Can american manufacturing survive global trade


Published on

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Can american manufacturing survive global trade

  1. 1. Can American Manufacturing SurviveGlobal Trade?
  2. 2. If you live in North America, you have probably come incontact with the harsh reality that blue collarmanufacturing and industrial jobs are becoming morescarce every day. The fact is, manufacturing within theUnited States of America has been in decline for years.It has only been in the last two decades that thisdecline has become painfully obvious. The global market,that is, trade with foreign nations, is fueled by cheaplabor and economic conditions favorable to industrygrowth. Many nations competing for their place in theAmerican marketplace have modern economies that areliterally in their infancy.
  3. 3. The Chinese economy happens to be prime for growth,inexpensive manufacturing, and plenty of available labor.But the Chinese imports are really only the tip of theiceberg. American manufacturing and industrialfactories are also in competition with Japan, Indonesia,Vietnam, Mexico, Taiwan, India, etc. Visit David Pulmanfor more info. The lower costs of labor needed forindustrial manufacturing are only one factor in theequation of demise for the American labor force.
  4. 4. Environmental awareness in the United States actuallyworks against American companies in regard to overallexpense. Environmental awareness is the right thing todo, however it comes with a price. The cost of wastedisposal, operational permits, certifications, audits, andscreenings are not free. American rules and regulationsregarding environmental responsibility are morestringent than many other parts of the world. In NorthAmerica, emissions into the atmosphere are also heavilyregulated at levels unlike many other nations.
  5. 5. Liability is another aspect of doing business in theUnited States. Industrial accidents are at an all-timelow, however accident victims are compensated morehere than anywhere else. Liability insurance is at arecord high with no signs of relief. This is a directresult of a record number of lawsuits and legal actionstaken against companies. Many of the court battles arejustified, but unfortunately many are simply attemptsat working the legal system for easy money. Regardlessof the outcome in the courtroom, the costs associatedwith litigation are staggering, hence much higherinsurance rates.
  6. 6. Health insurance costs can also add to the expense ofAmerican industry. The United States has higherinsurance costs per employee than most other civilizedcountries. The reasons for this are complex, but theresult is not favorable for American manufacturing. Addin rising fuel prices, increased shipping costs, risingutility rates, and of course unaffordable propertytaxes, and we have a formula for failure.
  7. 7. American manufacturing needs to use lean manufacturingtechniques, common sense management, and strategicmarketing to grow their market share in relation tooverseas companies. The American government must also bediligent in enforcement of fair trade with countries wherelabor and economic conditions provide cheap products forthe American consumer. Only time will tell if Americanindustry can survive the global marketplace.