A Plan to Save American Manufacturing

TradeAlert.org ^ | Wednesday, December 31, 2003 | Kevin L. Kearns, Alan Tonelson, and William Hawkins

[XBob]

http://www.tradealert.org/Images/Prod_ID444_1_2.jpg

http://www.tradealert.org/view_art.asp?Prod_ID=777

[afraidfortherepublic]

But manufacturing's DOLLAR INCOME, while growing every year from 1987-2000, finally took a dive, and a big one, in 2001, losing 6.6%--around $100billion.

My little company has mirrored that trend -- and we ARE high tech.

[XBob]

New Trade Figures Explode Standard Globalization Myths
http://www.freerepublic.com/focus/news/1050045/posts?page=4

[superloser]

it's much easier to paste labels than actually think about first things, isn't it?

Or read a history book or know the history of the GOP's stands on such issues through time.

Folks like this are going to get us a taste of Communism if not a full helping of it, as has been posted before, not by me, but by one who KNOWS better, one factory closure at a time.

[ninenot]

I did not include American citizens--only offshore assets (bldgs, machines, etc.)

[superloser]

What is your *Constitutional* solution to this?

Mine is tariffs. What's yours? Let them eat cake? Worked out well in France a couple hundred years ago, didn't it?

[ninenot]

Not so fast, searcher.

Small businesses are REALLY taking it in the chops this time around. Tool&Die shops with 5-25 employees, certain stamping outfits, etc.

[gooleyman]

I did not include American citizens--only offshore assets (bldgs, machines, etc.)

-----
But most companies send someone to those factories to get them started and American Employees go to these facilities from time to time. If they aren't subject to protection, they could be attacked at any time and there could be at least 1 American citizen in then at that time.

I don't know about where you work, but my company has overseas divisions and someone from my plant is over there probably a dozen times a year or more for various reasons. I wouldn't want them without the umbrella of U.S. Law and a potential iron fist if someone harms them. Terrorists don't care about attacking empty buildings. They want the carnage because that's what gets the headlines and adds to the terror effect, not bombing an empty building or breaking machinery.

[searchandrecovery]

Small businesses are REALLY taking it in the chops this time around. Tool&Die shops with 5-25 employees, certain stamping outfits, etc.

I was talking more generically (not just mfg). However, now that you've brought it up - small mfg - taking it in the chops. From what you've seen, is this pretty much across the board? How does this work - do they generally service larger co's.? Can they create products to sell on their own? Curious. Do you make a distinction between metal/wood/plastic (if this is a stupid question please tell me).

[ninenot]

You don't seem to understand my post.

We should declare, as a matter of policy, that firms who choose to offshore jobs (from American base operations) are placing those offshore assets at risk. 100% risk. Buildings, machines, intellectual property, the whole 9 yards.

The authors of the thread-head article already mentioned that OPIC, ExIm, and other taxpayer-financed incentives for building offshore facilities should be eliminated.

Why the blazes should US justice apply to foreign entities?

I understand the concern you have for your colleagues; maybe your employer will think twice about offshoring if they would lose several experienced people.

BTW, terrorism has nothing to do with this. Confiscation of assets or I.P. by foreign countries has EVERYTHING to do with it.

[Paul Ross]

The measure and UNASSAILABLE evidence of U.S. manufacturing's decline is right in front of the Cato-apologists..and their noses need to be rubbed in this mess like the bad puppies they are:

The $550 Billion/year trade deficit...slated to grow to $1.5 trillion....

Yup, when the CATO-rhetoricians assertions get too tendentious...just ask them why the trade deficit has not ended. They just hate that: "Pay no attention to the man behind that curtain!!!!!!!"

This is the best compilation of policy correctives to restore U.S. competitiveness to date. Ronald Reagan would have adopted this in a heartbeat (indeed, many of these things are lifted right out of policies he implemented with both trade restrictions and R&D subsidies)...and NOT waited to do the right thing until after getting re-elected.

[ninenot]

I've pinged Afraid because she owns a small company...

Small firms often start by removing a 'non-value-added' operation from a bigger firm. For example, I know of a very successful small business which removes paint from sheet metal (sloppy paint job, not-quite-perfect coverage, etc., etc.)

The Company started when an individual who worked for a larger company which painted its products began to notice that REMOVING the paint was a necessary and expensive pain in the nose.

So yes, small companies often serve larger ones.

Sometimes they have a product line which is unique; sometimes not.

In this State, metal-parts suppliers have been told by Ford, GM, Chrysler (and others) that if they do NOT have a facility offshore (e.g., NOT in the USA) they will not be allowed to bid on work from the Big Three.

So if they are big enough, roughly $30MM+ in sales, they might be able to put up an offshore facility. If they are smaller than that, it's not going to be a rosy future.

If they are VERY small, it's possible that they will be history during 2004 or 2005.

[Paul Ross]

You fail to comprehend that it IS the automated super-technology manufacturing leaving our shores.

As just one example: Steel production in the US is among the most automated capital-intensive in the world. Not even the Japanese eclipse us there. Yet we will lose our industry despite our superior productivity...and then the steel market prices here will balloon.

This will be replicated in every industry you can name.

[afraidfortherepublic]

GE Medical may soon be on that list. They are demanding across-the-board cost reductions from their suppliers plus 75 day terms and are planning to reduce the number of their suppliers by 3/4 in 2004. In the mean time they have shipped all of thier purchasing and most of their accounting functions to India. It's a real problem when there is an error -- takes forever to straighten out. Everybody loses.

[afraidfortherepublic]

At this time, NAM officials are speaking for the Fortune100 types, albeit they are agonizing over it.

100% correct. We shall not be renewing our NAM membership in 2004.

[searchandrecovery]

In this State, metal-parts suppliers have been told by Ford, GM, Chrysler (and others) that if they do NOT have a facility offshore (e.g., NOT in the USA) they will not be allowed to bid on work from the Big Three.

Very sad. Do you have any links to news stories/documents/meetings about this? First I've heard of this. Must go throw a big rock at something.

[Paul Ross]

Your CATO-aspersions against a clear 'captialist' patriot (one who wishes us to PRESERVE our U.S. capital rather than see it all fall to China) strongly implies that you are a communist agit-prop agent flying under false colors. All your shrill whining does, along with your imprecations, is support aiding and abetting COMMUNIST CHINA assume global technological and industrial ascendancy.

Globalist 'Free-Trade' Communists routinely attack those who best them in argument with some major pejorative, such as 'Intellectual' or in your case mislabel nationalists as 'socialist' or 'union-lover'. Doesn't sound like you believe much in the constitutional right of freedom of association. Could be you don't believe in the Constitution at all.

[ninenot]

You mean that "75-day" terms turn into 8-month terms? Oh, the shock!!!

Most GE products are already made offshore, with the exception of some refrigerators, lightbulbs, GEMed products, and jet engines.

And most of the COMPONENTS of all GE products are made offshore, period. They force suppliers to offshore production by their purchase methods.

Interesting--I think I know, well, the individual who pulled that trigger at GE.

[afraidfortherepublic]

We are in electronic assembly for original equipment manufacturers -- industrial power supplies, medical devices, printing, etc. We are taking it in the chops.

[Paul Ross]

You are apparently not 'thinking outside the box' but rather have U.S. capital, R&D, technical engineering, and manufactures being shoved into a 'Lock Box'--one owned by the Chinese Communist Party.