How much time does the U.S. have?

[Adrienne Selko]

Re: China's High-Tech Export Threatens U.S. Competitiveness (http://www.industryweek.com/ReadArticle.aspx?ArticleID=12533)


It's about time someone started to honestly consider the affects of China on American manufacturing.

China has added high end products to the mix of products they are flooding America with. Has anyone taken the time to try and figure out how much time America actually has???

R. Juras
Bolingbrook, IL

[Adrienne Selko]

Note: A reader wrote us with this reply.


I disagree that the export platform issue is greatly exaggerated. Whovever has this thought ought to talk to MIC in Taiwan and Ken Kraemer at CRITO in California.

Tim

[Abogle]

First it was cheep trinkets, then household goods, then consumer electronics, now it Hi-tech - nothing is safe from the China onslought.

Most people on the street recognise this is a huge national economic security issue, yet the politicians go merilly down the globalization and free trade at all costs path.
Has anyone taken the time to try and figure out how much time America actually has???


In my analysis the manufacturing base in this country has shrunk by as much as a third over the last 5 years. At first a few closures here and there were barely noticed, now we have reached the tipping point and it may actually be too late to rescue US manufactuing in any meaningful way.

I have heard it said that nearly all manufactuing will be gone in the US by 2020 at the current pace, with the exception of time critical, those governed by regulation, fabricated products too large to economically ship, and perishable products.

[Teri]

Ok [Abogle]-- you've summarized the problem, as you see it --- what's the solution? If you were to set an agenda for our national leaders, what five concrete steps would you like to see taken that would significantly change the outcome you have predicted?

Is it ALL at the hands of the politicians (and therefore, by default, the voters -- who, afterall, vote these folks in)? Or, does manufacturing management and labor get a "to do" list too?

What should we agree the end goal be that we are measuring -- increased productivity and profitable production in the United States....or increased employment in the United States? Because one thing I've noticed is that the "to do" list for Wall Street and Main Street doesn't necessarily agree.

[Abogle]

Teri - I have indeed offered up many possible solutions in other threads, but to summmarize them:

Repeal, scrap or revise all exisiting trade agreements, increase enforcement of existing law, stronger intellectual property rights, and fairness provisions that include minimum wage and safe working conditions, also requiring those countries wishing to do business here must also open their markets to US goods and services - it has to be a two way street.

Install some common sense into the regulatory burdens that balances the need for safety and the environment with sound economics, not political ideaology.

Stricter enforcement of anti- dumping laws and tariff protection for strategic industries

Tax incentives that encoruage keeping and creating jobs at home, not ship them overseas with the current loophole that encourages companies to offshore with deferred taxation.

Relieving US based companies of the exploding health care cost burdens - we must get a handle on health care in this country, and US companies are at a competitive disadvantage against companies in countries that have nationalised health care.

Making education affordable so that we can make sure we have adequately trained students for the higher tech jobs of the future - we should not cede this advantage to India and China.

I agree that Wall street and mainstreet are at odds. Since the US worker in genral is the most productive worker in the world, you would think companies would be clamoring to take advantage of this value. so employment and productivity can go hand in hand - the problem is the short term profit maximization attitude of wall street. There is enough blame to go around, from bad and ill advised government policy, too short sightedness and poor management, and just plain greed.

[OhioMfg]

As a new member of the IW forums, I am reading with great interest the discussion of China and how can the U.S. compete. I believe as it has been mentioned by many posters that the U.S. manufacturing sector is in trouble. I do not believe that it is all because of China. Take a look at the litigation fueled, I want it now attitudes of our youth, stockholders, management, and workers. I have been on all sides of the ball, employee, manager, consultant, executive management staff, and public sector and I have seen this attitude expressed in every situation.

Sure, we can blame politicians for allowing this to happen, and for letting China become a global force. But can we blame the pols for this when we all know that if these controls are put into place and the cost of a DVD player goes from $49.99 to $99.99 the U.S. population will have the politicians head on a platter. The U.S. needs to spend as much assisting U.S. manufacturers export as we do establishing free trade agreements. Or maybe we need to look at how much it costs a bright, hard working american to actually start a manufacturing company.

Let's educate our youth, provide opportunities that make it easier to innovate, tighten some of the import controls, and get our plants making a product again.

[Abogle]

Very good points Ohiomfg.

Education is a key portion of saving US mfg.

And I agree that there is enough blame for the problem to go around.

I may be in a minority, but I doubt it, that is willing to pay a few more bucks for quality US made products rather than China made stuff.

What I have found that most are unaware of country of origin of many products and haven't been paying much attention to the serious issue of job offshoring, and when pointing these things out, there are very few who prefer to sacrifice our economy and national security simply to save a couple bucks on our store reciepts.

[OhioMfg]

Abogle,

I completely agree with you. I don't have a problem paying a few more bucks for quality domestic made products. Unfortunately, as you said we are in the minority. I find it interesting that the much maligned domestic automotive industry has vehicles that are primarily made in Mexico, Canada, Australia, etc...., when you have Honda's and Toyota's that are made in the U.S.

I assist Ohio companies find exporting opportunities and know that there are good quality U.S. companies that are willing to try and change the trade imbalance, we do need a set of politicians that have a set though. keep up the good work.

[Abogle]

Honda and Toyota are OK in my book, as long as they continue to produce quality cars and create good jobs in the US. Look at all the Ohio companies that support Honda:) What direction is Ford and GM going in Ohio?

Keep up the good work helping US companies find export opportunities - its a really tough job when the deck is stacked against you:(

Interesting story I have when I needed to buy a hand tool for a home improvement project recently, went to the big box Home Improvement store - picked up the first tool - it was made in china, picked up the second one and it was US made. There was little outward difference in the products, but very surprisingly the US made one was 2 dollars cheaper than the chinese one - no brainer which one I bought.

[OhioMfg]

Good Choice! :D

Whatever happens in the future, I can rest easy knowing that I am doing my part to save manufacturing in our country. Let's just hope that the rest of the people wake up before it's too late.

[Bill]

Just got hooked into this site and discussion....

Todays WSJ had an excellent article entitled "China's new hurdles to investors" which clearly shows what a government can and should do when it comes to taking care of their own businesses and people. Question for our politicians, "Why are you unable or unwilling to do the same for us here in the U.S?"

I also ran across a great article awhile back regarding strategies on manufacturing, and the title says it all:
One Japanese View: "Never Outsource"
You can find the full article at the website below, about half way down the page.
http://www.reed-electronics.com/moversandshakers/article/CA6344024.html

We as a nation and people have to look beyond the ability to purchase "cheap trinkets" from "big box outlets" and decide how our nation will exist in the coming years and decades......as a land of boundless opportunities for all who live here, or a land where only the few prosper beyond ones wildest imagination, while the masses struggle to eke out the barest of existences.

[Jaybird]

I always find it confusing how people keep talking about outsourcing and problems with trade issues and protecting U.S. interests. Perhaps it's just me (probably is), but I think it is more than clear that the world is in th process of losing it's borders.

It's not something you can ever stop -- perhaps by buying "American-made" only, or by enforcing anti-dumping regulations, or other artificial measures, you can stall the "slide". But it is inevitable that the borders will eventually be lost.

The transition period is painful for many, but that's the hand that's been dealt for our time. Life is tough, and isn't fair. I'd rather focus on how to best position myself for the inevitable changes than try and cling onto a pipe dream. Just my 2 cents.

[Abogle]

I don't understand the "lets give up and give in" attitude of the globalization apologists and proponents.

Just because its happening doesn't make it good or right. Why should the working and middle class of this country sit idly by and help to finance the rise of other countries (and potentially hostile ones at that) at the same time as weakening our own economic and national security?

Anything that can slow down and potentially turn around this bizarre race to the bottom is a good thing and I'll keep fighting for it rather than give in:mad:

[sbalombini]

Just finished reading a book on how the "Middle East" got the way it is today. Remember at one time the "Middle East" based on Islam was the cultural/scientific/commercial center of the known world (Europe was in the Dark Ages)! They made a conscious decision to ignore the rest of the world because the feeling was there was no benefit in dealing with them. Needless to say, the "Middle East" has ended up trailing not only the "infidels of the West"; but also their brethren in the Far East! Oil is all they can offer to the world now. The lesson is that the dynamics of people/governments/cultures all evolves over time and if we don't evolve as well, hello backwater country status. It certainly isn't painless and our government could do much more to help the transition; but it's going to happen...lead, follow or get on your camel and ride off into the desert!

[Abogle]

Pushing for fair trade and a more level playing field and protection for vital industries is far different than shutting ourselves off from the rest of the world.

The globalists continue to try to paint this is as a black and white "fur us or agin us" argument that you can not help and support domestic industry at the same time as protecting it. This is patently false.

Leveling the playing field in trade and protecting our own interests at home is vitally important to our long term economic health and national security.'

It does not mutually exclude trade with others - thats ok as long as it fair trade.

The record and growing trade deficits shoulod be a wake up call that we will soon no longer have any products or services left that other countries will want to buy.

Expanding US companies to sell into opther countries = good. Shipping US jobs overseas to dodge taxes, environment and safety regulations and exploit cheaper labor = bad