Why U.S. Manufacturing Won't Die

WSJ ^ | July 3, 2003 | CLARE ANSBERRY

[edsheppa]

What role will U.S. manufacturing play in the national and global economies in the coming years? What jobs will be left for American workers?

It's more than an academic question for many company owners. Stan Donnelly, who owns Donnelly Custom Manufacturing Co. in Minnesota, is studying Mandarin in case he has to move his machines to China. Already, he buys molds from China to make his custom-designed plastic parts. To date, Mr. Donnelly has been able to keep production of those parts in the U.S. But as his customers increasingly demand lower prices, he wonders if he will one day need to move production to Asia as well.

[boycott]

A few jobs may be created but a lot more will be lost. I am sick of us worrying about taking care of everyone else. We need to take care of our neighbors. The USA has to come first.

[Archangelsk]

I've subscribed to the WSJ for years, this is by far one of the stupidest things I've ever read out of it.

[Brian S]

We need to take care of our neighbors.

Oh, we are taking care of our neighbors quite nicely. However, you and I will need a passport to visit those "neighbors".

It's that "New World Order, vision thing", you know!

[Moonman62]

Thanks for the article. The chart says it all. For centuries, productivity increases have been freeing up employees to take better higher paying jobs, and it lowers costs, too, except where the government implements subsidies or price supports.

[Straight Vermonter]

My company has thousands of jobs that could have been created here in the states. They were instead created in Singapore and Ireland because the governments give massive tax credits and the workers are (sadly) better educated.

[Moonman62]

Is Das Kapital more to your liking? There's a big focus on industrial production, tangible goods, and the ultimate elevation of backbreaking, manual labor in that book.

[Malsua]

I'm intensely aware of the push for cheap labor.

In fact, one of my goals is to make the equipment in our plant work faster and easier. I write front-end software (to get data from a 400) as well as do mechanical design and piece shuttling.

If I get piece rates up high enough, I don't export that job to China, Malaysia, Thailand or elseware. I work my tail off on these issues. Trust me on this, I don't like that my company has sent some of it's capacity to Asia.

I am actively working to make old equipment faster and digital and new equipment make it so cheap that it's senseless to ship offshore.

As a consumer, there are some things YOU can do to help maintain jobs here in the USA. Sounds wierd, but it's true. When you buy things, get them customized/personalized/specialized (I.E. made to order) and require it immediately. Order something from my company, in large quantities and give us 6 weeks and the work goes offshore. Customer service handles it in Canada, Malaysia or Thailand makes it, Mexico processes the bank transaction and the product hits the shore in CA and ships to you.

Order something and you want it this week...the product is made here in the states, Customer Service in my building handles it and the local Fedex/UPS/etc ships it to you in several days. You pay a premium for this "service". Call it the "USA Tax" :).

For this reason, there will always be capacity in the US. Air shipping something from Malaysia will always offset the labor savings.

Of course this doesn't apply to mass marketed items, but personalized/Customized/Specialized items almost always award the money to the US. Exceptions of course are items like custom order BMWs or whatever.

I've been told that if I can get piece rates up on certain equipment, it won't ship out after I make it. Hence, I think big. 10,000 pieces per shift, personalized. At that rate, going offshore and dealing with errors and time delays and they just do it in house. Accountants in fact make them do it. These are my goals in my tiny fishbowl. I loathe the fact that I go to mainland China and "teach" jobs that Americans can do.

I go to China on the 25th of this month for an Install. Next year I want to do better so that doing the work in China simply doesn't make sense.

[Cacique]

ping

More BS from the internationalist WSJ

[edsheppa]

Don't mention it, it was my pleasure - I couldn't pass up a chance to piss off the gloom'n'doomers. I was rather surprised it hadn't been previously posted.

[templar]

The chart says it all. For centuries, productivity increases have been freeing up employees to take better higher paying jobs,

Could you explain? Maybe I don't read charts well, but it looks like employment has been going down for about 30 years with output greatly increasing.

[MissAmericanPie]

Like the CEO of Boeing said, "Americans are not entitled to their standard of living". Believe me, as long as we allow foreign ownership of our major companies, and allow foreigners to buy valuable property here, we won't keep our standard of living. Unless our government engages in Fair Trade via tariffs, the poor will get poorer.

Free Trade is the worse enemy the USofA has ever come up against. Our government is sold out to corporations, and foreign agendas.

[Moonman62]

That chart is for employment in the industrial sector only.

[templar]

That chart is for employment in the industrial sector only.Isn't that what the article is about? If not, why the title? I'm very aware of the growth in things like government jobs, but manufacturing is what we are losing to foreign countries, not (unfortunately) government jobs.

[templar]

In fact, U.S. manufacturers are increasingly worried about a serious projected shortage in skilled machinists...

I know several who are out of work. At least one very highly skilled one (tool & die maker) that has left the trade permantly because of the lack of jobs in the U.S.

[stboz]

Dude, teach 'em the wrong way. Screw 'em.

[SpeakLittle_ThinkMuch]

Now don't let "Willie" see this....his head will explode!

[Moonman62]

There's been huge growth in service sector jobs. And as far as government goes, why doesn't productivity gains have an effect on it? Politicians are stealing us blind.

[btcusn]

The chart says it all. For centuries, productivity increases have been freeing up employees to take better higher paying jobs,
Translation, more productivity=less workers=more layoffs.
People wonder what ever happened to employee loyality to the company. Guess what, it works both ways. Reduce the manufacturing work force, but don't try to keep the workers and retrain them, cheaper to hire a new worker and train than to pay for the seniority AND training.
Jack

[Malsua]

>>Dude, teach 'em the wrong way. Screw 'em<<

If it were that easy. It's not. If something doesn't work, it's my problem to fix. I'm not like that anyway. I make everything work, it's why they pay me decently well.

It's better for me to solve the problem better rather than complicating overseas. If I can make the process work better here in the states, I do so.