Make Industry’s shift post-2008 Financial Crisis
Post-2008 financial crisis, the make/manufacturing industry shifted to freelance engineers and platforms for product development, as seen in MBO Partners and Industry Today data
The 2008 financial crisis had a significant impact on the manufacturing industry, which saw a decline in production and employment rates. However, the industry has since rebounded, and the use of freelance engineers and platforms for product development has become more prevalent. This essay will examine the impact of the 2008 crisis on the manufacturing industry and how the industry has adapted to overcome challenges.
According to MBO Partners, the number of independent workers in the United States has grown by 7.9% since 2016, and by 2.2 million since 2011. This increase in the number of independent workers has been particularly prevalent in the manufacturing industry, where companies are increasingly turning to freelance engineers to meet their product development needs. In fact, a study by Industry Today found that 85% of manufacturing executives said they have used independent contractors for engineering services in the past year.
One of the main reasons for this shift towards freelance engineers is the cost savings that come with not having to hire a full-time employee. According to a report by McKinsey, using freelance engineers can result in cost savings of up to 20–30% compared to hiring a full-time employee. This cost savings is particularly important for smaller manufacturing companies that may not have the resources to hire a full-time team of engineers. Freelance engineers also offer a flexible, scalable workforce that can be hired on a project-by-project basis, allowing companies to adapt to changing market conditions.
Another factor driving the use of freelance engineers is the increasing complexity of products and the need for specialized expertise. With the rise of new technologies and manufacturing techniques, it is becoming increasingly difficult for companies to find full-time employees with the necessary skills and experience. By using freelance engineers, companies can tap into a global talent pool and access expertise that may not be available locally.
Platforms like Tasker have also played a significant role in the growth of the freelance engineering market. These platforms provide a marketplace for companies to connect with freelance engineers from all over the world, offering a range of services from 3D modeling to design engineering. According to a report by McKinsey, the freelance engineering market is expected to grow at a rate of 30% per year over the next decade, reaching a value of $100 billion by 2028.
In conclusion, the 2008 financial crisis had a significant impact on the manufacturing industry, but the industry has since rebounded and adapted to the new economic environment. The use of freelance engineers and platforms for product development has become more prevalent, offering cost savings, specialized expertise, and a flexible workforce. As the manufacturing industry continues to evolve, it is likely that the use of freelance engineers will continue to grow, driving innovation and competitiveness in the sector.
Sources:
MBO Partners. (2020). Independent Workforce Report. https://www.mbopartners.com/uploads/files/state-of-independence-reports/2020-state-of-independence-report-final.pdf
Industry Today. (2019). The Future of Work in Manufacturing. https://www.industrytoday.com/the-future-of-work-in-manufacturing/
McKinsey. (2016). Independent work: Choice, necessity, and the gig economy. https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Employment%20and%20Growth/Independent%20work%20Choice%20necessity%20and%20the%20gig%20economy/Independent-Work-Choice-necessity-and-the-gig-economy.ashx
McKinsey. (2018). Freelance economy: Opportunities in manufacturing. https://www.mckinsey.com/business-functions/operations/our-insights/freelance-economy-opportunities-in-manufacturing
