New proposals to revive the American manufacturing seems to appear every day from politicians, industry leaders, and engineers. Many of these ideas and suggestions have merit, however, they fail to recognize that manufacturing has been declining for long decades and cannot be simply resolved by tax cuts or trade policy. The United States was primarily an agricultural economy through the 19th century. The industrial revolution then, late 19th century, swept the landscape and transformed America once and forever. America than standing as the industrial powerhouse of the world by the 1950s produced more goods than any other nation in the world. Manufacturing stayed strong until the late-1970s and 1980s, when the US first lost its edge to the Japanese, then to the Chinese, and have now become a service economy that doesn’t produce stuff.
Although America has always been a service-based economy, where the number of employed Americans has been greater in the service sector than in manufacturing since the turn of the 20th century. It is noteworthy that the manufacturing efforts in the US have declined dramatically in the past few decades. Industrial powerhouse cities like Detroit and Tennessee fell victims to the migration of American manufacturing. The loss of manufacturing in America manifested itself most Cleary in job losses, according to the Economist, for the first time since the Industrial Revelation fewer than 10 percent of American workers are employed in manufacturing.
However, in the most recent years, we’ve seen a comeback from some American manufacturers, even Japanese. The proposed 1.6 billion dollars manufacturing planet from Toyota and Mazda has left the states in a bidding war. The planet that is still in the solicitation processes of finding a home state is estimated to employ 4 thousand employers and tag along with a few thousand indirect jobs. This planet will be a major boost for the American economy and its manufacturing sector.
Author: Faris Souman, Sabre88 LLC
Editor’s note: Original Sources