Oh, I see,,we can't rebuild it.
Take for instance the great American machine tool industry that led the world into the 1980's. It is no more.
Why?
As far as your call to "get competitive" it is a great challenge when shackled by a government that seeks to regulate and tax the productive and one whole political party is bought and paid for by belligerent unions.
Ummm, I never said to get competitive. I said we weren't. The reasons are the ones you just named. Now,,,what do you think is the right way to fix the problem? Change the government policies,,,or get them to start a trade war?
So far, we still live by a popularly elected government. If the people want to be UN-shackled, they can be. It's up to them. If they don't value it enough, they won't. It's simple.
Not without the national will to do so.
As a nation we are preoccupied with consuming and instant gratification rather than producing and we will mortgage whatever productive assets we have to keep consuming. Look how consumers are given tax breaks (IE mortgage deductions) producers are taxed. Manufacturing requires much patient capital to build up plant and equipment. I don't see that changing either in a next quarter results based management system.