2. If you live in North America, you have probably come in
contact with the harsh reality that blue collar
manufacturing and industrial jobs are becoming more
scarce every day. The fact is, manufacturing within the
United States of America has been in decline for years.
It has only been in the last two decades that this
decline has become painfully obvious. The global market,
that is, trade with foreign nations, is fueled by cheap
labor and economic conditions favorable to industry
growth. Many nations competing for their place in the
American marketplace have modern economies that are
literally in their infancy.
3. The Chinese economy happens to be prime for growth,
inexpensive manufacturing, and plenty of available labor.
But the Chinese imports are really only the tip of the
iceberg. American manufacturing and industrial
factories are also in competition with Japan, Indonesia,
Vietnam, Mexico, Taiwan, India, etc. Visit David Pulman
for more info. The lower costs of labor needed for
industrial manufacturing are only one factor in the
equation of demise for the American labor force.
4. Environmental awareness in the United States actually
works against American companies in regard to overall
expense. Environmental awareness is the right thing to
do, however it comes with a price. The cost of waste
disposal, operational permits, certifications, audits, and
screenings are not free. American rules and regulations
regarding environmental responsibility are more
stringent than many other parts of the world. In North
America, emissions into the atmosphere are also heavily
regulated at levels unlike many other nations.
5. Liability is another aspect of doing business in the
United States. Industrial accidents are at an all-time
low, however accident victims are compensated more
here than anywhere else. Liability insurance is at a
record high with no signs of relief. This is a direct
result of a record number of lawsuits and legal actions
taken against companies. Many of the court battles are
justified, but unfortunately many are simply attempts
at working the legal system for easy money. Regardless
of the outcome in the courtroom, the costs associated
with litigation are staggering, hence much higher
insurance rates.
6. Health insurance costs can also add to the expense of
American industry. The United States has higher
insurance costs per employee than most other civilized
countries. The reasons for this are complex, but the
result is not favorable for American manufacturing. Add
in rising fuel prices, increased shipping costs, rising
utility rates, and of course unaffordable property
taxes, and we have a formula for failure.
7. American manufacturing needs to use lean manufacturing
techniques, common sense management, and strategic
marketing to grow their market share in relation to
overseas companies. The American government must also be
diligent in enforcement of fair trade with countries where
labor and economic conditions provide cheap products for
the American consumer. Only time will tell if American
industry can survive the global marketplace.
http://www.youtube.com/watch?
v=ytarg_yviR0
