America needs jobs to bring us legitimate growth and prosperity again, and manufacturing jobs are the key to our ability to compete in a global economy. Why? Because the physical shipment of U.S. goods to other countries is the most tangible way to balance the trade deficit and create sustainable growth and wealth, but of course we need to be cost competitive.
America has spent so many decades teaching the Chinese and others how to mass produce everything that one must question if we still possess the knowledge and talent to still produce goods ourselves.
Good news! There is a growing trend among U.S. companies to relocate manufacturing to U.S. plants. Known as on-shoring, the trend is gaining momentum as a weak U.S. dollar makes it costlier to import products from overseas. After decades of globalization, economists say companies are seeing disadvantages of offshore production, including shipping costs, complicated logistics and quality issues. Political unrest and theft of intellectual property pose additional risks.
Here are a few examples:
* Caterpillar is looking to move heavy-equipment production to a new plant in the U.S.
* General Electric is planning to move a Water Heater facility from China to Louisville, KY.
* U.S. Block Windows is moving its China operation to Pensacola, FL
* Haas Automation in CA has always competed on the basis of greater performance and value than its Chinese competitors.
Initially, these situations described have the advantage of being geographically closer to the U.S. market. Although they may not be able to cost-effectively exporting goods to other counties, they will be able to build up their skills and resources to become more competitive in a global economy.
How can we complete with countries that pay their workers pitiful wages?
This, of course, is changing on its own as workers elsewhere demand higher wages and benefits. Nevertheless, I strongly believe we should prohibit through law, the import of goods that have been produced elsewhere under conditions that would be deemed illegal in the U.S. We don’t allow the import of stolen vehicles or illicit drugs, so why do we allow a bicycle made in a factory employing minors that operates under conditions that the EPA and OSHA would find unsafe? To solve this, we simply need to export more lawyers, union organizers and whistle blowers. Heaven knows we have enough we can share.
Wages are not the only cost factor to consider. The sophistication of manufacturing tools, techniques and processes today has greatly reduced the number of employees needed to do repetitive, tedious tasks that can be better handled by robots and other automation equipment. As manual labor becomes a smaller portion of the manufacturing cost and automation takes on a larger portion of the heavy lifting, those companies who embrace lean manufacturing methods and quality control will have a genuine advantage. A viewing of National Geographic’s Ultimate Factory Program will demonstrate the true capabilities of America ingenuity.
Another benefit of on-shoring is that manufacturing companies require all types of skills to support a manufacturing enterprise. Designers, accountants, supply chain specialists, lawyers and the rest are all required. And yes, they need smart marketing communications!
I welcome all feedback!
