From 2000-2010, the U.S. lost nearly a third of its manufacturing workforce as the plants closed and manufacturing moved overseas. However, in recent years, manufacturing employment has increased as several industries rebounded and domestic plants have become more cost-competitive. In an article in the
Wall Street Journal, author Bob Tita identifies nine policies to spark growth and revitalize U.S. manufacturing.
Business and political leaders are advocating strategies to accelerate job gains and attract investment in manufacturing. Their ideas range from reducing regulations to imposing a value-added tax on imports to fund manufacturing training programs. In
“How to Revitalize U.S. Manufacturing,” Tita identifies these nine policies:
- Making exports more valuable
- Introducing a Value-Added Tax (VAT)
- Deal with an overvalued currency
- Look at the true cost of offshoring
- Purge duplicate regulations
- Look at more than jobs
- Turn community colleges into career factories
- Spend more on manufacturing R&D
- Create regional centers of expertise
Manufacturing is a significant generator of wealth for an economy, since it requires processes, materials and work skills that create employment and profits at each step in an assembly. While there are many positives in the industry, focusing on strategies to attract manufacturing investment and create jobs are critical.
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