THE 1787 VISION
Even though we have shipped an unprecedented amount of production overseas, the United States remains the second-largest manufacturer in the world, and we still have a lot of the infrastructure and personnel we need to reclaim the number one position. There are five ways to jump start this effort:
Stop relying on “just in time” supply chains by bringing vital ones back from overseas. Before the pandemic, the U.S. generally considered only things like weapons and semiconductors “vital,” but we need to expand that definition to include things like pharmaceuticals and medical equipment. Currently, around 80 percent of the ingredients in our pharmaceuticals come from overseas.
To achieve this, we need to heavily invest in advanced manufacturing for things like 5G, lasers, innovative computer chips and software engineering, as well as investment in emerging technologies like artificial intelligence, high-performance computing and synthetic biology.
We believe we need to capitalize on the vast shortage of semiconductors, which are used in everything from vacuum cleaners to space shuttles. As it stands now, the semiconductor shortage is bad news because it forces car companies and other manufactures to cut production. It is also a national security issue because most of these existing plants are in close proximity to China.
Semiconductor factories are complex and take forever to build — and really, really, really expensive — but that’s all the more reason to start construction asap. Currently, the United States manufactures 12 percent of the world’s semiconductors. Meanwhile, just one Taiwanese company manufactures 70 percent of all microcontrollers, a chip used in most every vehicle around the world.
And get this. A lot of the international factories that build advanced weapons systems for China use American chip technology. So, essentially, China is acquiring missiles that can one day threaten our military — and they are using OUR OWN TECHNOLOGY TO DO IT!
Expand relationships with organizations like Fraunhofer-Gesellschaft, the leading organization for applied research and development based in Germany. Partnerships like these can drive scientific progress and economic development. We can build on the already six Fraunhofer centers scattered throughout the United States.
When we begin to manufacture all of these things stateside, we have to make sure there is enough demand for them. We can’t force Americans to buy American, but we can force the federal government to. We need to demand that the federal government commit to targeted procurement of our newly manufactured items and incentivize state and local governments to do the same. We also need to view the entire world as our customers. (read more about this in the Trade section)
Although we can’t force Americans to buy American, we can certainly entice them to. The main reason all this stuff moved overseas is the cost structure, but we bet Americans would happily pay a few cents more at the register to see our manufacturing sector roar back. We just need to convince them that the extra money is for the greater good, as well as for their own safety. The difference in the quality of pharmaceuticals, for example, varies widely around the world.
To this end, we should launch a massive marketing campaign to underscore the importance of this effort. Plus, we should require that all manufactured items sold in the United States include where the item — and each component of the item — were manufactured. We will speak directly to the American public’s patriotism!
As we redesign our future, it’s important to remember that the American manufacturer worker doesn’t need (or want) to be coddled. In truth, they are much more resilient than condescending politicians often give them credit for.
These workers — the very backbone of America — have proven over and over that they are as flexible as they are committed. Beginning in World War II, when the auto industry changed its line to make tanks and bombers for the war effort, American enterprise and its work force has absorbed major shifts brilliantly.
Likewise, the communities around these workers have the most fabulous ability to adapt as well. It’s actually remarkable.
Even cities that completely lost their leading industry have shown they can thrive. Pittsburgh is a perfect example. Pittsburgh, as their football team proudly champions, used to be the gold standard for steel production. But as the world turned, the city was proactive and cleverly broadened its focus.
Pittsburgh now has five leading industries: advanced manufacturing, health care, energy, financial and business services, and information technology. This vibrant city also attracts emerging industries like Robotics and Artificial Intelligence, Cyber Security, and Additive Manufacturing.
All that said, the federal government still needs to provide a financial backstop for these families and communities, just in case there is any gap between winding down old jobs and beginning new ones. This should include temporary income replacement, strong protections for pensions, and retraining and relocation support. Read more here.