#316. Efficiency and Specialization Are Key for U.S. ManufacturingPosted on
Efficiency and Specialization Are Key for U.S. Manufacturing
A recent article posted by Associated Ppress should have U.S. manufacturers very excited about the future.
In the AP’s January 31, 2011, article titled, “U.S. factories remain on top in manufacturing”, several key points were made, including:
-“…America remains by far the No. 1 manufacturing country. It out-produces No. 2 China by more than 40 percent. U.S. manufacturers cranked out nearly $1.7 trillion in goods in 2009, according to the United Nations.”
– The story of American factories essentially boils down to this: They’ve managed to make more goods with fewer workers.
– The United States has lost nearly 8 million factory jobs since manufacturing employment peaked at 19.6 million in mid-1979. U.S. manufacturers have ranked near the top of world rankings in productivity gains over the past three decades.
– That higher productivity has meant a leaner manufacturing force that’s capitalized on efficiency. “You can add more capability, but it doesn’t mean you necessarily have to hire hundreds of people”, commented a specialty chemical maker spokesman.
– What’s changed is that U.S. manufacturers have abandoned products with thin profit margins, like consumer electronics, toys, and shoes. They’ve ceded that sector to China, Indonesia, and other emerging nations with low labor costs.
– Instead, American factories have seized upon complex and expensive goods requiring specialized labor: industrial lathes, computer chips, fighter jets, health care products.
We are excited by the continued positive news relating to the manufacturing sector! Stay tuned!