Good News For U.S. Economy (Unless You Work In A Factory)

Jan. 23, 2007
Can something be good news for the U.S. economy as a whole, but bad news for factory workers? Yes, according to the Wall Street Journal. In a Jan. 22, 2007, article by Mark Whitehouse titled, “For Some Manufacturers, There Are Benefits to Keeping ...

Can something be good news for the U.S. economy as a whole, but bad news for factory workers? Yes, according to the Wall Street Journal. In a Jan. 22, 2007, article by Mark Whitehouse titled, “For Some Manufacturers, There Are Benefits to Keeping Production at Home” (sorry, you have to be a subscriber to read it, so I can’t post a link to it), the WSJ takes a close look at data from the Federal Reserve indicating that, contrary to public perception, there are several manufacturing niches where making the products in the U.S.A. is the most economical route.

The catch (there’s always a catch) is that the success these niches are enjoying isn’t really duplicatable. The niches include very large—and expensive—consumer items, such as top-of-the-line televisions and refrigerators.

The WSJ reporter quotes Columbia University’s Bruce Greenwald, who says, “If the thing being sold to the U.S. market is locally customized, delicate, or very large, chances are it’ll continue to be produced in the U.S.” Greenwald adds this market reality also holds true for manufacturing processes that require almost no labor, such as chemicals, high-tech components and metal fabricating. “Manufacturing in the U.S. is headed toward plants that have no people in them,” Greenwald says.

So again, we hear echoes of the more production/fewer laborers equation. The WSJ uses this example: if output per hour rises by 3% annually, then the average inflation-adjusted wage will more than triple over 40 years. If you have a job, then, your income will tend to rise accordingly; I guess the lesson there is, just make sure your job isn’t a factory worker.

Popular Sponsored Recommendations

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Goodridge Boosts Productivity & Saves Costs by Moving to the Cloud!

Dec. 4, 2023
With Infor's cloud solutions, Goodridge has been able to greatly increase overall productivity, cost savings, data visibility, and automation. This case study discusses the many...

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!