MIT conference counters myths of manufacturing
May 11, 2012
U.S. manufacturing revival (credit: MIT)
The U.S. manufacturing sector, which is burdened by negative stereotypes, is showing signs of revival, according to speakers at The Future of Manufacturing in the U.S. conference held on May 8 and 9 at MIT.
The United States added about 50,000 manufacturing jobs this January alone, the largest monthly gain since 1998, and companies such as Ford Motor Co. have moved overseas plants back to the United States.
High energy costs (which make global shipping more expensive), along with rising foreign wages in some industries, have provided reasons for companies to consider relocating their factories in America. About 43 percent of firms in one survey would consider moving their factories back to the United States.
Manufacturing has seen major job reductions in the United States — from 18 million jobs in 2001 to 12 million today, but the sector still accounts for 70 percent of private-sector R&D spending in America and 90 percent of U.S. patents issued today.
MIT President Susan Hockfield, who co-chairs the steering committee of the White House’s Advanced Manufacturing Partnership (AMP), discussed some of the imminent recommendations that group is going to make: policies intended to improve the business climate for manufacturers; programs to encourage people to develop skills useful for manufacturing jobs, especially through community college education; and funding for new regional technology-development test beds called Manufacturing Innovation Institutes.
Government can further encourage innovation with tax credits that reduce moving expenses when companies bring jobs back to the United States; a permanent tax credit for R&D; a reduction in the corporate tax rate; more incentives for business investment; better worker training on the part of companies, not just within the education system; and continued innovation by U.S. firms.
Technological research that may provide the biggest platforms for economic growth: lightweight materials, flexible electronics, pharmaceuticals, rapid prototyping — such as 3-D printing — and the use of recycled materials for manufacturing.
Comments (7)
by Dennis R.
I like the comment about business providing better worker training “not just within the education system.” Especially if corporations want to avoid taxes for things likes schools, etc., then they should be doing more training of their workers.
But they’re only going to do what’s in their economic self-interest and they won’t be re-creating the types of jobs where unionized labor can demand (and receive) escalating pay scales with good health benefits and good retirement benefits. The world is changing too quickly for that. These may be manufacturing jobs, but they probably won’t pay much more than service industry jobs. Most won’t be much more fulfilling.
And looking at this as a positive because it’s happening to/for the US is kind of insular thinking. I realize it’s a hard mind-set to overcome, but jobs that give people anywhere access to a better life should be celebrated. We should be thinking beyond the borders of the US to include all of humanity and their betterment.
by MarkOates
That first paragraph seems a little odd to me. As if “The Future of Manufacturing in the U.S” is going to tell everyone that manufacturing is not super awesome and getting even awesomer?
The advent of 3D printers are going to be some kind of renaissance for the manufacturing industry? That’s like saying email is going to cause an rapid economic growth for the mail delivery industry.
The whole article feels a little off-kilter.
by grettir76
This is great news for the US, if anything it proves that automation is upon us, the real trouble begins when the service sector gets hit with it full force.
by CJ Townsend
really what free markets? The US? no free democratic market exsts here. The fed printed the money, the boom happend, the fed upped the interest rates and contracted the money supply and the bust happened. Where is the free financial market? Every boom and bust is casued by goverment intervention in the money supply, inflation always causes it. All of the derivitive, etc are all window dressing to a crisis fomented by the FED and congress.
by Locke
Government should absolutely be involved in regulating business to protect its citizens from the harm a large entity with no self motivated conscience.
But I agree they need to stop meddling in what private citizens do as long as it causes no-one harm or loss.
What I am most interested in about this article is, how many manufacturing jobs were “created” or “moved back to the US” simply because cheap illegal slave labour has become readily available within the borders of the country?
by Ayn
That Government which does least, does best. Susan Hockfield.. Stop “meddling” and just get out of the way!
by long-don-jon
We’ve seen what happened when markets are left to their own vices.