I apologize for the fact I have not posted in a long time. I moved to Concord, NH on the 4th and I began my new job on the 6th. Most of the past two weeks have been working and settling into my lovely apartment here in Concord.
So, for my first post in a long time, I’d like to discuss some of the major myths surrounding manufacturing in the US.
Myth: China produces more than the US.
Fact: US manufacturing output in 2009 (the most recent numbers) was $2.15T. Chinese manufacturing output in 2009 was $1.48T. That’s a 46% greater amount of output than China.
Myth: The US doesn’t make “stuff” anymore. We just make big things that cost lots, this the high values.
Fact: US manufacturing output accounted for 20% of all manufacturing in the world. In other words, 1 in 5 of all the stuff made in the world was made in the USA. This is also the largest percentage for any country. To put it in some context, the US produced more than Japan, Germany, Britain and Italy-combined.
Myth: “These jobs are going, boys, and they ain’t coming back.”
Fact: Surprisingly false. While US manufacturing employment has declined rapidly during the previous decade, a number of companies are bringing manufacturing jobs back from over seas, including Caterpillar and Wham-O (who make Frisbee) and Ford.
Most of the pessimism surrounding manufacturing comes from misleading and incomplete news reports. Employment in manufacturing has declined rapidly. However, our actual output is growing. This means manufacturing is becoming more efficient and capital-intensive. This is a good thing. It means cheaper products and more resources that were tied up in manufacturing (such as labor) can now be used elsewhere.
If you want to hear some more on which I have been talking, I’d suggest you listen to the weekly radio show conducted by my bosses Alan and Brian Beaulieu. You can find it here. It is on Monday afternoon at 4 PM.