Can American Manufacturing Survive Global Trade?

If you live in North America, you have probably comemany other nations. These policies are designed for
in contact with the harsh reality that blue collarresponsible industrial manufacturing, but they result in
manufacturing and industrial jobs are becoming moremore costly operation with a trickle-down effect
scarce every day. The fact is, manufacturing withinthrough he supply chain.
the United States of America has been in decline forLiability is another aspect of doing business in the
years. It has only been in the last two decades thatUnited States. Industrial accidents are at an all-time
this decline has become painfully obvious. The globallow, however accident victims are compensated
market, that is, trade with foreign nations, is fueledmore here than anywhere else. Liability insurance is at
by cheap labor and economic conditions favorable toa record high with no signs of relief. This is a direct
industry growth. Many nations competing for theirresult of a record number of lawsuits and legal
place in the American marketplace have modernactions taken against companies. Many of the court
economies that are literally in their infancy. China isbattles are justified, but unfortunately many are
the prime example. When a blue collar Americansimply attempts at working the legal system for
worker loses their job to overseas competition, theireasy money. Regardless of the outcome in the
first reaction is to blame China. The Chinese economycourtroom, the costs associated with litigation are
happens to be prime for growth, inexpensivestaggering, hence much higher insurance rates.
manufacturing, and plenty of available labor. But theHealth insurance costs can also add to the expense
Chinese imports are really only the tip of the iceberg.of American industry. The United States has higher
American manufacturing and industrial factories areinsurance costs per employee than most other
also in competition with Japan, Indonesia, Vietnam,civilized countries. The reasons for this are complex,
Mexico, Taiwan, India, etc. The lower costs of laborbut the result is not favorable for American
needed for industrial manufacturing are only onemanufacturing. Add in rising fuel prices, increased
factor in the equation of demise for the Americanshipping costs, rising utility rates, and of course
labor force.unaffordable property taxes, and we have a formula
Environmental awareness in the United States actuallyfor failure.
works against American companies in regard toAmerican manufacturing needs to use lean
overall expense. Environmental awareness is the rightmanufacturing techniques, common sense
thing to do, however it comes with a price. The costmanagement, and strategic marketing to grow their
of waste disposal, operational permits, certifications,market share in relation to overseas companies. The
audits, and screenings are not free. American rulesAmerican government must also be diligent in
and regulations regarding environmental responsibilityenforcement of fair trade with countries where labor
are more stringent than many other parts of theand economic conditions provide cheap products for
world. In North America, emissions into thethe American consumer. Only time will tell if American
atmosphere are also heavily regulated at levels unlikeindustry can survive the global marketplace.