The Death of American Manufacturing is Greatly Exaggerated

[Toro]

... The value of U.S. manufacturing output in real terms (adjusted for inflation) was a little more than $3 trillion in 2008. That is up from $1.2 trillion in 1972. If the U.S. manufacturing sector were a separate country, it would be the world's fifth-largest economy (behind the rest of the U.S., Japan, China and Germany). The U.S. remains the world's largest manufacturer. Full stop. ...

Before the end of this business cycle, the real value of U.S. manufacturing output was never higher. If that is true, why is it that we can go into a store and have difficulty finding goods produced in the U.S.? The simple answer is that many of the goods that are manufactured in the U.S. are not finished consumer goods. Often they are parts or components that may be exported and further processed or assembled abroad, often in affiliates of U.S. multinationals, and capital goods.

Metals, minerals and chemical products are the largest U.S. manufacturing sectors, but you are not going to see them in Wal-Mart or Tiffany's. The U.S. also manufactures motor vehicles and other means of transportation, foodstuffs, computers and electronics, machinery, appliances and furniture. ...

Output per manufacturing worker has roughly tripled since the early 1970s and doubled since the early 1980s. Today it stands just shy of a quarter million dollars per worker. For the past decade, what economists call multifactor labor productivity has risen at an average annual rate of 4.6%. This is nearly two-thirds faster than overall non-farm productivity growth.

The number of manufacturing workers fell by 30%, and output per worker grew three-fold. How could that happen? Technology, broadly understood, is the key. On one hand, we have organizational and conceptual advances, such as continuous improvement, and lean techniques, including concepts learned from others, such as just-in-time inventory management.

On the other hand, investment has boosted the amount of capital per worker. The stock of capital per manufacturing employee has more than tripled in the last quarter century. Simply put, manufacturing has increasingly become capital-intensive rather than labor-intensive.

http://www.thestreet.com/p/_rmhpta/rmoney/marketcommentary/10606561.html

 

[rdean]

... The value of U.S. manufacturing output in real terms (adjusted for inflation) was a little more than $3 trillion in 2008. That is up from $1.2 trillion in 1972. If the U.S. manufacturing sector were a separate country, it would be the world's fifth-largest economy (behind the rest of the U.S., Japan, China and Germany). The U.S. remains the world's largest manufacturer. Full stop. ...

Before the end of this business cycle, the real value of U.S. manufacturing output was never higher. If that is true, why is it that we can go into a store and have difficulty finding goods produced in the U.S.? The simple answer is that many of the goods that are manufactured in the U.S. are not finished consumer goods. Often they are parts or components that may be exported and further processed or assembled abroad, often in affiliates of U.S. multinationals, and capital goods.

Metals, minerals and chemical products are the largest U.S. manufacturing sectors, but you are not going to see them in Wal-Mart or Tiffany's. The U.S. also manufactures motor vehicles and other means of transportation, foodstuffs, computers and electronics, machinery, appliances and furniture. ...

Output per manufacturing worker has roughly tripled since the early 1970s and doubled since the early 1980s. Today it stands just shy of a quarter million dollars per worker. For the past decade, what economists call multifactor labor productivity has risen at an average annual rate of 4.6%. This is nearly two-thirds faster than overall non-farm productivity growth.

The number of manufacturing workers fell by 30%, and output per worker grew three-fold. How could that happen? Technology, broadly understood, is the key. On one hand, we have organizational and conceptual advances, such as continuous improvement, and lean techniques, including concepts learned from others, such as just-in-time inventory management.

On the other hand, investment has boosted the amount of capital per worker. The stock of capital per manufacturing employee has more than tripled in the last quarter century. Simply put, manufacturing has increasingly become capital-intensive rather than labor-intensive.

http://www.thestreet.com/p/_rmhpta/rmoney/marketcommentary/10606561.html

The US can only continue to dominate if we invest in education and rebuilding our infrastructure. Two things Republicans are vehemently against. And at the same time, they scream for jobs. Ask what are they qualified for? What kind of jobs? The silence becomes deafening.

After a moments pause, they will start calling names.
Honestly, I don't know what they want.

Then there is the damage caused by the lame attempt to teach "magical creation". How many young minds have been turned away from science because they have been convinced that scientists have a secret agenda that is detrimental to America?

 

[Zander]

There is a huge pile of bullshit on the numbers. American "manufacturers" (sic) take components that are 100% manufactured in other countries, assemble them here, and stick a MADE IN USA label on them. It is the manufacturing equivalent of the "unemployment" figures. WAKE UP!!!!

 

[The Rabbi]

No actgually the US manufactures more than we ever have. The product mix is different. And employment in manufacturing is down, not from outsourcing but from increased efficiency.
And I knew it wouldnt be long before someone had to blame the Republicans for something,.

 

[Shogun]

what a crock of shit. I invite any of you silly fuckers out to the midwest to tell all these dying communities that, in fact, their unemployed asses are REALLY making more products than they did 15 years ago.


WOW. You people are out of touch. Surely, a wsj-wannabe rag will prove otherwise with statistics.