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  • From: Gene GeRue <genegerue AT ruralize.com>
  • To: homestead AT lists.ibiblio.org
  • Subject: [Homestead] American manufacturing
  • Date: Sat, 19 Apr 2008 17:35:45 -0500


On Apr 19, 2008, at 12:32 PM, Clansgian AT wmconnect.com wrote:

I've heard that before, Gene. When the hand is called, it turns out that all
and sundry things are called manufacturing. That's why morrgages, insurance
policies, warranties, and the like are now called 'products'. Change the
definition to tangible goods, and you see that we make nearly nothing in this
country.

Here in this sleepy burg of 40,000 people,

Are you referring to Bristol, TN/VA? Could it be that business owners found other places in America where they could get a better deal from the local and state government? Any other factors?

I'm Googling for stats and finding this:

The Face Of American Manufacturing

The United States is the world's most productive country, but the global landscape has changed dramatically in recent years and even more changes are on the way.

By David Blanchard
June 1, 2007 -- It should surprise nobody to learn that the number of U.S. workers employed in manufacturing has been on the decline over the past decade, with annual employment dropping from 17 million in 1997 to just over 14 million in 2006. Those are the hard, fast numbers that the U.S. Department of Labor's Bureau of Labor Statistics (BLS) compiles, and for some industry observers, those are the only numbers that are relevant to a discussion of the future of manufacturing in the United States.

http://www.industryweek.com/ReadArticle.aspx?ArticleID=14159

The Media’s Top 10 Economic Myths of 2006

See Executive Summary

10. American manufacturing is obsolete
Media myth: All the manufacturing jobs have been shipped overseas, and the only ones left are in the almost empty plants of the Big Three automakers.

Truth: American auto manufacturing is alive and well, with Honda and Toyota opening new plants in the United States. The Associated Press explained on May 28 that Honda’s new 1,500-job plant slated for the Midwest is just one part of a “$1.18 billion global expansion,” and should boost North American “production capacity from 1.4 million to 1.6 million vehicles a year.”

http://www.businessandmedia.org/specialreports/2006/topmediamyths/mediamyths.asp



WHY FREE TRADE AGREEMENTS WORK
FOR AMERICA’S MANUFACTURERS

The NAM doesn’t want U.S. manufacturers to pay high import duties when exporting
their products. We want them to sell to other markets duty-free. We want zero tariffs –
the elimination of foreign import duties on U.S. products.

And that’s what we get when the United States negotiates Free Trade Agreements
(FTAs) with other countries. Once the FTA is fully implemented our free trade partner
eliminates its import duties on American-made manufactured goods.

http://nam.org/s_nam/bin.asp?CID=5&DID=238230&DOC=FILE.PDF


03.25.2008 China Cheats, Pennsylvania Workers Lose
15,640 Pennsylvania jobs lost per year as a result of China’s illegal trade practices
WASHINGTON, DC, March 25, 2008—A new analysis by the Alliance for American Manufacturing (AAM) found that the U.S. trade deficit with China has taken a surprising toll on Pennsylvania workers. Annual job losses in Pennsylvania due to Read More » »
01.30.2008 Jobs Matter in the Super Tuesday States: 1.5 million manufacturing jobs lost in past seven years
Washington, DC. January 28, 2008. A new analysis by the Alliance for American Manufacturing (AAM) on the 24 states holding caucuses or primaries on February 5th found that:
-The 24 states have lost approximately 1,568,600 manufacturing jobs in the past seven years. (Source: Bureau of Labor Statistics)
-These 24 states have lost Read More » »
http://www.americanmanufacturing.org/newscenter/pressreleases

1 April 2007

Lies and statistics: Raw job numbers steady; productivity soars

By Michael Bond

The decline of manufacturing in the U.S. is indisputable ... sort of.

Indeed, some statistics bear this assertion out. Manufacturing as a percentage of the U.S. economy-the largest economy in the world-has gone from over 25% in 1950 to around 12% today.

These numbers, however, are quite misleading because they do not adjust for the relative price of manufactured goods.

The price of manufactured goods in this period went down over 50%, relative to non-manufactured output. When manufacturing translates in real terms, its share of gross domestic product (GDP) has remained about the same as in 1950.

Real manufacturing output has kept pace with the general economy since 1950. It has shown no long-term decrease.

While it is true the U.S. has lost manufacturing jobs since 1980, the number of employees in manufacturing is around the same now as in 1950.

Even the decline in manufacturing employment since 1980 is partially suspect given many jobs originally done in house have been outsourced domestically. One can think of accounting, legal, secretarial, and other white-collar type employment.

Assuming the current figure of 14 million jobs is correct, manufacturing has declined from around 30% of total employment in 1950 to around 10% now.

Since real manufacturing output has not changed since 1950, it must be around five times larger today since the real economy is that much bigger. Therefore, what we have is the same number of manufacturing employees producing around five times as much per worker.



http://www.isa.org/InTechTemplate.cfm?Section=ViewPoint1&template=/ContentManagement/ContentDisplay.cfm&ContentID=60814

________________________________________

Thus far, it seems to me that perspective matters a great deal. Jobs are the perspective that most of us relate to. Balance of trade and trade deficit get our attention. And, as James notes, what exactly qualifies as manufacturing? Certainly, within any manufacturing business, there are a percentage of workers other than production.

It is a less simple condition than we, and certainly the presidential candidates, think it is.


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