Manufacturing Loss Costs More than Just Jobs

An ex Photocircuits engineer says the gutting of US manufacturing has led to a huge shift in ownership of US assets, with dire consequences for all Americans.

“With only a very small manufacturing base left, there is a small need to make capital investments in these businesses. Capital investments are what drive productivity,” writes Jason Tillberg.

He’s preaching to the choir, no doubt, but I always find it interesting when folks support their  with details. In this case, Tillberg points to the massive transfer of ownership of US assets to foreign entities — remember Ross Perot’s “giant sucking sound” metaphor? — as a real cost paid by Americans through its inability (unwillingness?) to compete in manufacturing.

I find his thesis a bit incomplete and scattered, but he makes an important observation on capital investment and the disincentives to invest in a shrinking manufacturing base.

(As an aside, Tillberg talks about his experiences at Photocircuits in another piece on productivity written a few years back.)

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About Mike

Mike Buetow is editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He is also vice president and editorial director of UP Media Group, for which he oversees all editorial and production aspects. He has more than 20 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow