Feb
US Production is Still Strong
Everywhere we look around us, it seems like we see “Made in China” or some other country. Rarely do we see “Made in USA” on our everyday goods. However, the US manufacturing industry is still strong. It has just transitioned to higher class goods. This stat amazed me:
The U.S. by far remains the world’s leading manufacturer by value of goods produced. It hit a record $1.6 trillion in 2007 — nearly double the $811 billion in 1987. For every $1 of value produced in China’s factories, America generates $2.50.
Wow. We really do produce a lot of our (and the world’s) goods. But why do we continue to see low-end goods go overseas? What are we producing?
The U.S. sold more than $200 billion worth of aircraft, missiles and space-related equipment in 2007. And $80 billion worth of autos and auto parts. Deere & Co., best known for its bright green and yellow tractors, sold $16.5 billion worth of farming equipment last year, much of it to the rest of the world. Then there’s energy products like gas turbines for power plants made by General Electric, computer chips from Intel and fighter jets from Lockheed Martin. Household names like GE, General Motors, IBM, Boeing, Hewlett-Packard are among the largest manufacturers by revenue.
Also:
American factories still provide much of the processed food that Americans buy, everything from frozen fish sticks to cans of beer. And U.S. companies make a considerable share of the personal hygiene products like soap and shampoo, cleaning supplies, and prescription drugs that are sold in pharmacies. But many other consumer goods now come from overseas.
This is an interesting article. We are a country that is not stagnant and is able to change with the times. More of us are being paid for what we know. So often we judge a factory by how many workers it has. However, the true measure really is how much profit they make. As technology advances, advanced manufacturing facilities can make more goods with less people and for less money.
