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- Manufacturing in the United States

The following information was taken from the

Alliance for American Manufacturing web site http://www.americanmanufacturing.org/issues

The song is "We can't Make it Here Anymore" by James McMurtryhttp://www.local1562.com/cant song-1_0001.mp3

Manufacturing in the United States

Manufacturing in the U.S. generates about $1.6 trillion, or 12 percent of our gross domestic product, accounting for nearly three quarters of the nation’s industrial research and development (R&D), two-thirds of our nation’s total exports of goods and services, and supports more than 20 million high-paying jobs. Manufacturing also ensures we have a strong industrial base to support our national security objectives.

AAM believes that America’s leadership in the information age does not mean that we have to accept defeat when it comes to manufacturing. On the contrary, the nation that has the ideas and innovation, as well as cutting-edge technology and manufacturing, to win the global economic battles of the future. 

Inside modern manufacturing facilities, you’ll see the most productive, highly-skilled labor force in the world applying the latest in information, innovation, and technology.

The fact is, our manufacturing industry has been, and will continue to be, a vital component of America’s success.

Today, Manufacturing Faces Extraordinary Challenges and Opportunities

American families and communities depend on a strong manufacturing base to improve our quality of life. American manufacturers should have more opportunities to export their products and increase production in the U.S., but a staggering set of circumstances has resulted in millions of layoffs and threatens the foundation of our economy:  rising health care and retirement costs, a trend towards outsourcing jobs to low-wage countries, currency manipulation that distorts the marketplace, and unchecked cheating on international trade rules.

Some critics argue that a decline in manufacturing is inevitable. AAM begs to differ.  Other sectors of the American economy—finance, information, services, technology—are clearly on the rise. But that does not mean manufacturing should decline. Just as manufacturing depends on technological advances and on access to information and finance, these sectors depend on manufacturing. 

With manufacturing, America gets:

·       More R&D – American manufacturers are responsible for two-thirds of research and development investment in the United States; nearly 80 percent of all patents filed come from the manufacturing sector.

·       More Technology – American manufacturers are the leading buyers of new technology in the United States.

·       More Jobs – American manufacturing directly employs 14 million Americans and creates 8 million additional jobs in other sectors.

·       More Growth – American manufacturing is the largest single contributor the U.S. economy.

Tomorrow, America’s Success Depends on a Strong Manufacturing Base

As Federal Reserve Chairman Ben Bernanke stated on Feb. 28, 2007, “I would say that our economy needs machines and new factories and new buildings and so forth in order for us to have a strong and growing economy.”

Manufacturing is, and will continue to be, an integral part of the “new economy.” With manufacturing, the new economy will thrive. Without manufacturing, much of this new economy wouldn’t even exist.



- Holding China Accountable

Holding China Accountable

The U.S. trade deficit with China skyrocketed for the sixth consecutive year in 2006, reaching a record high of $233 billion – nearly one quarter of the overall U.S. trade deficit. The sheer size and permanency of this deficit raises serious questions about its causes, including to what extent the deficit is driven by government interventions in the Chinese economy.

In particular, the People’s Republic of China (PRC) maintains numerous policies including state-sponsored subsidies aimed at promoting investment, exports, and employment. Those policies have a direct role in increasing the U.S.-China trade imbalance and negatively affect the health of our domestically based manufacturers, service providers, and farmers.

When China became a member of the World Trade Organization in 2001, proponents argued that it would herald a new age of opportunity and would expand market opportunities for U.S. companies.   Unfortunately, China continues to follow a policy of export-led growth to build up its own manufacturing base at the expense of other countries. Almost 60 percent of China’s exports come not from Chinese firms, but from foreign-invested enterprises. Many of these companies set up operations hoping to serve the Chinese market, only to find a web of policies and practices to limit their opportunities there but incentives to export their products back to their home countries.

Just a few months ago, the director of the Chinese Government’s State-owned Assets Supervision and Administration Commission (SASAC), announced a new policy that raises serious questions about governmental control, involvement, and intervention in a number of major industries. In sectors ranging from telecommunications to steel to machinery and many others, China’s leaders made it clear that the state will continue to exert its control, making it virtually impossible for American firms to compete.

China has also provided massive subsidies to its companies to give them an advantage over U.S. farmers, workers, and businesses trying to sell their products to China, as well as flooding our market with their products. Company after company has been affected by a Chinese government policy that simply needs to be described for what it is: cheating.

China needs to be held accountable. It agreed to certain conditions when it joined the World Trade Organization but, time after time, it has refused to grant the kind of trade access to its markets that we provide to them. The result is one way free trade and, as noted above, skyrocketing trade deficits. Subsidies, dumping, currency manipulation, violation of labor rights, lax or nonexistent environmental enforcement– these are just some of the practices that must be addressed.



Some facts to consider:


Indiana has lost more than 109,800 manufacturing jobs since 2000.

• A recent EPI study found that Indiana lost more than 45,200 jobs between 2001-2006 just because of the U.S. trade deficit with China.

• While NAFTA has cost thousands of Indiana jobs, the China toll is even greater: Indiana job losses due to China average almost three times higher annually than NAFTA (9,040 lost jobs per year vs. 3,196 per year).

Manufacturing accounts for $67.2 billion of the state’s GSP, the number 1 contributor to the state’s economy.

The U.S. has lost more than 3.5 million good-paying manufacturing jobs since 2000, and more than 40,000 factories have closed in the past 10 years. EPI’s report also found that America’s lopsided trade deficit with China cost the U.S. 1.8 million jobs from 2001-2006.

The end result is more unsafe imports and a greater dependence on foreign factories to produce both our every day consumer goods and military hardware. Pennsylvanians, like the rest of the country, are telling candidates: “Before you get my vote, I want to know how you’ll stop China’s cheating.”

Taking action on China and enforcing U.S. trade law works: A recent report by the Alliance for American Manufacturing (AAM) found that when U.S. trade laws are enforced, workers, communities, and businesses are able to contribute 50 times more to the economy than any resulting increase in consumer prices

- Economic Security

Economic Security

Manufacturing has been the engine that drives the American economy for more than a hundred years. And it will continue to, well into the 21st century. America’s future growth, security and leadership in the global economy will depend on the strength and viability of our manufacturing base. That’s why it’s so important to reverse the current ebb:  the U.S. has lost more than 3.5 million manufacturing jobs since 2000 – almost 17 percent of all manufacturing jobs in this country. We can maintain our leadership position in the global economy, but only if we strengthen the core of our economy - manufacturing. 

America’s Economy Depends on Manufacturing:

·       Manufacturing in the United States generates about $1.4 trillion, or 12 percent of our gross domestic product.

·       Manufacturing is responsible for nearly two-thirds of private sector research and development in the United States.

·       Over the past two decades, manufacturing productivity has increased at twice the rate of the rest of the private sector.

America Depends on Manufacturing for Good Jobs:

·       Manufacturing directly employs 14 million America and supports 8 million more.

·       Each manufacturing job supports as many as four other jobs, providing a boost to local economies. For example, every 100 steel or every 100 auto jobs create between 400 and 500 new jobs in the rest of the economy. This contrasts with the retail sector, where every 100 jobs generate 94 new jobs elsewhere, and the personal and service sectors, where 100 jobs create 147 new jobs. This multiplier effect reflects how manufacturing’s linkages run deep into the overall economy and means improvements in manufacturing productivity translate broadly into the economy as a whole.

·       Since 1999, over 40,000 manufacturing facilities have closed.

·       The resulting job losses have hit minorities, the south, and rural areas the hardest.

·       One study showed that at least 52 percent, and up to 88 percent, of manufacturing workers in selected states who lost their jobs between 2000 and 2004 did so because of trade.  The replacement wages for workers who found subsequent employment fall far below the wages paid in their former manufacturing jobs.

Across The Nation, Our States Depend on Manufacturing:

·       Manufacturing is a vital part of the economies of most states. As a share of gross state product (GSP), in 2001 manufacturing was among the three largest private-industry sectors in all but 10 states and the District of Columbia.

·       Manufacturing is the largest sector in 10 states and in the Midwest region as a whole. It’s the second largest in nine states and the third largest in 21 others.

Sources:  Bureau of Labor Statistics, Industrial Union Council, National Association of Manufacturers

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