In an article written and published by Ed Crooks on January 6, 2011 entitled “America: Riveting Prospects,” he writes about why companies in America are opposed to exporting.
To summarize his article, showcased is the Middle River Aircraft systems plant where the world famous Rosie the Riveter, during the second World War, represented the millions of women that joined the manufacturing workforce making the industry a power house, and compared it to today’s meager offerings. The plant that is now owned by GE, although still thriving has faced some tough times through the years. Although weathered by the storms, the president of GE’s aircraft parts division has hope for a brighter future.
Although some political leaders and some American businesses also have hope in rebuilding growth and employment based on manufacturing, production, exporting and earnings and less on construction, consumption, importing and debt, leaders of some of America’s largest manufacturing companies feel that it will be a long hard road to rebuild production in the U.S. GE’s chief executive Jeff Immelt, however, shares with Andrew Liveris of Dow Chemical the dream of restoring industrial America to greatness, especially with unemployment at 9.8 and rising. Liveris has even written a book on the topic of how to be competitive on a global basis, “Make It in America: The Case for Reinventing the Economy.”
Ed Crooks, however, claims that many U.S. companies, overall, has issues with exporting. Although the world offers many opportunities and America is seeing some of the benefits with emerging markets in China, India and Brazil and creating everything from a-z, Barry Botsworth of the think-tank, Brookings Institution, states that although the U.S. is similar to other developed countries in importing, we are very poor when it comes to exporting manufactured goods. Other industry executives agree that the problems with U.S. manufactures run deep. Ed Crooks has given five reasons to support his view and I summarize them as follows:
* American industries are not familiar with selling internationally. According to the chamber of commerce, only one percent of U.S. companies participate in exporting and 58 percent of those companies only export to one other company.
* The United States has been the most inactive entity at signing agreements to participate in international trade. With about 262 agreements around the world and about 100 in negotiations, the U.S. has only signed 17. In addition, the U.S. is severely affected by tariff barriers and ranks number 8 out of 121 ‘tariff-faced’ exporting countries.
* U.S. manufacturers have inefficiently skilled and inefficiently educated workforces which threaten the industry base to fall into disrepair, job opportunities to dwindle and closing of production lines. Furthermore, without a strong pipeline of industrial talent in the future, there will be no capacity for future opportunities, no chance of developing new market segments, or creating the next innovation in aerospace, which will further deteriorate the industrial base of the U.S.
* With the emerging economies furthering skills and facilities, there us the opportunity for them to …