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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: A. Pole
"In order to innovate in what you make, you have to be pretty good at making it — and we are losing that ability."

My father is a woodworker, and highly skilled. He renovated a 110 old house to period, can build kitchen cabinets without giving it a second thought, has made many, many pieces of furnishings... I could go on. He started out as a teenager making duck decoys. And then progressed from there.

At one point he was trying to explain to a group of people what a knife for a lathe was, what a router was and how it worked... and how a woodworker must CUT the plank of wood to the right shape, sand it, stain it, varnish it... as well as assembly.

These people looked at him dumbfounded. They didn't know people MADE things like that. They thought that if you wanted cabinets, you ordered them at Loews.

It makes me laugh because people don't realize the amount of work that goes into making something. First you have to have the idea, then design it, then try to make it... THEN you can spend countless hours "tweeking" it until it works properly.

Things don't just snap together on their own. And if your dining room table is just a snapped together piece of cardboard, why waste your money? Eat over the kitchen sink instead... THAT'S more practical, right?

261 posted on 12/31/2006 2:18:48 PM PST by Pan_Yans Wife
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To: durasell
Data of what?
262 posted on 12/31/2006 2:18:49 PM PST by 1rudeboy
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To: 1rudeboy

The number of engineers flooding the field in India and China. Supply and demand -- the more engineers there are, the lower the average salaries.


263 posted on 12/31/2006 2:22:19 PM PST by durasell (!)
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To: durasell

If you look at the WSJ article I posted just above, you'll note that engineer salaries are rising in most, if not all, branches.


264 posted on 12/31/2006 2:23:32 PM PST by 1rudeboy
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To: durasell
Supply and demand, survival of the fittest, adapt or die, dance or cry.....

The smart get richer, the ignorant get bitter, such is life, either figure it out or wind up in mediocrity.

Somewhat simple really....
265 posted on 12/31/2006 2:27:01 PM PST by PSYCHO-FREEP (n)
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To: 1rudeboy

According to the source the WSJ used, it looks like MBA is the place to be:

BETHLEHEM, PA—The hiring outlook is bright for Class of 2007 M.B.A.s, according to a new report from the National Association of Colleges and Employers (NACE).

Employers responding to NACE's Job Outlook 2007 survey reported plans to hire 22 percent more M.B.A. graduates from the Class of 2007 than they hired from the Class of 2006.

"Projections for M.B.A. hiring are in line with what we're seeing in the job market for new college graduates as a whole," says Marilyn Mackes, NACE executive director. "Employers reported plans to increase their college hires by more than 17 percent this year."

By sector, manufacturers have the most aggressive hiring plans. Survey results show that manufacturers expect to hire 32.4 percent more M.B.A.s in 2006-07 than they hired in 2005-06. Service employers plan a 15.4 percent increase.

By region, employers in the South, projecting an increase of approximately 59 percent in M.B.A. hiring, are planning the largest increase, closely followed by employers in the Midwest who expect to up their M.B.A. hires by about 51 percent. Projecting less dramatic hiring increases are employers in the Northeast (14.6 percent) and West (13.5 percent).

Respondents also reported salary plans for newly hired M.B.A.s. More than 40 percent said they will offer new M.B.A. hires an annual base salary of more than $75,000. However, the largest group of respondents (approximately 47 percent) indicated they will offer a base salary ranging from $50,000 to $75,000.



266 posted on 12/31/2006 2:30:22 PM PST by durasell (!)
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To: PSYCHO-FREEP
Unfortunately for many, mediocrity is now defined as a cardboard box under a freeway overpass. The middle ground --and the sacred middle class -- are on shaky ground indeed.
267 posted on 12/31/2006 2:32:20 PM PST by durasell (!)
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To: SauronOfMordor
It greatly depends on what you make. Some things are pretty easy to protect and others are not. Either way anything that they can steal they will steal regardless of where it was made.

Everything that is patented is made public for anyone that has no scruples to steal. China and others can use it as a how-to technical library online... Patents include everything from how things work to how to manufacture them.

The idea that somehow not making things overseas will protect it from theft is false.
268 posted on 12/31/2006 2:34:34 PM PST by DB
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To: Regulator

The red ink has everything to do with our system of credit and our individual behavior and zippo to do with manufacturing things overseas.


269 posted on 12/31/2006 2:36:18 PM PST by DB
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To: patton
Right now I live in a house constructed around 1910. Over the years, its been rewired, gotten a new furnace, and the plumbing, pipes - not fixtures, has been updated. But where do you get the idea that it would have to be re-framed or reinforced for earthquakes? It has been through one major quake and numerous smaller quakes without suffering one bit of damage. The inspector I had look it over after the major quake was very impressed with the quality of construction and materials used.

The point I was trying to make was that there would be a continuous demand for new refrigerators even if the old ones were built to last because the number of new households is constantly increasing as are the number of new office buildings; and eventually the old ones would ware out.

Perhaps if appliances were built to last, the average American consumer would have a couple of bucks in the bank.

270 posted on 12/31/2006 2:37:50 PM PST by lucysmom
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To: org.whodat

What does the unearned tax credit have to do with wealth in this country?

Zip.

I could own outright a million dollar home and get the unearned tax credit.


271 posted on 12/31/2006 2:38:15 PM PST by DB
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To: durasell
I know plenty of talented engineers (and software whizzes) who are out of work because they got outsourced and art guys who are flourishing because it's more difficult to outsource their work, which is "culture based."

Engineers are suppose to be problem solvers. If they are unemployed, they have a problem they need to solve. It might require a career change or a move..

272 posted on 12/31/2006 2:56:43 PM PST by EVO X
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To: RFT1
You were wrong when you said that to me and you are STILL wrong, now, posting that to someone else!

People who made buggy whips were artisans. That skill simply did NOT transfer to working on an assembly line, making pieces for Fords.I suggest that you go and find out HOW buggy whips were made; from start to finish and while you're at it, explain to us all, how those making whale oil lamps were so easily moved into positions making light bulbs. Oh yes, and do, please also explain how those who had machines for making rubber products immediately, after WW II, used the same machines and workers to make things out of plastic. LOL

273 posted on 12/31/2006 3:02:36 PM PST by nopardons
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To: Black Birch

The best engineers are problem solvers. And they are like gold. Unfortunately, there are too many in the field who can only solve problems that have been solved previously.


274 posted on 12/31/2006 3:03:42 PM PST by durasell (!)
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To: durasell
Unfortunately for many, mediocrity is now defined as a cardboard box under a freeway overpass. The middle ground --and the sacred middle class -- are on shaky ground indeed.

I think I saw that written on a Congressman's website. Conyers or Rangel, don't remember.

275 posted on 12/31/2006 3:12:45 PM PST by 1rudeboy
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To: DB
The idea that somehow not making things overseas will protect it from theft is false.

I've posted much the same many times. Nothing in the world is stopping you from buying a Honda Civic and taking it apart in your garage.

276 posted on 12/31/2006 3:14:58 PM PST by 1rudeboy
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To: hinckley buzzard
The American steel business was crippled and then ruined by the UNIONS! This goes way back and between the constant strikes and blackmailed gross wages, not to mention "ghost jobs", has been the cause of America's steel manufacturing decline. That has had it's effect on such disparate things as car bodies to girders for buildings.

If you aren't old enough to remember, please go look up what the steel unions were pulling during JFK's administration.

277 posted on 12/31/2006 3:17:35 PM PST by nopardons
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To: BW2221

JFK was full of platitudes, thanks to his speech writers. When it came to handling Unions, he was even less effective as than the BAY OF PIGS fiasco.


278 posted on 12/31/2006 3:20:27 PM PST by nopardons
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To: nopardons
The American steel business was crippled and then ruined by the UNIONS!

That, and the total refusal on the part of steel companies to reinvest profits into new innovation or efficiency gains.

279 posted on 12/31/2006 3:22:23 PM PST by NittanyLion
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To: lucysmom

I'll give you the T.V.s, but NOT the iceboxes.


280 posted on 12/31/2006 3:23:55 PM PST by nopardons
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