Ask the Experts

Question: Since the economic downturn, many policy makers have strongly advocated for strengthening the manufacturing base in the U.S. Why is manufacturing suddenly so popular?

	Mike Lehmkuhler Managing Director, Strategic Properties/ Projects Business Development Virginia Economic Development Partnership
Manufacturing provides a greater economic impact than the services sector because production utilizes inputs from many other businesses, both in terms of finished parts, intermediate goods, and raw materials as well as various support services. It also provides an opportunity for development of hard and soft, transferable workforce skills that improve overall product quality and/or operating efficiencies. Finally, manufacturing of superior products provides export sales growth possibilities that help fuel further expansion of domestic jobs and investment.
	Dr. Thomas Kurfess Director, Automotive Engineering, Clemson University International Center for Automotive Research
I do not think that the emphasis on manufacturing has changed since the economic downturn; however, people are taking note of manufacturing since it is the vehicle by which we can turn the economy around. As manufacturing goes, so goes the economy. That is to say, if manufacturing experiences an upturn, we will certainly see the economy improve. That being said, it is critical that policy makers set our country on a direction that continually strengthens and encourages manufacturing. Sectors such as automotive, energy and aerospace, just to name a few, are a significant portion of our economy. We need to ensure that these industries are strong, not only because they generate wealth, but also because they provide jobs for millions of citizens. Those jobs are not just directly linked to the original equipment manufacturers (OEMs) such as GM, Ford, BMW and Boeing, but are also linked to many of their suppliers who provide sub-systems and services for these OEMs. Manufacturing is not dead in the United States of America, in fact it is a critical part of our well being. With the right policies towards the manufacturing sector, a strong economy can not only be regained, but also continued for future generations.
	Dr. Jay Tice Director, Manufacturing Extension Partnership of Mississippi Mississippi Technology Alliance
Since World War II, manufacturing has been a key sector in the establishment, rapid expansion, and sustainability, of the American middle class. Even with the recent loss of manufacturing jobs, U.S. manufacturing remains robust and is ranked first at more than 20 percent over the past 30 years in its contribution to global manufacturing. I believe increased advocacy for the strengthening of the U.S. Manufacturing base is due to its: High Wages and Benefits—some 22 percent higher compensation than non-manufacturing. Importance to National Security—its vital role in the U.S. defense industry. Increased “Re-shoring” of Jobs—some “off-shored jobs” are returning to the U.S. because of long lead times, quality issues, and increasing shipping costs.“ Contribution to R&D—more than half of the $193 billion of private sector annual R&D investment is provided by manufacturing.
	Michael Carolina Executive Director, Oklahoma Center for the Advancement of Science and Technology
Policy makers at the federal and state levels have rekindled their understanding of the strategic value and economic relevance of manufacturing in the U.S. As our nation continues to recover from a deep recession, manufacturing can be a driver to speed recovery and build economic stability. Until recently, manufacturing jobs have been outsourced from the United States to foreign destinations. We are now seeing signs that a significant number of those jobs are returning—at least in some sectors of manufacturing. That is good for America since data show that manufacturing jobs pay 20 percent more than service-sector jobs. Manufacturing excellence calls for new product and process research and development—an American strong suit. Furthermore, our national defense and security are closely tied to U.S. manufacturing capabilities and manufacturing innovations. Manufacturing is a rich part of our nation’s history and heritage. We build things that range from relatively simple things such as railroad spikes to complex things such as advanced robots. We build things that employ people at good wages. Going forward, we need policies and incentives that will grow our manufacturing base and increase our (manufacturing) productivity and competitiveness. Such policies and incentives are critical to our overall approach to economic recovery through creating jobs.

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