Tag Archives: economy

America’s Manufacturing Future

A Wake-up Call From Asia [the broken link was removed] by Patricia Panchak [the broken link was removed]:

China and India very aggressively are pursuing advanced manufacturing. Increasingly, China’s exports to the U.S. are composed of advanced-technology products.

J.P. Morgan said it would add 4,500 employees in India by the year 2007, mainly by setting up operations in Bangalore to support its growing structured finance and derivatives businesses globally. Such jobs are not the simple, low-value call-center work that up to now we’ve associated with this developing economy. And J.P. Morgan isn’t alone; UBS and Goldman Sachs earlier made similar announcements.

From my previous post, Relative Engineering Economic Positions:

The hope some retained that the United States would retain the highest end work and others would work on the less complex work is not what the future holds. The future will prove to be an international marketplace where the United States is a significant but not dominant player. That future can still be bright but it requires a different vision than one in which American dominance is taken as a given.

The challenges to USA manufacturing will continue. The best hope, as I see it, for retaining manufacturing leadership in the USA is through increasing the adoption of management improvement methods including lean manufacturing.

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Manufacturing and the Economy

In Global Market, Iowa Manufacturers Fight for Survival:

The conventional wisdom has been that expanded trade would result in the United States losing low-pay, low-skilled manufacturing jobs, said David Swenson, an economic scientist at Iowa State University. But “a lot of the jobs that we have traditionally thought of as high value, high quality, high benefits are in trouble, too.”

The conventional wisdom was that the rest of the world would not be able to compete with the United States for high wage, high value jobs. It turns out the rest of the world is much more able to compete for that work than was expected.
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Science and Engineering

Broad Federal Effort Urgently Needed to Create New, High-Quality Jobs for All Americans in the 21st Century [the broken link was removed], news release on a report from the National Academies Committee on Science, Engineering, and Public Policy – Rising Above The Gathering Storm: Energizing and Employing America for a Brighter Economic Future:

U.S. 12th-graders recently performed below the international average for 21 countries on a test of general knowledge in mathematics and science.

This is not a new discovery, but the continuing persistence of this result is none-the-less an important issue to consider.

In 2001 U.S. industry spent more on tort litigation than on research and development.

As Dr. Deming stated decades ago “Excessive legal damage awards swelled by lawyers working on contingency fees” is one of the seven deadly diseases of the American economy.
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