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The Decline of Manufacturing in USA
There are so many reasons why manufacturing has declined so much but money is at the root of all of them.
I think we all realize that increased efficiency and automated production were responsible for the first big job eliminations in the 70's and 80's. Weeding out the bloated parts of industries during those times was inevitable. And as digitally controlled machines got better things only accelerated. But then things get murky. Rising health care costs hurt. The rise of offshore manufacturing subsidized by currency manipulation or lack of environmental and workplace regulation is huge of course. Just the inevitable consolidation of an industry brings workloads up and wages down. I have an example of a certain managerial mindset that has crept in. I know a guy who works for a large local company that makes scissors. He's an engineer and has been involved in designing molds and dies. In the nineties management there decided to start having these complicated and expensive tools made in China because it cost much less. After that, for years production struggled because the molds would be wrong and have to be sent back or re worked here. Or the molds would have a very short life because heat treatment was poor. Now after 15 years, for a variety of reasons the tools coming from China are better but when you look at the overall picture, the cost savings haven't been dramatic. In the meantime good paying careers have disappeared and an important knowledge base has been diminished. There used to be a time when having a large R&D department was a source of pride for many companies. Now it's a liability. Quote:
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