Jobs in the US, New Manufacturing Employment Areas, Realistic Wages and Innovation
Posted: Saturday, November 14, 2009
by Steve Kovacs
The Kovacs Perspective
I am surprised I hear so little about the lack of manufacturing in the US and its effect on our economy. Sure, I hear people say what a shame it is we don't build as many cars as we used to or that we do not make steel anymore. I hear people mention we do not manufacture shirts, pants, shoes, televisions, vacuum cleaners and computers much anymore. However, not many people seem to talk about its devastating effect on the US .
I am not a union expert, but I feel they have done much good for many years. However, I also believe they have caused a mess with pushing for too much in too many areas. We are beyond the time of debating if unions are a cause in our manufacturing problems. The bottom line is we have an enormous problem that needs to be changed. One of the reasons the US is in trouble, whatever caused it, is because we build very little. The time of debate is over and the time for bold innovative action is upon us.
We purchase shirts, shoes, TV's, etc. from other countries because they are cheaper and they are cheaper because of labor costs. In many cases, their labor costs are a fraction of what ours is in the US . Many say, well, there is nothing we can do. They say we simply cannot compete with many of these countries labor rates. Some countries work rates are around two dollars an hour where here, we would have to quadruple that pay.
The fact of the matter is we have to do something. We have to start manufacturing in this country and paying a realistic, competitive, worldwide work rate. It is time for realism to be addressed and then accepted by workers. Smart business leaders are realizing that outlandish profits are not the mainstream anymore and workers and management both have to acquiesce in a win-win business model.
Still others feel it is impossible to start up vibrant manufacturing in the US again. I disagree. Here are some new manufacturing ideas in start up phases across the nation:
- A number of solar-panel factories are coming online in the United States . Let us work to be a world leader here!
- Wind turbines are apparently not the complete answer to our energy needs however; they probably will have a place in our market. Makers of these huge turbines are establishing factories in the US heartland. These factories closeness to wind farms on the Plains cuts the cost of shipping these huge machines from abroad.
- In the Midwest , Myers Motors is taking deposits on a two-seater electric vehicle they are getting ready to manufacture.
There are other examples, such as in areas of technology. I recommend if we see these or similar American innovative ideas we support them in any way we can. The United States has traditionally been an innovative country. We have been world leaders for generations in many areas. Now is unquestionably the time to be bold and innovative again! America has such a varied mix of nationalities and cultures that can bring so much to the table in this challenging time. Let us all get together, pick great leaders to guide us and move forward.
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Top-level comments on this article: (6 total)Great article. Well done.The only industry I can see the US getting good in would be high-tech industries. Developed countries have developed out of the market for heavy goods.There was a good example a few years back. A company called Young's would catch sea foods in Scotland and then fly them to Thailand to be processed and then fly them all the way back to be sold in the UK. All because labour was cheaper.Wow! That Thailand ezxample is amazing. Thanks for your comment and view--they are thought provoking.
Very good piece - we need that creativity and innovation here again - then there would be more jobs,eh?Innovation...yeah, the time is now! Thanks for writing.
Steve, thank you for this article. I like that you stressed innovation. There are probably several options to bring manufacturing back to the US. Perhaps one is educating consumers and encouraging Americans to buy American even if it costs a few dollars more. That is already happening in the organic foods market where a growing market is willing to pay more for higher quality. Second, I believe reducing business taxes is important. I have a friend who has worked in sales in manufacturing for over 25 years. In many cases, he said, a 3% reduction in costs would keep an American company from using foreign labor. Reduce taxes, lawsuits, and over-compensation on both the employee and management end, and we could bring manufacturing back to the US.Great comment and great ideas!
Innovation and creativity in business leads to manufacturing, and that leads to jobs, and that leads to a healthy economy. You have hit the nail on the head here, sir, and I have to tell you I only wish all would see it so simply. We love sales and we love cheap goods, apparently, and yet we all need to think of what that love affair is doing to our country. Well done, Steve.Thanks for the read and the comment. Quite often simplicity is probably the solution to many problems where many are looking for complicated answers. Having dealt with governmental entities a lot--they are famous for ridiculous assessing of problems and ridiculous solutions.Thanks Mike
Hi Steve, excellent article and I agree with your premise in the short term. Down the road, however, I envision a mostly agricultural society, actually a world power in agriculture, because of vast areas of land, climate, and natural resources that trend this way. Also, open borders will eventually happen, they are happening now de facto, and then there will be lots of cheap labor where we can compete with the rest of the world. Our edge will be land, climate, and agricultural technology.
Innovation, on the other hand, is something that depends in education, and Asia is better at that than we are right now. Take a look at China if you want to see some eye-popping innovation! Our only real strength down the road, I believe, will be our agriculture. Vast acres and the right climate are something that is becoming rare in the world.
Great artice! Best...............eOne good thing about SearchWarp is that you get to hear and discuss new ideas. I never heard this premise of agriculture being a possible booming area for us. Thanks for bringing that up--very interesting. Thanks for writing!Steve
Enjoyed your article, Steve. I'm glad it wasn't all "doom and gloom". We just have to be bright enough to see the opportunities in these challenging times.Yes Lynne, I agree--let's see those possibilities and opportunities.!!!! Thanks for writing.Steve
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