Tuesday, January 18, 2011

American Manufacturing - How Could This Happen?


For many years I have volunteered for the APICS - The Association for Operations Management and to a lesser extent the Council for Supply Chain Management (CSCMP). Both groups are non profit educational and research organizations that deal with various aspects of the US manufacturing sector from operations to supply chain management. Perhaps I have donated tens of thousands of hours of time in various capacities including leadership, meetings, and writing.

For both groups, I have been somewhat critical over the years. I felt that a different direction was needed to enhance American industry. I think many were skeptical of my message, especially for more quantification to improve productivity.

This quote from Oscar Schafer summarizes the manufacturing situation that we currently face in America:

"Let me throw a few numbers out. In the 1970s, the U.S. had 20 million manufacturing jobs, with a population of 220 million. Now we are down to less than 12 million manufacturing jobs with a population of 320 million. Manufacturing is a little different from science, but the point is it's much cheaper to manufacture stuff in China and India. That's not going to change, and that's why unemployment will stay high." bold added

Rublin, Lauren R., 2011. Attention, stockpickers. Barron's, Jan. 15.

These are sad statistics and paint a very bad picture for future employment trends.

Unfortunately these trends were evident many years ago, however, few paid much attention. Now as a nation we are collectively paying the price in terms of weak economic growth.

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