Let's get real folks. Manufacturing still has a very important role in sustaining a robust American economy. We have said it time and time again, President Obama gets it. He's done more to support the strengthening of our Manufacturing sector since Eisenhower in the post WWII era, and JFK igniting the Race to the Moon in the 60's. BRD is looking forward to 4 more years of the President pounding this issue home. Pay attention civil servants and service sector folks, you need a strong US Manufacturing sector to pay your bills.
In a new article at the Washington Post, Ro Khanna dispels popular myths about US manufacturing.
Khanna, a deputy assistant secretary of commerce from 2009 to 2011, is the author of “Entrepreneurial Nation: Why Manufacturing Is Still Key to America’s Future.”
1. A manufacturing job is no longer a ticket to the middle class.
There is no doubt that America’s manufacturing base has declined, peaking at 19.6 million jobs in 1979 and now at just over 11 million jobs. Despite this economic transition, however, U.S. manufacturing jobs are still worth having. On average, full-time manufacturing work pays 20 percent more than full-time service-sector jobs. ...
2. We can outsource manufacturing as long as product design stays here.
Andy Grove, the former chief executive of Intel, has famously argued that the best innovation takes place when design teams are integrated with production teams. Product designers can get feedback about the practical constraints involved in manufacturing and can fine-tune their designs accordingly.
Apple has said that it is investing $100 million in new U.S. plants — a move hailed as bringing manufacturing back to our shores. However, Apple has always done most of its prototype manufacturing in the United States. ...
3. U.S. manufacturing can’t compete with China.
Over the past decade, the growth of Chinese manufacturing has exceeded America’s, so for the first time, China has taken the lead in global manufacturing. Yet, for all the hype about the BRIC economies — Brazil, Russia, India and China — the United States remains neck-and-neck with China in manufacturing output, and we still far outstrip such traditional powerhouses as Japan and Germany. ... U.S. manufacturing workers are almost six times as productive as Chinese workers and 11/2 times as productive as those in Japan and Germany. ...
4. Manufacturing jobs are repetitive and low-skilled.
If you think of manufacturing as a tedious job with no intellectual stimulation, you haven’t visited a U.S. factory floor lately. Whether making steel bars or suits for firefighters, many of today’s manufacturing jobs require the ability to operate complex machines, math skills and an understanding of how to maximize efficiency.
...
5. Government is terrible at supporting manufacturing.
America has long had a bipartisan consensus favoring government support for private manufacturers. In 1791, Alexander Hamilton argued that the nation should provide incentives and assistance to manufacturers to compete in the world economy. Even Thomas Jefferson came around to the view that government has a stake in building domestic manufacturing.
... Herbert Hoover ... provided financial support for the aviation industry. Ronald Reagan supported ... semiconductor industry.
Of course, America’s free-enterprise system is what enables our manufacturers to be the most innovative. No one is suggesting that the government pick winners or losers. Some bets on new companies, such as Solyndra, are bound to fail.
But such failures should not deter the government from investing in DARPA, a strategic agency at the Defense Department, or ARPA-E, a strategic agency at the Energy Department, which can propel innovation, new technologies and new industries. We also must help keep manufacturers at home through tax incentives, attract immigrants and better prepare a skilled workforce. And we must continue the collaboration between government and business that helped make America an economic superpower.
Full article at
WashPo
