Why Factories Are Coming Back To The U.S. (A Few Thoughts on Manufacturing Return)

The U.S. is poised to become again one of the leading advanced manufacturing nations in the world. After decades of decline and misaligned policies there has been some movement to capitalize on new technologies and opportunities offered by the Digital Era. As advanced products and technology are being invented in the U.S., the nation will need to develop its human capital to match improvements in infrastructure, supply chain, and greater global investment interest. 

Notes:

A few notes from the video. Brackets () are simple thoughts and observations.

-Low wage and heavy labor industries are not fitting well with U.S. economy but higher technology and advanced education/training positions in manufacturing are growing. (As people develop their skills and gain new knowledge they have higher market value and in general create greater value for companies.)

-Skilled training has improved worker lives and they are getting interviews. (Human capital is central to growth in advanced manufacturing nations and countries.)

-Notice that manufacturing cost is about what it is in China but there are other infrastructure and locality factors unlikely to be fully factored into the numbers. (It may be possible to come to price parity as infrastructure, technology, and human capital/skill rises.)

-Increases in government space funding have led to a space industry that has become profitable. (These are spark investments that lead to increased industry interest and investment that take on their own process. I came up with a loose innovative transactional cluster theory that sort of helps explain that.)

-Lots of policy decision makers are confused about how complex the economy is and simple understandings could derail the decision making process (Rules of thumbs work when they are based on science but at the same time they are rules of thumbs because they don't necessarily apply specifically to any situation. For example tariffs can help build local businesses but at some point make industries non-competitive beyond inception. Market factors should force them to compete directly after seedling initial development stages. Easier said then done when finding the balance.)

-New manufacturing and policies sift and adjust the economic factors. (Generally, as more special interest groups get involve, the more the market factors are insulated and miscued from the decision making process. Not a problem it if helps us look long term but is a problem if policy and economic factors are not in alignment. Strategic and critical thinking is important if one is a policy maker.)

-Labor shortage is a big issue and high technology immigration is needed to further these industries. (We know this to be a difficult decision as low skill and high skill immigration are two different conceptions.)