Rebuilding the American Foundation- Part 3

Posted: 20th December 2013 by brednane1981 in Super Tool

What lies ahead…
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In a word: hope. Or better yet: excitement. After seeing what’s going on in the U.S., with increased spending and plant capacity filling up, productivity and goods are once again on the rise. Add in the fact that China’s economic boom is beginning to cool, with labor costs going up and innovation lagging, American’s can return to not only creating new and exciting technologies, but also producing them as well. China and India are no longer just going to compete with each other for American jobs; they will have to compete with Americans as well.

China is not a country to fear economically. As the playing field begins level out, there is no reason that the U.S. and China (or India, Japan, Thailand, or Vietnam) can’t work together. We can remain economically powerful and strong competitors with each other, while still working together. There is common ground to be found that is a win-win for both sides. Globalization is a powerful and growing force and is not something that should be fought. It is the idea that those countries best suited for producing certain goods should be producing those goods, as they have the best economic value for the rest of the world (comparative advantage). It’s the barter system on a global scale. That does not mean countries cannot be competitive. It has always been the position of America to be an innovative country, something that we have often excelled at. And we should continue to be a global leader in innovation.

Indian manufacturing is stilling growing and does pose to be a hazard to the reshoring movement; however, India seems to be dragging its feet to get things together to become a manufacturing powerhouse. With a weak infrastructure it has been increasingly difficult to get foreign companies to invest in Indian manufacturing and the Indian government is having trouble improving its infrastructure without the revenue streams that come from strong manufacturing output. So it’s a vicious circle that India hasn’t yet figured out how to pull out of. This is a good opportunity for the U.S. on two points: 1. It continues the trend of reshoring jobs back to the U.S. and 2. It gives U.S. companies the advantage of creating products that India could buy to build up a better infrastructure. U.S. companies are realizing that the workers here at home are affordable and ready to work.

pre_prod_camaro_assembly_6        Examples of the resurging belief in American workers and goods can be  seen in some of the largest corporations in the country. General Motors (GM)  has just announced that it will invest $1.3 billion dollars in American plants  across the Midwest1 (something Detroit could certainly use). Walmart has  announced that they plan to buy about an additional $50 billion worth of  American goods.Whirlpool is moving some if its production to the U.S. from  Mexico, creating new jobs.3 Apple is building a new facility in Arizona to  manufacture some of its products in the U.S., creating more jobs. Middle  class America is ready to get back to work and the companies are heeding the  call.

Every great movement begins with small steps and that is what is happening right now. With American manufacturing returning home from overseas, the future ahead of us looks highly promising. As the recession ends and the American corporations begin to grease the gears, productivity will continue to rise. It is up to us to make something of this promising future. By reestablishing a foothold in the global marketplace, the American middle class can be brought back to life. This is a crucial time for the country to reset itself and fix the crack in the foundation that has thrown everyone off balance. All the tools are right there to get everything back on track and lead the country in staying on the threshold of cutting edge technology.

 

Chadd Brown
Super Tool, Inc.

 

1Forbes: http://www.forbes.com/sites/danbigman/2013/12/16/thanks-america-general-motors-announces-1-3-billion-investment-in-u-s-manufacturing/

2 Walmart: http://corporate.walmart.com/global-responsibility/us-manufacturing

Whirlpool: http://online.wsj.com/article/PR-CO-20131220-906552.html

4 Apple:  http://appleinsider.com/articles/13/11/04/apple-to-open-us-manufacturing-facility-in-mesa-arizona

 

Read Part 1
http://blog.supertoolinc.com/2013/12/11/rebuilding-the-american-foundation-part-1/

Read Part 2
http://blog.supertoolinc.com/2013/12/13/rebuilding-the-american-foundation-part-2/

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