What factors allow manufacturing to succeed in a developed country?
A massive simplification would to look at developed (high wage) countries as experiencing two forces.

There is the offshoring pathway. Low skill manufacturing can be offshored to lower waged countries. Output in the home country decreases.

Then there is the technological pathway. Automation and innovations can work to take the bottom out of employment, saving on wage costs. Manufacturing will become increasingly dependent on a more skilled employee. Output in the home country increases.

The expected trend is one away from the low skill manufacturing (think clothing) towards more complex, bespoke products (think 3D printed prosthetics).

The overall environment is notably more complicated with government subsidies, global supply chains and trade deals among others things all being important.

Deloitte Access Economics have released a manufacturing competitiveness report which covers elements of this.