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Goodbye, Production (and Maybe Innovation)
The New York Times ^ | December 24, 2006 | Louis Uchitelle

Posted on 12/31/2006 6:25:30 AM PST by A. Pole

AMERICAN manufacturers no longer make subway cars. They are imported now, and the skills required to make them are disappearing in the United States. Similarly, imports are an ever-bigger source of refrigerators, household furnishings, auto and aircraft parts, machine tools and a host of everyday consumer products much in demand in America, but increasingly not made here.

[...]

the experts shifted the emphasis from production to design and innovation. Let others produce what Americans think up.

[...]

But over the long run, can invention and design be separated from production? That question is rarely asked today. The debate instead centers on the loss of well-paying factory jobs and on the swelling trade deficit in manufactured goods. When the linkage does come up, the answer is surprisingly affirmative: Yes, invention and production are intertwined.

"Most innovation does not come from some disembodied laboratory," said Stephen S. Cohen, co-director of the Berkeley Roundtable on the International Economy at the University of California, Berkeley. "In order to innovate in what you make, you have to be pretty good at making it — and we are losing that ability."

[...]

Franklin J. Vargo, the association’s vice president for international economic affairs, sounds even more concerned than Mr. Cohen. "If manufacturing production declines in the United States," he said, "at some point we will go below critical mass and then the center of innovation will shift outside the country and that will really begin a decline in our living standards."

[...]

"It is hard to imagine," Mr. Tonelson said, "how an international economy can remain successful if it jettisons its most technologically advanced components."

[...]

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Culture/Society
KEYWORDS: alasandalack; depression; despair; doom; dustbowl; freetraitors; grapesofwrath; jobs; manufacturing; market; outsourcing; technology; trade; unions
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To: narby

It would really hurt you alot to spend a few more bucks, out of those hundreds, to have your widgets made in the USA.


101 posted on 12/31/2006 8:07:22 AM PST by gas0linealley
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To: kerryusama04

"The problem comes when the cookie cutter MBA's try to shoe horn every industry into the management fad of the day while never even glancing up from the spread sheet."

They'll bang their heads repeatedly on a brick wall if the spreadsheet says so, without ever questioning the inputs, and will smugly pat themselves on the back for their genius while doing so. Been there, done that, in the textile industry. I saw the handwriting on the wall in the mid-nineties and bailed, went into business for myself. Trouble is, now many marketing functions are migrating as well, such as photography and printing, which is my field. I'll have to reinvent myself, again; I clearly see it coming. This is just getting tiresome. And costly. I can't imagine how people with less education and/or resilience are fairing, with so much upheaval. I'll end up a broker of some kind, sending everything to China or Korea. Over half of my customers already do.


102 posted on 12/31/2006 8:07:52 AM PST by RegulatorCountry
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To: gas0linealley; All

Yes it would... I would like to get the best bang for my buck.....


103 posted on 12/31/2006 8:08:50 AM PST by KevinDavis (Nancy you ignorant Slut!!!!!)
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To: DB

Not now, but if the current trend continues, the Chinese will be the only ones that make heavy duty weapons. WE couldn't start up production facilities fast enough if they decided to invade us.


104 posted on 12/31/2006 8:09:21 AM PST by antisocial (Texas SCV - Deo Vindice)
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To: Constitutional Patriot
so that it makes a lot more sense to make your goods in countries where there are no unions. slaves
105 posted on 12/31/2006 8:09:40 AM PST by hedgetrimmer (I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)
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To: antisocial

We make tanks, ships, subs, missiles, guns, bullets, transporters, bombers, nukes, fighter jets, ICBMS and lasers here. That will not change. And ours will sink or destroy the chicoms versions of these very quickly.


106 posted on 12/31/2006 8:12:11 AM PST by pissant
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To: Lurker

Another one who spouts off "Buggy Whip". Again, stoplistening to Limbaugh and stop reading the WSJ op ed pages. How many times does this have to be explained. When autos replaced horse and buggys, the workers who made buggy whips simpily used their skills to start makings cars. There was little, if any retraining required, it was basically a lateral move.


107 posted on 12/31/2006 8:13:12 AM PST by RFT1
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To: A. Pole

"Are you saying that Romans were in the same economic system than Spanish? Yet the same general rule applies."

I'm saying no one, even during the 'globalization' of the early 20th century, was in a comparable scenario. So, no, the same general rules don't really apply. We don't have to take from someone else to grow our economy. There isn't a finite global GDP pie. We aren't a tiny population militarily subjugating our far-flung lands and drawing revenue from them. For every 'similarity' you can cite, it can either be reduced or off-set by a long line of differences.


108 posted on 12/31/2006 8:14:18 AM PST by Sandreckoner
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To: Sandreckoner
What matters is whether that $27-per-hour worker is pricing his employer's goods out of the market.

What market are you talking about? The market that is flourishing because even the "untalented" have money to spend?
109 posted on 12/31/2006 8:14:52 AM PST by gas0linealley
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To: Malsua
Designing things and making them are two different issues entirely.

Ask a person responsible for production if he's ever seen a product that couldn't be produced as designed. Ask someone responsible for maintenance what good design is.

There is a certain amount of feedback that goes on between production and design that is essential to innovation.

110 posted on 12/31/2006 8:14:58 AM PST by lucysmom
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To: Sandreckoner
What matters is whether that $27-per-hour worker is pricing his employer's goods out of the market.

He sure did a number on the steel industry back in the 70's and 80's. Ask the average LTV retiree how he likes his pension these days.

111 posted on 12/31/2006 8:17:12 AM PST by hinckley buzzard
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To: A. Pole

I work in R&D for a multinational manufacturer. Our R&D site was inside our most productive plant in the U.S. and we had a great relationship with engineering and production. When they closed the plant and shipped manufacturing to Mexico, quality took a big hit, but we made more money with a 50% yield there than a 98% yield here. The problem came when R&D needed to give engineering support for operations in Mexico. It took me almost 2 years to get something done that would have been a 3 week project because of the pure incompetence of the Mexican facility to follow simple instructions. They do things in a way that's easy for each individual department without regard to the downstream effect on the rest of the operation. For R&D development, they basically did what they wanted and ignored the entire protocol. That meant doing things over and over and over. The article is spot on. No manufacturing here, then R&D gets disconnected from reality.


112 posted on 12/31/2006 8:18:14 AM PST by doc30 (Democrats are to morals what an Etch-A-Sketch is to Art.)
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To: BipolarBob
Welcome to the Global Economy. This is what it's all about - bringing down this great nation. History will once again shake its head and say WHY didn't they see this one coming? Who will bail out the US when it goes down?

You have no idea what you're talking about, IMO.

Creating ready, willing and able consumers will have more positive results for our economy.

I recently read that 100% cashmere sweaters made in China are only $22.00.

I guess to your way of thinking, that means all the people in our soup lines will be warmer wearing one.

113 posted on 12/31/2006 8:18:33 AM PST by DCPatriot ("It aint what you don't know that kills you. It's what you know that aint so" Theodore Sturgeon))
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To: NonValueAdded

You think that there is little market for subway cars? I think you're mistaken.


114 posted on 12/31/2006 8:19:02 AM PST by gas0linealley
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To: A. Pole
The dead hand of government regulation is also hurting America. But, what else is new?

http://www.freerepublic.com/focus/f-news/1746254/posts

115 posted on 12/31/2006 8:19:51 AM PST by Gritty (Every decent man is ashamed of the government he lives under - HL Mencken)
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To: Condor51

Yep.


116 posted on 12/31/2006 8:21:53 AM PST by rabidralph (Happy New Year, y'all!)
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To: dljordan
I made that comment in a report I sent to HR and they never said a word. I thought they would have least been insulted but maybe they thought it was a compliment.

They probably never even read it.

117 posted on 12/31/2006 8:22:54 AM PST by hinckley buzzard
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To: RaceBannon

"The last company I did drawings for, sent their drawings to China, who sent back the parts to here, where this company hired all temps to assemble the parts at less than $10 an hour, to then send the parts back to China for final assembly into refrigerators for resale in the U.S.!!"

The Chinese have zero respect for intellectual property. The time will come, when they beat you to market with a knockoff of your own product. I hear it time and again from my customers who are sourcing in China. In certain instances, it's gotten so bad that the knockoff is perceived as the original.


118 posted on 12/31/2006 8:24:22 AM PST by RegulatorCountry
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To: KevinDavis
Same crap I heard when Reagan was President.......

Yep. Hysterics about "shipping our good highpaying jobs overseas" was a plank in the Walter Mondale platform, 1984.

119 posted on 12/31/2006 8:27:11 AM PST by hinckley buzzard
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To: KevinDavis
Yes it would... I would like to get the best bang for my buck.....

According to reports of how much China is spending on its military buildup, you may just get your wish.
120 posted on 12/31/2006 8:28:37 AM PST by gas0linealley
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