Repatriating the Manufacturing Industry
People are beginning to discuss bringing back to the US some of the manufacturing operations that were previously taken off-shore. This is an exciting prospect, potentially good for our economic well-being, quality of life and national security.
A dollar invested in manufacturing produces a return to the economy of $1.40 whereas a dollar invested in the service sector produces a return of only 50 cents. As someone aptly pointed out, we can’t grow the economy by cutting one another’s hair. Producing products is a fundamental requirement for a healthy, growing economy.
Among the many items on the table at the meeting were: detractors to capital investment affected by fiscal and tax policy, over-regulation of financial markets, the cost of complying with regulatory mandates, the increasing complexity of going to market with longer and more complex supply chains, our aging and obsolete manufacturing infrastructure, lack of useful immigration policy, lack of energy policy, challenges of industrial espionage and cyber security, and general uncertainty about the overall business climate that has been created by government. Despite the scope and magnitude of these issues, the topic that far and away resulted in the most discussion was the topic of lack of a skilled workforce.
Read More: Can We Repatriate Manufacturing? By Keith Campbell
Posted by tammy on December 13, 2011. Filed under Manufacturing.
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