I must confess that this is a good post Eric.You have said it all
1.USA has all it takes to become makers
2.That all it takes is the political will and intestinal fortitude to champion it and establish the conditions that encourage it.
I must also say that you made a good analysis which gave a good picture of what you are driving at.
the irony of it is that most of the developing countries where heavy importation of electronics and other consumer goods take place don,t even know that USA is not even manufacturing those goods and one of the major reasons why they buy and trust so much in these goods is because they are thought to come from the US and so quality and durability is not a question.
Now what happens if US now move in to manufacturing?
Adeniji, its true what you mention about the perception that US companies make quality products and its ironical that these are no more being manufactured in the US. This is true of not only the semi conductor but most industries with OEMs based in US and manufacutring in China!
I don't know if you are following the Currency Markets but the US Dollar hit fresh all time lows against the Chinese Yuan,Swiss Franc,Australian Dollar and the Euro recently.
All thanks to Ben Bernanke's QE2 policy to explicitly destroy the value of the US Dollar.And its working.Will this be good enough to bring back all the manufacturing that has left Amercia for Asia??? I am not so sure.But its still worth a shot.Atleast the Govt. can say they are lending a helping hand to manufacturers(even if it means destroying the savings of the consuming class who earn in US dollars and have to buy Foriegn products-Do you see many Made in USA Tags nowadays???)
Besides the cheap labor, there are lots of other factors such as cheap electricity, cheap rents, lack of copyrights and labor laws etc that have China so successful in manufacturing. I think the US government will have to take things in their own hands and encourage the manufacturers to start producing. In the initial period the costs might be high, but in the long run I believe they will come down.
Interesting! Of all those factors you mentioned, which is the one that is really keeping companies from bringing their businesses from China? From what you mentioned, it would be the electronics components supply but you can always ship that.
Quantitative Easing and its impact on the currency valuations is a good idea, but is it enough to lure companies into bringing back the manufacturing to the states? I doubt it. The currency advantage, that helped China build up the manufacturing infrastructure and which brought the industry to its shores, is difficult to be replicated elsewhere.
This is an excellent article with many valid points. The biggest problem I see is the skilled labor workforce. Yes, we have plenty of skilled workers able to build anything. The problem is many of these workers are still demanding a premium rate. Even though we have high unemployment with many employable workers, many that got laid off from high paying manufacturing jobs have a hard time accepting new jobs at more reasonable wages that allow companies to hire workers and stay in business. Whether it's the unions or the pride of workers, until our workforce stops thinking they need to be able to afford anything they want, many companies are going to have a hard time brining manufacturing back to the U.S.
"The currency advantage, that helped China build up the manufacturing infrastructure and which brought the industry to its shores, is difficult to be replicated elsewhere."
If the US Dollar becomes so cheap (vs the EURO,The Yen and the Chinese Yuan) so as to make American products extremely attractive all over the world;then we can see the possibility of a resurgence in US Manufacturing just like in China.My bet is it can be replicated;if similar environment is created.
My point being, "..is difficult to be replicated elsewhere."
The move into China was not a sudden one but a result of long thought out strategies in the silicon valley offices. Of course, if US persists and manages to balance the currency, there is no reason why manufacturing in the country cant be a good bet. But, do I really see the political will and policy to make it happen? Or how strong a pull would that be vis-a-vis the eastern players who have tasted the economic success and would be very eager to keep at it? It seems such an uphill task here onwards for the US, I bet it cant be done in the near future.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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