The manufacturing industry is a very important blood line to the American economy. It has been the foundation for our success and growth since the days of the industrial revolution, which alone established the United States as an economic superpower. Manufacturing, in my opinion, is still the backbone of this country. The question to ask is what is happening to the industry right now? Some people say that American manufacturing is little by little dying or ending, which if you look at employment, it is in that regard. According to economists, we’ve been losing 250,000 or more manufacturing jobs every year on average since the 1974. However, if you look at output, probably the more relevant indicator of growth, we’re still seeing nominal increases, but why? Of course, this analysis puts the latest recession starting in 2009 to the wayside. In that period the U.S went from a 3% decrease of output in 2008 to a12% decrease in 2009 alone. However, the total share of GDP for manufacturing still hovers around 15%.

If you look at the trending data, it has actually been relatively steady over the last 30 years, but there is a negative relationship in employment, which is something that really concerns me. Like everyone else, I know who to blame for this. Companies were quick to off shore to countries in Asia like China which take the jobs and produce nearly everything that is imported into the U.S. However, you would assume that all of the output would be reflected in those numbers, but it really isn’t. We do see that there is an ever growing trade deficit between the U.S and China, but all data points to the fact that the heart of American manufacturing is still beating and is not ‘dead’ in any regard. If we have the output and the growth, then the jobs producing it need to be stabilized here. It is important to add that with the societal value changes and costs that domestic firms are seeing, some of those jobs are starting to trickle back to our shores.

In retrospect, there are those that argue that the powerhouse we were 40 years ago is an age that we will never see again. But what I think they meant to say is that we won’t ever have the number of jobs we once had in that sector. I think the U.S government has realized some of the mistakes they’ve made handling trade deficits by caving to those with alternative agendas. In fact, I think the issue became more pressing when the latest recession hit in 2009. People were infuriated over job losses, yet we had been experiencing some of these losses for more than 40 years. I think this was the boiling point for many because they realized how fragile the economy is, and we now have younger generations that didn’t know what the Great Depression was like. Therefore, I think this really hit home with many as their first hard economic downturn. With that in mind, people pressed for job creation, and continue to do so. I’m hoping that because we’re starting to move out of the recession that employers and government officials will still keep employment at the top of their agenda.

Socialization is developing a goodwill relationship with people who can develop and grow an economy. Putting this it into perspective, the American manufacturing industry can develop ties and bonds with countries that have the necessary materials needed in the manufacturing industry. This could be accomplished easily with fair trade initiatives and green practices. That way when it comes to relations with the working population of other countries as suppliers, we can foster a bond that results in a stronger supply chain and likely higher quality raw materials. I firmly believe that the boost in U.S manufacturing extends far beyond our borders, and most importantly, our people. It extends to the people of other nations, and I think there is mutual growth that can be accomplished with supplying countries. There are many companies that have came under the scrutiny of the public eye concerning child labor laws, unfair pricing, and environmental practices. This type of behavior doesn’t boast well for growth and long term relationships, nor doesn’t it represent well when other companies are prospecting international location.

Another way of boosting it through socialization is by enacting the ‘scratch my back, I scratch yours system’ to put it loosely. For example, American manufacturers, alongside governing bodies, can strike deals with 3rd world countries and others that are suppliers. The terms would include allowing better flow of raw materials, if American companies can invest with tax breaks in order to develop areas of those countries that are suffering. Not only would this ensure that companies obtain the materials they need, it would ensure that the supplying nation wouldn’t be left in the dust.

Devin Pringle is the author of this article on Screw machine products. Find more information on Precision cnc machining here.