Adaptive Strategies Blog

Scott Jacobson

Bill, I think you are right in that we as a country have accepted the fact that we are not manufacturers. And as you say, we have decided to believe that we are service providers and that we are the brains behind all great innovation.

For a while that seemed like an okay belief because while shipping manufacturing out of the country prices declined and our economy kept booming. Putting the current economic conditions aside, I think we have yet to experience the real consequences of being a service society.

Assuming that the consequences will be more negative than positive, it will be an opportunity for America to consider its positioning in the world’s economy. That, I think will require political leadership that I am not sure we have.

Or perhaps we actually will lead the world in green technology and get some of our mojo back.

Brad Shorr

Bill, I agree with Scott right down the line. It is folly to think an economy based on consumer spending can succeed on any level for any length of time. What worries me most now are the national security implications. Or maybe an international crisis or war is what it’s going to take to restore leadership and vision to our political and business leadership.

Brad Shorr’s last blog post..How to Design a Leaflet

Brad Shorr

Bill, That’s a tall order! There is a vibrant pro-manufacturing, pro-common sense economics virtual community out there, but right now I believe the dominant theme is Government: The Solution to All Problems. It’ll take bloggers far more powerful than I to make any headway against that right now. We’ll see what tomorrow brings.

Brad Shorr’s last blog post..How to Design a Leaflet

Ken Brown

Bill – I remember years ago when I was entering college as an engineer wanna-be. It didn’t take me too long to see that the real winners as engineers were the students that had gotten their hands “dirty” as kids. Breaking things and then trying to fix them.

I have a brother in law who has a number of patents to his name in the auto industry. I watched him grow up and he was constantly taking cars apart, repairing small electric appliances and doing hands on learning.

If we switch to a service industry we may lose that “hands on” experience that makes a good engineer a great engineer.

Ken Brown’s last blog post..Do You Live in the Chicago Area? Robo Basho!

Leo Hopf

I am less concerned that you are on this Bill. It has been a long time since the US had more manufacturing than service jobs.

The US has an advantage and innovation. So early on the US can compete nicely. But late in the lifecycle when products and services have been commodified the US can no longer compete. The key is to keep filling the pipeline with new ideas.

Corinne Miller

Bill,

You raise an interesting connection.

For physical products, innovation isn’t just something that occurs on “design” paper that is then passed off to someone 10K miles away and we’re done. An understanding of how things go together and how parts play together is essential to the innovation process for physical products.

How do people learn how things go together and how parts play together? In the US, this understanding has come from manufacturing experience. As this experience erodes over time, that understanding of how parts play toegther, etc., will erode as well, and as such, we may not be as innovative for physical products.

Stimulating discussion Bill!

Fred H Schlegel

Hi Bill, I think Corrine identifies a huge concern. If the tools of production are elsewhere then the earthy experience of getting your hands dirty learning a process becomes less available. I’ve seen a number of smaller manufacturers send their line overseas and within a short period of time begin purchasing engineering services from the factories as well. They quickly run the risk of becoming little more than a marketing/sales organization dependent on other suppliers to deliver innovation for their own product lines. Add to that how quickly our next great manufactured product (software programing) has been moving off shore and it is indeed cause for worry.

Fred H Schlegel’s last blog post..Who Needs Innovation Training?

Zeke

Will:
You invited my opinion, so here it is. I wonder whether your worries are, at present, a bit misplaced.

The Democrats are about to ram through Congress the most onerous, business destroying (at least in the United Sates) piece of fantasy based legislation in American history, and you’re worried about the Chinese making Kindle batteries?

Back in 1930, Congress created the Smoot-Hawley Tariff Act, ostensibly to fight the depression by imposing tariffs on thousands of imported goods. This set off a trade war when other countries retaliated. The result was an exacerbation of the depression.

Cap and trade is merely a repetition of Smoot-Hawley in that Congress, in the midst of an economic crisis, is enacting legislation which will seriously undermine American business. Cap and trade will exact a tax from American businesses and industries for carbon emissions. The legislation aims, ostensibly, to force American business and industry to invest in inefficient so-called “green” technologies, which inefficiencies will further increase costs. Meanwhile, will the Chinese or Indians create their own versions of cap and trade? Not likely.

And what is the response of our contemporary politicians when they are warned about cap and trade making American goods too expensive to be competitive? Tariffs, which will increase the cost of imports. Do you think that might set off a trade war as occurred in the thirties?

And for what reason are we about to enact this cap and trade business killer? Why anthropogenic global warming, of course. A theory propounded by a charlatan named Gore, running around the world like Chicken Little, predicting our imminent demise. Meanwhile, skepticism about Gore’s pseudo-scientific certainty continues to mount (see today’s Wall Street Journal article: The Climate Change Climate Change). That skepticism has, apparently, not reached the halls of Congress where the push for cap and trade continues apace.

But, of course, cap and trade is not about combating global warming at all. The Obama administration needs the billions in additional tax dollars which cap and trade will plunder from business, industry, and the taxpayers. How else to finance the takeover of the medical sector?

You are currently examining various facets of the medical sector, with presumably, the goal of increasing its efficiency and effectiveness. You had better get that project done soon. Once the government creates a national health service like that of Great Britain, I doubt if anyone in the medical arena will be looking to hire you to increase its efficiency or cost effectiveness. Hey, do you imagine that anyone from Amtrak will be contacting you soon to study ways to improve its service?

In your response to Fred Schlegel, you pondered whether to write your senators and congressman. Do you think so?

Zeke

ken

Bill

For teaching youngsters about getting your hands dirty there is a wonderful program called US First. It was created by the inventor of the Segway two wheeled vehicle, Dean Kamen. US First has as it’s goal to help high school students to interact with professional engineers. The goal is to create a robot to compete interactively with other high school US First programs.

Manufacturers like Delphi Automotive have spent hundreds of thousands of dollars to support this program. Active professional engineers volunteer their time and energy to teach and work with youngsters in this program.

I think there is still hope for America’s future.

ken’s last blog post..Do You Live in the Chicago Area? Robo Basho!

Andrew

Bill,

I can certainly see your point of view and under absolutely no circumstances would I question the validity of the nature of your concerns or those of other readers in this regard.

That said, I would have thought that most of this is not so much of a problem but rather part of the healthy process of engagement international trade in the modern environment of the integration of national economies within the global economy.

On one side of the coin, Asia has come of age in terms of its manufacturing capabilities, and in areas such as the manufacture of electronic equipment, it is inevitable to some degree parts of the manufacturing base within your country will slowly move eastward over time.

But on the flip side, your country seems to be reaping huge rewards from the emergence of economies in Asia and elsewhere. Having taught as an English instructor in Korea for the past four years, I only need look at the vast array of opportunities which Americans and other westerners are snapping up working in public schools, higher education and in private training academies to appreciate the extent to which the development of these economies is opening up opportunities for Americans and those in the broader western world.

That’s not to mention that many of the teaching materials created being used here in Korea are imported from America, or that the bulk of the international media in terms of films, tv shows and outlets for news and current affairs are dominated by American media sources.

And then there are all of the areas like financial services, pharmaceuticals and military equipment and expertise, just to name a few, where demand for the output of firms from America and other developed western economies should continue to expand as these economies continue to develop over time.

So whilst I do not for a second question or doubt the validity of the concerns which you raise, I do not think it is altogether an unhealthy process that American consumers increasingly benefit from the technical capabilities of developing Asian countries whilst Asian consumers and businesses in return continue to reap the benefits of American expertise and experience in areas which America looks likely to continue to excel for the foreseeable future.

Andrew’s last blog post..June contributors

Andrew

Thanks Bill,

Certainly, the prospect of the American manufacturing sector giving up and simply withering toward a slow and painful death would be most unfortunate.

Far better it would be if competitive forces from Asia acted as an impetus to spur innovation and efficiency gains within the American manufacturing environment, and a viable American sector is able to operate alongside a booming Asian sector. That way, American consumers would benefit from being served by an improved American sector as well as the skills of Asian manufacturers.

Andrew’s last blog post..June contributors

Andrew

Bill,

I think we might have our work cut out there!
.-= Andrew´s last blog ..June contributors =-.