President Obama’s recent State of the Union address focused on manufacturing in the United States – which everyone, no matter their political persuasion, can agree is a vital part of our economy. Countries that don’t make things aren’t world powers, period.
And the numbers, on the surface, can look dire. According to Forbes, 22 million manufacturing jobs were lost globally between 1995 and 2002. The U.S. has lost hundreds of thousands of manufacturing jobs in that timeframe.
The common belief is that these jobs were palletized and shipped east to China or south to Mexico. That has happened (we’ve seen it in our client base more than once) but it’s only part of the truth. The reality is more complicated, and may help us to understand why manufacturing output has increased in the U.S. even while jobs have been reduced. Manufacturing output didn’t just grow; it rocketed 30% since 1995. China – the supposed vampire of manufacturing employment – lost a whopping 16 million jobs in the sector.
In a word, the “culprit” (if you want to call it that) is automation. Robotics has become less expensive and significantly more capable – and continues to improve.



Home
Catalog



