|
December 12, 2007
The Manufacturing Decline
Control Engineering asks the provocative question: is manufacturing in decline in the USA? Boston, MA - The keynote address at Aberdeen's first annual Manufacturing in the 21st Century Executive Summit served as a stronger wake-up call for attendees than the free coffee. During this session, best-selling author Michael Treacy highlighted the dramatic evolution of workplaces during the past several decades and asked the provocative question "does manufacturing even matter anymore?"Well does it? The magazine has some answers. Subsequent presenters, however, demonstrated that manufacturing in North America is not only relevant, but thriving.As per usual the answer is to work smarter and harder. Control Engineering agrees. However, as the name implies, continuous improvement is a journey, not a destination. Even the most robust data is of little value unless that data is used to consistently measure the performance of the business. This point was reinforced by continuous improvement experts and co-presenters Richard Kunst, VP of continuous improvement for La-Z-Boy and Mariela Castano-Kunst, continuous improvement manager for Nestle Waters Canada.So the real question is as always: do American's still have the competitive spirit that G. S. Patton described so well. When you, here, everyone of you, were kids, you all admired the champion marble player, the fastest runner, the toughest boxer, the big league ball players, and the All-American football players. Americans love a winner. Americans will not tolerate a loser. Americans despise cowards. Americans play to win all of the time. I wouldn't give a hoot in hell for a man who lost and laughed. That's why Americans have never lost nor will ever lose a war; for the very idea of losing is hateful to an American."Interestingly enough manufacturing represents about the same percentage of the economy as it has for the last 50 years. So output is actually increasing to match the growth of the economy. So why all the talk of decline? In a word. Jobs. We are making more stuff than ever with fewer people. Just as the mechanical revolution eliminated farming as a mass employer, automation is in the process of eliminating manufacturing as a mass employer. So the question is - what next? As usual there is no obvious answer. It is up to you to determine where the economy will go. Your best bet? Join the enthusiastic 20%. Figure out how you can be of service and just do it. Cross Posted at Power and Control posted by Simon on 12.12.07 at 06:23 PM
Comments
I almost went ballistic reading your post. But to counter the arguments you posted emotion is beside the point. Or take another manufacuting sector that has been totally decimated: the American shoe industry. I believe that SAS is the only one left at this point. I don't pretend to know all the reasons for this manufacturing decline, but I have read Atlas Shrugged. And the descriptions in that novel of manufacturing decay is what I see, here in the real world of business. Frank · December 13, 2007 02:09 AM So, some sectors of manufacturing are in decline? So what.? Rockford Illinois used to be a center of furniture mfg. All gone. Long ago. What replaced it? Aerospace. Which brought me here. As to competing with 10 cent an hour labor? No problem. Our farmers manage. It looks like La-Z-Boy is attacking its mfg. problems. Who know if they will succeed? If they fail it will because they did not improve enough when times were good. The economy goes through boom and busts regularly. If such a cycle is destroying the furniture industry it is due to mismanagement not Greenspan. As to shoes? We should buy from the lowest cost suppliers. Then we have more to spend on other things. Like iPods. As I said. Manufacturing labor is in decline. Manufacturing is not. So the question is - do we want to compete or not? You sound like one of the negative 20%. As the article points out, those are not the people that should be leading. "We can't..." is the first step on the road to failure. My motto for a long time has been "I will find a way or make one". Our chief problems are those Edison pointed out: "Any extension of the Government into business affairs -- no matter what the pretense and no matter how the extension is labeled -- will be bound to promote waste and put a curb on our prosperity and progress." --Thomas Alva Edison It is astonishing what an effort it seems to be for many people to put their brains definitely and systematically to work. - Thomas A. Edison Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time. - Thomas A. Edison M. Simon · December 13, 2007 02:45 AM BTW we don't make many memory chips in America any more. Yet our semiconductor industry is thriving. How can that be? Well, we got out of commodity products and moved into a better value added proposition. Like gate arrays. Very good business. M. Simon · December 13, 2007 02:47 AM Who said anything about giving up? Not I. Frank · December 13, 2007 09:59 AM Frank, Marxist socialist economics is zero sum. Real economics doesn't work that way. I don't know if you remember when "Made in Japan" meant junk. We are getting similar stuff from China these days. In time the income from "slave labor wages" will continue to lift China out of poverty. Just as it did for Japan. Capitalism is lifting the world. Something socialism never accomplished. If you want to know why socialism has such a dismal record may I suggest Hayek, "The Road To Serfdom". BTW what happens to those amassed "obscene profits"? They get invested in more productive capacity. As Marx pointed out - if you need to amass capital, capitalism is the way to go. And capitalist will do it for you. Profit is what allows you to take risks. No profit, no risk, no economic advancement. M. Simon · December 13, 2007 06:21 PM Frank, Manufacturing makes up 20% of the economy. Just as it did in 1950. Where is the decline? It is in the labor required for manufacturing. So tell me. Given the fact that farming once employed 70% of the population and now employs 1% - 2%, is farming in decline? M. Simon · December 13, 2007 06:24 PM First off, I don't buy the 20% even manufacturing figure. Does assembly now count as manufacturing? You bet it does. What I know would only count by you as anecdotal evidence. It's not in some journal of manufacturing bullshit. But this is it: My nephew worked for a company in the SF Bay Area that made the highly sophisticated machinery to make door locks, the kind bought by Slage and others. He was sent all over the world installing that equipment - Belgium, Australia, Japan, Malaysia. Please don't BS us with feel good make-believe statistics. Frank · December 18, 2007 01:19 AM Frank, Of course paper mills are closing. We are substituting electrons for paper. So if company A assembles stuff bought in America does it count as manufacturing? If company B assembles stuff bought outside America does it cease to count as manufacturing? The Auto companies have been assemblers for 50 or more years. Do they manufacture cars? BTW I see you do not get the creative destruction of capitalism. I'm surprised you don't mourn the decline of makers of horse drawn conveyances and ancillary eqpt. Say buggy whips. Some where along the way HP screwed up. Maybe getting into PCs instead of focusing on instruments was a bad move. America has always been marginal when it comes to old technologies. We do much better at doing things no one else has thought of. M. Simon · December 18, 2007 09:06 PM Yes, I get the the creative destruction nature of capitalism, and don't regret the demise of candle stick makers. (Oh yes, I've long ago read Bastiat) Those techies who've made fortunes with digital media are all fine and good. But they don't put shoes on our feet, clothes on our backs, or food in our guts. That's left to us lesser beings who actually work for a living by making a vital product. And further, why is it so important to you to prove the point that manufacturing is NOT in decline, when even Greenspan says that the industrial age is past, and we have entered the information age?
Frank · December 21, 2007 01:55 AM Frank, You might also want to read David Riccardo on comparative advantage. We get out of the low profit stuff and focus on the high profit stuff. Semiconductors vs shoes. Software vs steel mills. That is not a sign of decline. If imported paper costs less and the return on capital for a new more efficient paper plant is low we should get out of paper making. In fact I think in a round about way you made that very point in your comment. I read 40 or 50 trade magazines every month. Everything from Modern Metals to Solid State Technology and plenty in between. I see a lot of vigor. M. Simon · December 21, 2007 02:51 AM Let me add that the agricultural age is passed. Is it passed because we are making less food? Or because the labor content is now very low? Same for mfg. M. Simon · December 21, 2007 02:53 AM If I thought that information technology and digital media, robotics, bio-technology, etc. were simply supplanting the aging industrial manufacturing sector, I wouldn't give it a second thought. Comparative advantage my ass.
Frank · December 22, 2007 02:31 AM Post a comment
You may use basic HTML for formatting.
|
|
January 2008
WORLD-WIDE CALENDAR
Search the Site
E-mail
Classics To Go
Archives
January 2008
December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 March 2005 February 2005 January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 July 2004 June 2004 May 2004 April 2004 March 2004 February 2004 January 2004 December 2003 November 2003 October 2003 September 2003 August 2003 July 2003 June 2003 May 2003 May 2002 AB 1634 MBAPBSALLAMERICANGOP See more archives here Old (Blogspot) archives
Recent Entries
Is Huckabee simply the anti-Romney?
Callipyginous Ephebiphobia on the campaign trail? Policy Of Blockade HAPPY NEW YEAR! slanted or planted? Stifling diversity in the name of diversity? Insensitivity in the name of sensitivity? Fred's Message To Iowans A Marine Needs Help Recreating a past we only imagine
Links
Site Credits
|
|
I work with several manufacturing companies, and most are doing record business.
Manufacturing jobs have declined, but we build the most efficient factories.