Saturday, August 13, 2016

Strategic trades require nurturing

Presidential candiates are bashing one another, when they should be addressing speicific topics like this one.

For all of my working lifecycle, I have been engaged in manufacturing industry or otherwise promoting its importance. While my enthusiasm went one way, America's industry trends went another. In part, it was a matter of global competition. On the other hand, it was an issue of strategic policy decisions.

What has happened to Manufacturing America, and what can be done about it?

First, you hear politicians speak about creating jobs and about international trade policies. Globalism is the catch word that represents a condition whereby workers in the world are gauged more equally about the value of their skill, knowledge, experience and proficiency. The trend is for the same workers performing the same effort to be appreciated and compensated similarly. That trend is complicated when introducing quality of life, safety and environmental standards that vary among host nations. Trade agreements are negotiated in part to protect workers from exploitation, as well as to ensure that consumers are afforded lower cost goods and services.

Nation-states that are not aligned with American values and standards may gain competitive advantage, especially where there is a larger population of available workers who are willing to work for less.

The popular debate today is about what kinds of jobs should be protected by American trade policy. Should America fight to bring back t-shirt manufacturing or should the nation fight for computer manufacturing is an instance debated on the August 12th McLaughlin Group television program?

A part of the argument included that a t-shirt made in China and sold at Wal-Mart help poorer Americans with cheap clothing. On the other hand, the American textile and clothing industry has vanished along with those jobs. Another argument is that American should not fight for "obsolete" work, but needs to focus on manufacturing of high-tech products.

I have been a member of the National Defense Industry Association for most of my working career.

"About the NDIA Policy Department 
The National Defense Industrial Association (NDIA) is the premier association representing all facets of the defense and technology industrial base and serving all military services. The mission of the Government Policy Department is to ensure the continued existence of a viable, competitive national technology and industrial base, strengthening the government-industry partnership through dialogue, and providing interaction between the legislative, executive, and judicial branches. Government Policy entails three primary roles: 
Policy (legislative, regulatory, and judicial) 
  • Information/Education (Issue Briefs/Alerts, studies/analyses, hearing summaries, and symposia/seminars) 
  • Interactive Communication/Dialogue (members network, homepage, and survey/reports). 
Mission 
Working together to ensure the continued existence of a viable, internationally competitive national technology and industrial base and strengthening the government-industry partnership through dialogue and interaction with the Congress and the Executive Branch." 
http://www.ndia.org/Policy/Pages/default.aspx

At the Pentagon, there is this special office, Manufacturing, and Industrial Based Policy (MIBP). This office supports the President and implementation of the Defense Production Act (DPA) that grants the President powers to ensure the availability and timely delivery of products, materials, and services to military and civilian agencies. It codifies a robust Presidential legal authority to enlist industry to give priority to national security production and provides for statutory review of foreign investment in U.S. companies.

The horses left the barn long ago when the nation's machine tool builders went out of business. The horses left the barn when America lost its cadre of skilled trades crafts workers who have the skill and knowledge to produce precision parts. The horses left the barn when America lost its ability to manufacture metrology instruments.

America's strategic skills still reside in the auto industry and the aerospace defense industry, however, reviving the nation's ability and capacity to manufacture consumer products is needed to re-engineer a sustainable economy.


Image from NDIA

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