The United States produces 18% of what the entire world consumes. We are a manufacturing powerhouse in spite of what you hear on the news or read in the papers (if you read papers anymore).
Many believe labor costs are a large part of the total cost of production of most manufacturing industries and that the wage differential is too large for virtually any manufacturing to be done competitively in the United States as opposed to China, Vietnam, and other parts of developing Asia. This is in fact not the case. Consider that countries like Germany, Switzerland, Sweden, and Japan have wage and benefit costs far higher than those in the United States yet they maintain manufacturing sectors twice as large as a percent of GDP as the United States.
In industries like semiconductors, machine tools, specialty machinery, pharmaceuticals, autos, nano technology, optical fiber, and many many more labor cost is a small part of the total cost and can easily be offset by economies of scale, transport cost, superior quality, special design, superior customer service, and lower risk and capital costs.
Most of the value in the Apple iPad for example is in parts that are not made in China. Only about $7 worth of assembly occurs in China.
We must overcome the notion that manufacturing cannot be done profitably in this country. Many people see a manufacturing career or starting a manufacturing business as a dead end as all manufacturing will ultimately be done in low wage countries. That could not be further from the truth or reality. We do manufacture here and there are thousands if not millions of good jobs in the manufacturing sector. Skills are critical, technology is critical, capital is critical to the manufacturing sector. Manufacturing jobs will not be replaced like agricultural jobs were replaced in the last century. Manufacturing jobs are here and will continue to be some of the best paying jobs in the economy.
We still make paint and cement blocks and motorcycles. We still make mining equipment and aluminum. We make the silicon for solar panels and the copper for wire. We make shingles and lumber, wallboard (from recycled stack gases at power plants) and furniture. We make missles, tanks and submarines. We make bombs and rockets. We make wooden pallets to ship stuff on. We make ice cream and sour cream. We make gasoline and kerosene, diesel fuel and cooking fuel and charcoal.
We make medical devices and semiconductors. We make actuators (motors for moving or controlling a mechanism or system); aviation restraints; fire hose nozzles; friction modifiers (additives used in lubricants to reduce the surface friction of lubricated parts); industrial band saw blades; medical cabinets; surgical face mask filters; and vinyl siding. We make air filters; airless paint sprayers; cutting tools; hard hats; lipstick; microwave containers; security access devices; and solar window coverings. We make compression latches; dental chairs; drilling rigs; electric motors; elevators; pneumatic valves and spectrophotometers.
Look around you and the next time someone says we don't make anything in America anymore you can politely contradict them.
Many believe labor costs are a large part of the total cost of production of most manufacturing industries and that the wage differential is too large for virtually any manufacturing to be done competitively in the United States as opposed to China, Vietnam, and other parts of developing Asia. This is in fact not the case. Consider that countries like Germany, Switzerland, Sweden, and Japan have wage and benefit costs far higher than those in the United States yet they maintain manufacturing sectors twice as large as a percent of GDP as the United States.
In industries like semiconductors, machine tools, specialty machinery, pharmaceuticals, autos, nano technology, optical fiber, and many many more labor cost is a small part of the total cost and can easily be offset by economies of scale, transport cost, superior quality, special design, superior customer service, and lower risk and capital costs.
Most of the value in the Apple iPad for example is in parts that are not made in China. Only about $7 worth of assembly occurs in China.
We must overcome the notion that manufacturing cannot be done profitably in this country. Many people see a manufacturing career or starting a manufacturing business as a dead end as all manufacturing will ultimately be done in low wage countries. That could not be further from the truth or reality. We do manufacture here and there are thousands if not millions of good jobs in the manufacturing sector. Skills are critical, technology is critical, capital is critical to the manufacturing sector. Manufacturing jobs will not be replaced like agricultural jobs were replaced in the last century. Manufacturing jobs are here and will continue to be some of the best paying jobs in the economy.
We still make paint and cement blocks and motorcycles. We still make mining equipment and aluminum. We make the silicon for solar panels and the copper for wire. We make shingles and lumber, wallboard (from recycled stack gases at power plants) and furniture. We make missles, tanks and submarines. We make bombs and rockets. We make wooden pallets to ship stuff on. We make ice cream and sour cream. We make gasoline and kerosene, diesel fuel and cooking fuel and charcoal.
We make medical devices and semiconductors. We make actuators (motors for moving or controlling a mechanism or system); aviation restraints; fire hose nozzles; friction modifiers (additives used in lubricants to reduce the surface friction of lubricated parts); industrial band saw blades; medical cabinets; surgical face mask filters; and vinyl siding. We make air filters; airless paint sprayers; cutting tools; hard hats; lipstick; microwave containers; security access devices; and solar window coverings. We make compression latches; dental chairs; drilling rigs; electric motors; elevators; pneumatic valves and spectrophotometers.
Look around you and the next time someone says we don't make anything in America anymore you can politely contradict them.
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