Is there anything left for America to manufacture?

[one...two...tree 2,762]

By Terry Tamminen, Grist

Growing up in the 1950s, "Made in Japan" was synonymous with "cheap junk." Responding to the needs of a world that hungered for more labor-saving devices, Japanese manufacturers shifted to higher-value products and quality improved. Today, "Land of the Rising Sun" companies like Honda boast the hydrogen-powered Clarity automobile and Toto makes high-tech toilets that do everything from chemically analyze your urine to heat water that massages your backside.

In those same decades, American manufacturing has gone from the global leader in innovation and quality to a laggard in producing almost anything. Just as Japan reinvented its manufacturing base ahead of massive global economic and technological demand, can "Made in America" once again mean something special—this time ahead of the needs of both the economy and the environment?

Many economists argue that manufacturing—and the jobs it creates—is crucial to long-term economic stability. Such reasoning makes sense, because a factory takes time to build and often requires infrastructure investments, like roads, ports, and rail lines, which are also permanent. The beneficial ripple effect includes property taxes pumped into local economies, workers who buy new homes, and utilities that scale up to power the machinery, further enhancing long-term, stable economic growth.

But is there anything left for America to manufacture, given that we have clearly lost our manufacturing mojo to places like Japan for innovation (compare Toyota's Prius to GM's Hummer) and China for cost (what product in Walmart is not made in China?)? The answer is yes—if we focus on products for the growing low-carbon economy.

For example, the Lyman-Morse boatyard in Thomaston, Maine has a multi-generational reputation for excellence in boat building, but has seen orders drop during the current recession. They turned their skills to manufacturing ZeroBase, a solar-powered generator that replaces the need for diesel fuel to get 24/7 energy at homes, factories, or remote locations. Controlled via the Internet and built to withstand the same rigors that would normally assault a New England lobster boat, the ZeroBase solar generator is now in use by the military at forward bases in Afghanistan (where refueling traditional generators costs a breathtaking $800 per gallon and risks lives, according to senior Air Force official, and is about to be shipped to Haiti to power field hospitals. Lyman-Morse kept over 100 highly-skilled workers in manufacturing jobs in the process.

In California this month, Cobalt Biofuels cut the ribbon on a factory to make transportation fuels from all kinds of plant materials, including stalks and other biological waste materials. When completed, the factory will employ 1,300 workers and be among the world leaders in producing efficient alternatives to oil. Governor Arnold Schwarzenegger credits his manufacturing equipment tax credit for landing the factory in California and according to a study by the University of California (Berkeley), California's incentives and low-carbon energy policies will create over 400,000 jobs in the next decade and increase household income by $48 billion—most of that in some type of green tech manufacturing.

The lesson is that the U.S. can revitalize its essential manufacturing sector by focusing on products that deliver the low carbon economy that consumers around the world now hunger for—new ways to use common solar panels, such as ZeroBase; sustainable alternatives to oil, such as Cobalt; and things like energy efficient controls or lighting, to name a few. In essence, make better versions for the future of the products that other countries are making in business-as-usual ways today.

I don't know what someone in Japan thinks now when they see a product with the label "Made in America," but I do know what color they would be if we focus on low carbon product manufacturing—green—as in a greener environment, more greenbacks for the U.S. economy, and just plain green with envy.

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[Ban Hammer 14,668]

Is there anything left for America to manufacture?

sure, lotsa people with an inflated sense of entitlement.

[SMR 368]

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This seems like a great idea as long as we are talking about jobs that are actually viable and stable in the free market and not jobs that rely on government subsidy. If the jobs rely on subsidies, they can't be the basis of a stable economy, because there have to be other jobs and manufacturing that is actually providing the tax revenue to provide the subsidies.

But like I have been saying for a long time, green jobs and manufacturing will eventually be cost effective and then investors will provide the capital without the government. This article makes me think that this time may not be that far off.

[one...two...tree 2,762]

This seems like a great idea as long as we are talking about jobs that are actually viable and stable in the free market and not jobs that rely on government subsidy. If the jobs rely on subsidies, they can't be the basis of a stable economy, because there have to be other jobs and manufacturing that is actually providing the tax revenue to provide the subsidies.

But like I have been saying for a long time, green jobs and manufacturing will eventually be cost effective and then investors will provide the capital without the government. This article makes me think that this time may not be that far off.

You do realize that the fossil fuel industry along with nuclear energy have long benefited from federal subsidies? If you were aware of that fact, why take a stand against doing the same for emerging renewable energies?

[w¡n9Nµ7 §£@¥€r 123]

We can manufacture anything we once did, as long as the conditions allowing us to do so are recreated.

[natty bumppo 297]

Is there anything left for America to manufacture?

sure, lotsa people with an inflated sense of entitlement.

more excuses ...

[Nagishkaw 510]

...more questions....more corners...

[mawilson 2,133]

Responding to the needs of a world that hungered for more labor-saving devices, Japanese manufacturers shifted to higher-value products and quality improved. Today, "Land of the Rising Sun" companies like Honda boast the hydrogen-powered Clarity automobile and Toto makes high-tech toilets that do everything from chemically analyze your urine to heat water that massages your backside.

In those same decades, American manufacturing has gone from the global leader in innovation and quality to a laggard in producing almost anything. Just as Japan reinvented its manufacturing base ahead of massive global economic and technological demand, can "Made in America" once again mean something special—this time ahead of the needs of both the economy and the environment?

Well, Japan has its share of problems.

Here's a very interesting FT article on the subject.

"In a country where monozukuri, or making things, is part of the national identity,

hand-wringing about the state of manufacturing is not new. Light-speed industrialisation

shielded Japan from western imperialism in the 19th century and rebuilt it after the second

world war – a war that was itself a demonstration of the importance of material production.

...

Well-paid blue-collar jobs ... have been a pillar of Japan’s postwar social equality.

...

Companies have been quietly shifting production overseas for three decades, to overcome

trade barriers or take advantage of cheaper foreign labour. Employing one in 10 workers,

manufacturing’s share of gross domestic product, at 21 per cent as of 2006, remains high

by developed-country standards – but is well below its peak of 36 per cent in 1970. The

assumption was that high-skilled work would stay in Japan and ever-growing global sales

would ensure a minimum level of exports.

That view is now being questioned. As the recession deepened early this year, factories

started to close and workers were dismissed – in many cases with no promise of rehiring

when the economy recovered. Sony said it would shut four of its 10 domestic electronics

plants and outsource their production. Mikio Katayama, the president of Sharp, announced

a strategy shift, saying that in future “exports from Japan will not make sense even in the

most advanced technological fields”. For a company that defines itself by its manufacturing

prowess, the comment suggests more than a cyclical malaise.

...

More here.

[one...two...tree 2,762]

Well, Japan has its share of problems.

Here's a very interesting FT article on the subject.

"In a country where monozukuri, or making things, is part of the national identity,

hand-wringing about the state of manufacturing is not new. Light-speed industrialisation

shielded Japan from western imperialism in the 19th century and rebuilt it after the second

world war – a war that was itself a demonstration of the importance of material production.

...

Well-paid blue-collar jobs ... have been a pillar of Japan's postwar social equality.

...

Companies have been quietly shifting production overseas for three decades, to overcome

trade barriers or take advantage of cheaper foreign labour. Employing one in 10 workers,

manufacturing's share of gross domestic product, at 21 per cent as of 2006, remains high

by developed-country standards – but is well below its peak of 36 per cent in 1970. The

assumption was that high-skilled work would stay in Japan and ever-growing global sales

would ensure a minimum level of exports.

That view is now being questioned. As the recession deepened early this year, factories

started to close and workers were dismissed – in many cases with no promise of rehiring

when the economy recovered. Sony said it would shut four of its 10 domestic electronics

plants and outsource their production. Mikio Katayama, the president of Sharp, announced

a strategy shift, saying that in future "exports from Japan will not make sense even in the

most advanced technological fields". For a company that defines itself by its manufacturing

prowess, the comment suggests more than a cyclical malaise.

...

More here.

It's hard to be a drug free championship team when all the opposing teams are juicing now.

[NickD 203]

We have more electronic products today than ever, we had full robotic manufacturing, just a couple of trained techs to keep the production lines going. Using CAD for design, electronics has changed over from the very expensive hand wired chassis to more like a printing press operation.

Yes, chemicals have to be used and processed before being dumped, an extra expense, but what about that long boat ride and production delays when dealing with China. Over there, they can dump into the streets and do, but that is going to change, they are killing their own people. USA always has been known for it's huge consumer based market. We use to make our own stuff, and still can. But what is driving us out, is our own government with a zillion agencies to deal with. No more dirty words, no smoking, safety, safety first, extremely strict pollution laws, an extremely unreasonable IRS that wants to value inventory at retail prices skyrocketing the tax rates. Inventory is profit that hasn't even been made yet. Who or who you cannot hire, zero understanding that a company needs a profit to stay in business, all kinds of red tape to deal with, countless reports. Extremely high product liability insurance rates, and it doesn't make a damn what you make, someone will sue you and it's money and time out of your pocket even though your product didn't have a damn thing to do with a supposed accident. They call you in as long as you have insurance or cash. And you have to pay out of pocket whether you were guilty or not to defend yourself.

Almost impossible to sue a foreign based company, if you don't believe this, try it.

Yet another change are those mom and pop stores that have all but vanished, have to deal with the chains, and regardless of whether it's a better quality product Made in the USA, if the unit price is just a quarter of a cent greater, you will not get the order. We have unfair global competition to deal with.

But it never occurred to the idiots that run this country that by exporting all these jobs, our people can no longer afford to buy this ####### and we were actually paying the Japanese to import their ####### instead of a positive tariff. As a matter of fact, our government was giving them a dime back for every buck they shipped into this country. Don't ask me why, we still have stiff tariffs with our close allies in Europe.

Then we are the self appointed policemen of the world that is also costing us a small fortune. If you thought about setting up a manufacturing company here today, you are positively insane. Unless we get a totally new government. One that helps instead of one that fines.

[mawilson 2,133]

It's hard to be a drug free championship team when all the opposing teams are juicing now.

What do you mean by juicing? The shift of manufacturing jobs offshore?

Keeping manufacturing at home is a blessing and a curse. The focus on manufacturing

in Japan (which accounts for 21 percent of economic output compared with 13 percent

in the US) makes Japan more sensitive to fluctuations in the global economy than other

countries.

Also, manufacturers need a weak yen to export profitably. Yet Japan's growing army

of retirees need a strong yen to import more foreign goods, services and labor with

their investment income.

[NickD 203]

What do you mean by juicing? The shift of manufacturing jobs offshore?

Keeping manufacturing at home is a blessing and a curse. The focus on manufacturing

in Japan (which accounts for 21 percent of economic output compared with 13 percent

in the US) makes Japan more sensitive to fluctuations in the global economy than other

countries.

Also, manufacturers need a weak yen to export profitably. Yet Japan's growing army

of retirees need a strong yen to import more foreign goods, services and labor with

their investment income.

I prefer to watch the Military Channel where we were blasting the hell out of them. Youngest son is in Japan, working for a software game company, has a degree in Computer Science, and English minor, and speaks fluent Japanese. But he will always remain at the bottom of the totem pole, because he is white. He likes Japan and I don't have the slightest idea as to why, but they do need people very fluent in English for the US market.

[w¡n9Nµ7 §£@¥€r 123]

Youngest son is in Japan, working for a software game company, has a degree in Computer Science, and English minor, and speaks fluent Japanese. But he will always remain at the bottom of the totem pole, because he is white.

Sounds familiar.

[one...two...tree 2,762]

What do you mean by juicing? The shift of manufacturing jobs offshore?

Keeping manufacturing at home is a blessing and a curse. The focus on manufacturing

in Japan (which accounts for 21 percent of economic output compared with 13 percent

in the US) makes Japan more sensitive to fluctuations in the global economy than other

countries.

Also, manufacturers need a weak yen to export profitably. Yet Japan's growing army

of retirees need a strong yen to import more foreign goods, services and labor with

their investment income.

Not necessarily offshore, but relying on Third World Labor.

[spookyturtle 9,466]

The US can still manufacture cars, heavy equipment, pharmaceuticals, chemicals, etc. We could also branch off into many other areas but it would not be cost effective due to the higher labor costs. We certainly are capable of more, but the bottom line of dollars and cents won't allow it.