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U.S. manufacturing jobs fading away fast
Yahoo/USA Today ^ | Fri Dec 13, 7:48 AM ET | Barbara Hagenbaugh

Posted on 12/14/2002 10:22:42 AM PST by arete

ROCHESTER, N.Y. -- Charles Seitz remembers when Rochester was a bustling manufacturing town. Now, all the 58-year-old unemployed engineer sees is a landscape of empty buildings.

''There's nothing made here anymore,'' the former Eastman Kodak employee says, his eyes welling with tears as he talks about his struggle to find a new job. ''Wealth is really created by making things. I still adhere to that.''

It's a situation that's been playing out across the country for decades but has received increased attention in recent years.

Fifty years ago, a third of U.S. employees worked in factories, making everything from clothing to lipstick to cars. Today, a little more than one-tenth of the nation's 131 million workers are employed by manufacturing firms. Four-fifths are in services.

The decline in manufacturing jobs has swiftly accelerated since the beginning of 2000. Since then, more than 1.9 million factory jobs have been cut -- about 10% of the sector's workforce. During the same period, the number of jobs outside manufacturing has risen close to 2%.

Many of the factory jobs are being cut as companies respond to a sharp rise in global competition. Unable to raise prices -- and often forced to cut them -- companies must find any way they can to reduce costs and hang onto profits.

Jobs are increasingly being moved abroad as companies take advantage of lower labor costs and position themselves to sell products to a growing -- and promising -- market abroad. Economy.com, an economic consulting firm in West Chester, Pa., estimates 1.3 million manufacturing jobs have been moved abroad since the beginning of 1992 -- the bulk coming in the last three years. Most of those jobs have gone to Mexico and East Asia.

Last month, film giant Eastman Kodak -- the largest employer in Rochester and the central focus of the community since the company was founded by George Eastman in 1888 -- announced it was shutting down an area plant and laying off the 500 employees who make single-use, sometimes called ''throw-away,'' cameras. The work will now be done in China or Mexico, two countries where the company already has operations.

The movement of jobs to other countries angers Seitz the most.

''The United States got to where it is today by making things,'' he says. ''People are suffering, and communities are suffering.''


TOPICS: Business/Economy; Front Page News
KEYWORDS: allyourjobs; arebelongtous; crash; currency; depression; dollar; economy; freetrade; gold; investing; jobs; recession; silver; stockmarket; unemployment
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To: newgeezer
When ''making things'' is enough, the people live in 1-room apartments, they rejoice when the grocer has fresh bread and rutabagas, and they wait years for the chance to buy a Trabant.

Give the U.S. another 20 years, and that may be considered a good living standard.

Richard W.

21 posted on 12/14/2002 10:51:52 AM PST by arete
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To: arete
why don't we invest in robotics? robo made textiles, robo made furniture, ....
22 posted on 12/14/2002 10:52:50 AM PST by koax
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To: MrB
However, if we spread out our workforce (a resource) to produce all of these things, we wouldn't be doing what we do best.

Giving tours of downtown Toledo and selling insurance?

Richard W.

23 posted on 12/14/2002 10:53:36 AM PST by arete
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To: Joe Bonforte
1. National inflation-adjusted income continues to climb.

Big deal! This has no basis in reality. It's a number fudging game and means nothing to me. The cost of living goes up every year as my company takes away benefits, my taxes go up, the cost of clothing and goods go up.

2. Unemployment has gone down dramatically since introduction of NAFTA and GATT, despite the recent downturn.

Another number fudging game. People out of work for, what is it?, one year are no longer counted on the unemployment roll. That's absurd.

3. A global economy improves standard of living both here and in other countries, making war less likely, and making it more likely they will stay home instead of coming here as a penniless immigrant.

Complete fallacy. Have you ever heard of the laws of equilibrium? As their standard of livin goes up ours must come down.

I know you don't believe this but that is reality not some bean counters theory. I see it here where I work first hand. Immigrants come here and are happy to work for $8/hr because to them it represents an increase in their standard of living ten-fold. However, that same wage represents a reduction in the standard of living of someone else whose factory closed and this is the only job they can find.

24 posted on 12/14/2002 10:55:54 AM PST by raybbr
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To: newgeezer
Wealth is created by adding value. Manufacturing adds value but service adds value also. Manufacturing and providing a service at the same time is hard to beat.

Look at Gateway. Initially they manufactured and sold. They then created their retail centers and started providing a service to go along with their computer.

25 posted on 12/14/2002 10:56:54 AM PST by Ben Ficklin
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To: koax
Love the robots!

BTW- Greenspan says ".....once you remove all the things that have gone up in price from the equation, you'll find there really is no inflation".

26 posted on 12/14/2002 10:57:23 AM PST by norraad
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To: koax
why don't we invest in robotics? robo made textiles, robo made furniture, ....

In the Bush Administration, robotics are only used for cheerleaders.

robo want cheap, slave labor.

27 posted on 12/14/2002 10:57:59 AM PST by Willie Green
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To: newgeezer
There are two issues:

1) The movement of jobs out of the country - how to stop, counteract, or create higher paying jobs.

2) The high levels of personal debt which many individuals and businesses have acquired in this country - in some cases, through no fault of their own, but in other cases, with their eyes wide open.

Having crawled into and out debt more than once, I can tell you that it's far easier in this country to crawl into debt than get out, and our society in general encourages the same. The question is what is a definition of "living standard" - needs versus wants, necessities versus luxuries.

And being a thirty something, I have the advantage of assuming that social security will not be there for me and that any retirement I enjoy will be totally a result of my own efforts. I am sorry for the mid-fifties and sixties folks who are having the rug pulled out from under them in this regard...
28 posted on 12/14/2002 10:58:03 AM PST by Toirdhealbheach Beucail
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To: arete
Who is responsible for the loss of manufacturing jobs in the USA? One word answer: UNIONS! Who are making the manufacture of goods in the USA uncompetative. The unions wants more than 3X the wages, and benifits that other countries workers are willing to accept, yet the US workers productivity is only marginally better. This is just following the simple laws of Free Enterprise, no more, no less. Unions in the USA are very slow(or probably never) to accept that Americans, Malaysians, South Americans, Koreans,.... are all in the same BOAT, called EARTH. Work will go to the lowest cost.
29 posted on 12/14/2002 10:58:15 AM PST by desertcry
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To: MrB
"Actually, it's called comparitive advantange."

Not when you are competing with slave labor at $0.00 per hour.
30 posted on 12/14/2002 10:59:34 AM PST by HighRoadToChina
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To: arete
The more people they can put out of work in America and make their existance dependant on the largesse of the state, the faster America will approach a state where the people will have to give up soverenity and join the world government just to survive.
31 posted on 12/14/2002 10:59:55 AM PST by philetus
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To: cynicom
Perot was a kook remember?

------------------------------

Perot was one of the most intelligent and wise people in American politics. I voted for him and am pround of it.

32 posted on 12/14/2002 11:00:41 AM PST by RLK
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To: MrB
Other countries then have a comparitive advantage doing the manufacturing things so that we can use our resources in more efficient places.

Yes, and the $$$ we save purchasing their goods at a lower cost, can go into other areas of our economy, and support a higher standard of living.

33 posted on 12/14/2002 11:01:22 AM PST by Jorge
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To: general_re
And yet we have the highest per-capita income and the highest standard of living in the world. Ricardo still rules....

---------------------------

Hell yes. The lawyers working for the Clintons made millions. It averages in well to raise the economic statistics and we can all live vicariously through them. What a country!

34 posted on 12/14/2002 11:03:17 AM PST by RLK
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To: arete
slaves of the ruling class..... So, what's keeping you from becoming the " the Elite Puppet Master"?
35 posted on 12/14/2002 11:03:49 AM PST by desertcry
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To: RLK
I am still waiting for the day that a strong conservative steps forward to lead those of us that are not in love with the establishment socialists.
36 posted on 12/14/2002 11:04:09 AM PST by cynicom
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Comment #37 Removed by Moderator

To: RLK
If he hadn't acted like the guys in the white coats were constantly chasing him he might have made it.
38 posted on 12/14/2002 11:07:07 AM PST by raybbr
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To: Chi-townChief
I'm surprised that anyone has noticed since it's only been going on for about the past 45 years.

This is the "Quote of the Day"!

39 posted on 12/14/2002 11:07:58 AM PST by Fiddlstix
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To: Ben Ficklin
Look at Gateway. Initially they manufactured and sold. They then created their retail centers and started providing a service to go along with their computer

All those Gateway Country stores are now closing faster than they opened. That was a costly business mistake for them and I believe that they will not survive another year.

Richard W.

40 posted on 12/14/2002 11:08:26 AM PST by arete
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