 2020 Digital Interactive Issue

THE RISE OF THE AMERICAN

MITTELSTAND

To say that COVID-19 is going to change the of our essential commodities and vital health the equipment he purchased will enable him
landscape of investment promotion as we know it, related products. The current mindset in the U.S. to make modifications and expand his product
would be an understatement. For the next 5 years, we is to take a step back, with a slight retreat from lines.
are going to see shifts in the corporate investment globalization.
patterns we have become accustomed to. Stories like this have emerged over the past six
The American entrepreneur is seeing opportunities months, with companies adapting to overcome
The pandemic is going to change the face of the to fill gaps in supply chains, they are seeing new supply chain delays, sourcing domestically in the
American company. From my vantage point, I industries take off, spurred on by an energy U.S. and ushering in a new mood of self-reliance.
see a rise in American Middle Market companies that has been created by the emergence of a As it is said, “necessity is the mother of invention”.
and shift away from globalization. I see a new pandemic economy and a newly minted “go it The pandemic has created an energy, especially
day for small to medium sized businesses and a alone” mindset. prevalent in the manufacturing sector.
resurgence of ‘Made in America’.
I spoke to one small manufacturer with 150 Amplifying this sentiment is the ongoing U.S.-
Change is in the air and the big question is, employees who told me that his supply chain China trade war and a belief that foreign
what does this change look like? I see a change was impacted by the virus, so he decided countries are trying to influence the upcoming
taking place in the fabric of America’s companies to purchase two capital intensive pieces of U.S. election. Trade disputes, distrust of foreign
and American commerce. machinery to produce the parts he needed. As influences and product shortages faced during
he said, “Money is cheap, and I didn’t want the height of the pandemic, have contributed
The term “American Dream” was coined as the to have to rely on procuring parts and losing to an urge to source domestically and reshore
promise of success and prosperity. This dream control of my production line.” He added that critical U.S. supply chains.
of success is rooted in our culture, our ideals,
and our pursuits. COVID-19 upended a lot of
dreams, but it also reignited a spark and has
reinvigorated something that was already there,
the American entrepreneurial spirt. My view is
that for many, the pandemic has rekindled the
American entrepreneurial drive, especially in the
Middle Market.

I predict an uptick in manufacturing and technology,
an uptick in goods and products, and an uptick
in industry. I see a trend emerging, a marked
increase in the number of U.S. SMEs in heavy
industry and manufacturing, along with an
increase in “Made In America” products.
The global pause gave us time to evaluate
and plan, taking in information about offshore
supply disruptions and loss of control of some

52. FDI ALLIANCE INTERNATIONAL