The US Christian Science Monitor website published an article on November 2nd saying that although the Republican presidential candidate accused "we are not making anything anymore", the manufacturing industry is still very prosperous in the United States. The problem is that the factory needs less staff than it used to, because much of the work is done by machines today.
According to the report, since the manufacturing job reached its peak in 1979, the United States has lost more than 7 million factory jobs. But the Commerce Department said that after adjusting the inflation in the US dollar in 2009, the value of US factories has more than doubled during the same period, up from $1.91 trillion last year. This means that American manufacturers rank second in the world, second only to China.
According to the report, Trump and other critics are right. Trade has taken away some of the factory jobs in the United States, especially after China joined the World Trade Organization in 2001 and is able to enter the US market more easily. Competition from low-wage countries has reduced employment and production in industries that rely heavily on labor, such as textiles and furniture manufacturing. For example, US textile production has decreased by 46% since 2000. During this period, the textile industry will cut 366,000 jobs in the United States, or 62%.
But research shows that the automation of US factories is a much more important factor than foreign trade for the reduction of factory jobs. A study by the State University of Bauer's Center for Business and Economic Research last year found that trade factors accounted for only 13% of job losses in US factories. The vast majority (88%) of the reduced jobs are replaced by robots, or because of other domestic factors that reduce the need for labor in the factory.
Howard Shatz, a senior economist at Think Tank, said: "We are producing more with less manpower." For example, General Motors now employs only 600,000 people in the 1970s. one third. But it produces more cars and trucks than ever before.
We can also look at the production of steel and other primary metals. Since 1997, the number of primary metal production jobs in the United States has decreased by 265,000, a decrease of 42%, but during this period, the production of primary metals in the United States increased by 38%.
Duke University's Alan Collard-Waxler and Princeton's Jean-Dlock found last year that most of the decline in jobs in the US steel industry was not due to foreign competition or sales declines. These jobs disappeared because of the emergence of a new technology: ultra-efficient small steel mills that mainly manufacture steel from scrap metal.
The Boston Consulting Group predicts that by 2025, investment in industrial robots will grow at a rate of 10% per year in the 25 largest exporting countries, up from 2% or 3% in recent years.
The economic significance of robotics is unquestionable. When the product is replaced or upgraded, people can reprogram the robot faster and easier than retraining the personnel.
The report said that the rise of machines has a positive side for some American workers: the increased use of robots, coupled with increased labor costs in China and other developing countries, has reduced the incentives for companies to find low-wage labor around the world.
Multinationals are also rethinking how they expanded their production around the world in the 1990s and early 2000s, when they often made components in different countries and then assembled them in China or other low-wage countries. Japan’s 2011 earthquake and tsunami affected the transportation of auto parts. The bankruptcy of South Korea’s Hanjin Shipping Company left the cargo in the port, and these incidents exposed the risk of relying on distant supply lines.
Thomas Coddle, chairman of the North Carolina textile company Unifi, said: "If your supply chain is interrupted and your raw materials come from overseas, then the shelf is empty and you can't sell the product."
As a result, some companies are returning to the United States to save money on robots, low-cost energy, and opportunities closer to customers.
Kadell said: "They don't put all their eggs in the Asian basket."
In a survey conducted by consulting firm Deloitte, global manufacturing executives predict that the second-ranked US will surpass China to become the most competitive country in manufacturing by 2020. (Competitive measures include cost, productivity, and intellectual property protection.)
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