In a story about manufacturing in the U.S., the Planet Money of NPR put together a remarkable story about why manufacturing in the U.S. succeeds. They mention that nearly 22% of all goods are manufactured in the U.S. This fact seemed quite counterintuitive to (my) conventional wisdom about the direction of the U.S. economy and the idea that manufacturing is moving or has all moved to China. While a lot of manufacturing is leaving the U.S., there is a reason why U.S. companies can compete and keep their manufacturing in the U.S.: innovation!
The story is presented by comparing two different factories, one that is failing because it produces something that can be made elsewhere for a lot less money, and a second factory that is succeeding because they produce a product that requires a large amount of innovation. This second factory makes electronic connectors and they need to come up with a new product nearly every year to stay ahead of the curve. There are engineers who work at this factory and talk to other engineers at other companies to try to solve their technical issues.
One line about this story made me sit up and take notice: "...if your parents can understand the product you make, there is a good chance that someone in China is making it a lot cheaper." The U.S. and Canadian economy is being driven by individuals who are able to come up with the new ideas to solve engineering and technical problems and invent new products. This requires mathematical and scientific skills that distinguish U.S. students. "This idea of the one guy in the back, having ideas, and then that fueling all the profits that allow a manufacturing business to succeed. That really is the model for U.S. manufacturing to succeed. U.S. manufactures that succeed make things, sure, but they really make their money by coming up with new ideas."
No comments:
Post a Comment