Category: Campaign

  • Two Interesting American Toy Manufacturing Companies

    Two Interesting American Toy Manufacturing Companies

    When you go to your average retail store in the United States, most of the toys that you see on the shelves were manufactured in China or some other nation which offers cheap labor to companies. However, there are two particular American-based toy companies which offer toy products that are 100% made in the USA. These companies are not only special because of this, but also because they have their own unique way of manufacturing toys. The names of the companies are Green Toys and American Plastic Toys.

    Green Toys

    Green Toys is one of the first environmentally friendly toy manufacturers in the United States. Based in Sausalito, California, the company makes all their toys out of 100% recycled materials. Their favorite material to use is milk jugs which have been recycled. Sometimes they’ll use recycled yogurt cups as well.

    The benefit of using milk jugs is because of their highly dense polyethylene material, which makes it suitable for creating toys with. As a result, they’ve successfully converted about 50 million milk jugs into toys. And when the products are shipped to customers, they are shipped in a cardboard box that is also recyclable. There is no cellophane, or any other additives used. In fact, the ink used to write the shipping address is actually soy ink. Best of all, the entire manufacturing process takes place in America.

    Check Out Green Toys Here: http://amzn.to/2nHsi5d

    American Plastic Toys

    American Plastic Toys is an older American toy company that has been around since the year 1962. The two main ingredients they use to create their toys are plastic and color additives, both of which are purchased by them from other American companies. These ingredients are even approved by the Food & Drug Administration as being safe. American Plastic Toys has their own manufacturing plants in the United States where these ingredients are transformed into toys. The whole supply chain only uses American-based companies.

    Before the toys are distributed to merchants for resale purposes, American Plastic Toys puts each of their products through a safety test that is conducted by one or more independent laboratories which are also based in the United States. This ensures that the toys are safe for children to use. The only downside is that the company’s products are not sold over the internet. However, there are many popular retail stores which sell American Plastic Toys’ products, including Dollar General, Walmart, and Toys R Us.

    Check Out American Plastic Toys Here: http://amzn.to/2EoKqKo

     

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  • Why You Should Buy American Made Products

    Why You Should Buy American Made Products

    Economic power means a lot these days. The global market is in such a state that even small changes in the way a country spends can have big impacts on the economy as a whole. And economic power is only second to political power. This means we could all wake up one morning to discover that the world is an entirely different place.

    The American economy used to be one of the biggest and best in the world. However, the position has changed very much since the 1990s. Other economies like that of China and India have now overtaken the U.S.

    Despite these, there’s a lot you can do to help return the U.S economy to the place we all want it to be. You can buy American made products.

    Buying these products is more than just patriotism though. It involves so much more.

    Help revive the American manufacturing sector

    When you buy American made goods, you contribute towards reviving the country’s manufacturing sector.

    For every extra American made product you buy, you create the need to produce one more. This leads to manufacturing of more products and better overall health of the sector.

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    Provide more jobs

    Helping the manufacturing sector means that more jobs can be created not just for the present but also for the future. You can do your part to secure the future for our children and grandchildren.

    How does this happen? The more money you spend buying American made products, the more need you create for those products. This in turn creates a need for more manufacturing and eventually, more factories will open thereby providing jobs.

    Help reduce the American trade deficit

    Right now, America depends a lot on the products brought into the country from places like China and Mexico. This has created a trade deficit.

    A trade deficit occurs when you import more than you export. We are therefore spending more money on them than they are spending on our goods. Buying more American made products helps ensure that the balance is tipped in our favor.

    Help make the environment better

    Studies show that current manufacturing processes in the U.S are better for the environment.. In short, when you buy American made products, you not only help the country’s economy grow, you also help make the environment better.

    Apart from ensuring that processes good for the environment are used, you can also help reduce the carbon footprint of the goods we consume in America. Imagine how much fuel it takes to ship goods from China, all the way to the U.S. You can help reduce this.

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    Fight against human rights abuses

    More and more Americans are aware of and disapprove of the human rights abuses and exploitative practices that occur in some countries.

    You can do your part to end child labor and harsh working conditions by buying American made goods. The American labor system and laws are robust and you can rest assured that you’re not contributing to any human rights abuses.

    Will buying American made products be more expensive?

    Not necessarily. In fact, a Bloomberg article showed that the cost of goods made in China is virtually even with those made in the U.S.

    It is therefore incorrect to think that buying American products is necessarily more expensive. In fact, when buying American made products, you are guaranteed quality and a good return for your money.

    Do your part. Buy American.

     

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  • Keep America Strong – Buy American Made Products

    Keep America Strong – Buy American Made Products

    Every year, millions of manufacturing jobs are being lost in the United States. This not only means millions of families losing income, it means a loss in the country’s ability to produce goods for its own use.

    If the country is going to get back to the self-sufficient nation it once was not so long ago, then Americans need to step up and support American industry. It’s as simple as that. Buying cheap things made in China or Taiwan does not give me pride of ownership. Does it you? We can’t afford to lose the skills and technology that have made our country what it is.

    We should buy American-made because:

    • Saves or create jobs for American citizens so they can support their families and the U.S. economy.
    • The money made by American companies stays in America, thereby supporting our economy at home.
    • Products made in American are held to safety standards not found in other countries so the products you buy are safer and usually more reliable.
    • Saves on energy. Products made in other countries must be imported on cargo ships. These ships travel thousands of miles using thousands of gallons of fuel.
    • Makes our country more self-sufficient. We need to maintain our manufacturing abilities and technology so we aren’t dependent on foreign countries for everything.
    • Gives us pride in ownership.

    These are just a handful of reasons to buy American-made products. Can you think of others?

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    Some people get confused as to what products really are made in America and how to find them. The internet is a great source for locating American-made products. And be sure to check the label of any product before you buy. It’s not always possible to buy Made in the U.S.A., but each time you do you are helping your country.

    Remember, when you have a choice, please buy American! Your purchase will keep money in the U.S. and support families and communities across the country.

    There are several internet sites that do nothing but show USA made product categorized, to help you become an informed shopper. In addition, when purchasing products, spend a little extra time to look for a product which is American made. The internet has made it easier for us to search and learn about companies, and be informed buyers. Obviously, in today’s world, it is tougher and tougher to buy 100% American made products. Many electronics, which we can’t live without, are mostly not made in the USA.

    Knowing that it is not possible to buy everything American made, the best we can do to help is to look and try to buy made in the USA product, whenever it is available.

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    In recent years, people have demanded more and more for products and goods made in America in an attempt to bring the manufacturing companies back to American soil. These demands are slowly being answered as more and more manufacturing companies are finding ways to bring their manufacturing processes back to the United States while still minimizing additional business costs.

    The companies that have already taken the plunge have shown that just because they are moving back to American soil doesn’t mean they have to have additional costs and raise their prices.

    Even those companies that have revolved around automation have found a new way to create American jobs. They are doing this by coming back to American soil, opening up new manufacturing plants, and creating new jobs within the manufacturing industry. Automation and robots can only do so much and with the rise in technology there is a new need for operators and people who know how to perform maintenance on these instruments.

     

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  • Why America Should Ditch The Global Commodities Market

    Why America Should Ditch The Global Commodities Market

    During the industrial period, America was the most innovative nation on the planet. We were the creators of inventions that were unheard of and the orators of accomplishments that were made of dreams. As time progressed, we successfully maintained our innovative prowess, while the rest of the world attempted to catch up, but catch up they did. Today, we are seeing the manifestation of globalization in great abundance. Nations are exporting and importing goods of every variety from every corner of the world. A positive side effect is that the citizens of nations who actively engage in global trade often enjoy a better quality of life. America has maintained the most successful economic status for many years due in-part to the presence of a large middle class. The same is happening in foreign nations. The increased global trade is giving rise to a middle class that is more educated, more determined and willing to take advantage of every possible opportunity. So what sets America apart from the rest of the world today? The answer is very little and this is why.

    While America was the first to pioneer many of the technological advances that are commonplace today, we have not yet progressed onward. Our infrastructure is aging and the nations that were categorically labeled as “developing” possess facilities that are far superior to ours. For instance, Japan owns and operates the most technologically advanced trains on the planet. Yet no more than 65 years ago, the nation laid in absolute ruin after the Hiroshima/Nagasaki bombings. With an embattled and destitute military, the country found another way to engage in the global marketplace. Desperation does indeed breed innovation, and Japan is the physical embodiment of that philosophy. So in some aspects, the U.S. has actually fallen behind. The commodities market and its manufacturers are slowly becoming the new emerging superpower nations of the world.

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    The lax labor laws and inexpensive human capital of countries like China, Thailand, India and Taiwan have all attracted U.S. based businesses offshore. It’s no secret that they can manufacture a product at a fraction of the cost when compared to that of an American manufacturer. To compound the issue, the standard of living in these countries is typically lower, which translates into nominal wages. In contrast, the US maintains stringent labor laws such as a national minimum wage and in some cases, employee advocacy organizations like the various unions operating within the automotive field contribute to inflated costs. In addition, the United States maintains a significantly higher standard of living (when compared to the rest of the world) and most employers incur additional costs related to employee wellness such as health-care. All these factors inflate operating costs and reduce the profit margins of American businesses, putting them at a significant disadvantage to compete with foreign-based business.

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    There are global challenges that are yet to be solved. Where will our next commercial fuel source come from? Why not concentrate our efforts instead on finding new creative solutions to problems that plague us as a nation such upgrading our decrepit infrastructure? If desperation breeds innovation, now is our time to innovate the same way Japan did after the war. Let the world’s emerging nations manufacture commodities. America is at the point of desperation and education is one path toward innovation that is reminiscent of the industrial period. It would be unwise to completely abandon our roots and rely only on service-based business modeling. Just as diversification minimizes excessive risk in an investment portfolio, the United States should wisely employ the same strategies when engaging in global trade. Reallocating some of our resources away from saturated, low-priced commodity markets and redirecting them to cutting edge research and development will restore America’s competitive edge. The strength and future of America is not based on manufacturing only, but on our ability to innovate, just as we did during the industrial period. Let’s concentrate our efforts toward innovation, and usher the globe into a new era.

     

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  • America Made Companies That Benefit America

    America Made Companies That Benefit America

    How does buying American made products benefit Americans?

    American made products benefit all Americans because they are products made within the boundaries of our country; they are made by other Americans, employed by different companies who hire Americans for labor, which in turn means good paying jobs for Americans – something we are in desperate need of. Small businesses make up a greater percentage of companies in America than any other sector, and businesses should be able to keep American employees without having to struggle. Many small businesses have moved their jobs and production overseas because of the rising costs, and greater economic strain of keeping them in America. There are some who have stayed despite the economic turmoil because of foresight. Small businesses employ a large portion of this country, manufacture, and produce many of our countries services – the more the better. It is getting harder and harder to keep it that way, you see, when big businesses start outsourcing to India, China, and everywhere else their cost of production and labor go way down. When outsourcing to get cheaper labor and cheaper material, you in turn, get a cheaper unsafe product; a product that not only doesn’t last the test of time, but can be dangerous.

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    There has been a growing trend of companies moving production back to the United States called “re-shoring”. Many big and some small companies have begun to move jobs back to America after having outsourced thousands of jobs to China, Russia, India and Mexico over the last few decades.

    The problem with these companies is that they did outsource overseas, and are only now trying to bring their manufacturing jobs back into America. With a high unemployment rate in many parts of the country, Americans desperately need jobs. Thankfully, there are many small businesses who never outsourced their jobs overseas to help America, even though they struggled to do it, they knew, in the long run it would benefit America.

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    The national goal for America should be to bring back at least 20 percent of manufacturing jobs to America, about double the percentage today. There are many different paths, and barriers to bringing jobs back, and reasons they were sent abroad in the first place. The main reason would be to slash costs, and create products at a much cheaper cost to the company, and in so doing, you hurt America.

    The benefit of keeping Americans employed is that they will inevitably put their money back into America by buying goods. It is good news for all Americans, especially the middle class that companies are moving jobs back to America “re-shoring.” The harsh reality is most of the companies never should have outsourced in the first place; because we all know that those jobs were once filled by someone in America who suddenly found their job went overseas.

     

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  • Why Buying US Made Products Helps YOU In The Long Run

    Why Buying US Made Products Helps YOU In The Long Run

    Downsizing and sending of manufacturing jobs оff-ѕhоrе hаѕ resulted in a rebirth of small business manufacturing and selling of US-Made рrоduсtѕ. Thіѕ аrtісlе presents four reasons why consumers should purchase US Made Products instead of the “lower соѕt” imported counterparts.

    Create/retain American Jobs

    Are you concerned about the high unemployment rate? Then do something about it and buy US Made Products. Your purchase of a US Made Product allows the US manufacturer to hire or retain a US worker. The purchase also provides an incentive to the manufacturer to increase production or create new products – and hire more employees. Approximately 75% of the retail price is returned to US-based employees; and State and Federal taxes are paid on the retail, wholesale, and manufacturing phases of the sale.

    In contrast, the purchase of a $100 foreign-made product has less or no impact on American jobs and the American economy. If the retailer is a brісk-аnd-mоrtаr ѕtоrе, аррrоxіmаtеlу $25 goes to the retailer, who also pays state and federal taxes. But if the retailer is an off-shore іntеrnеt ѕtоrе, no раrt оf the purchase price is returned to US employees, and no retailer taxes are collected. If the dіѕtrіbutоr іѕ US-bаѕеd, аррrоxіmаtеlу $6 of the $100 purchase price is returned to a US-based employee; and state and federal taxes are paid.

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    Lower True Cost

    Have you ever wondered why that new imported toy you bought for Christmas is broken in less than 3 months? The truth is, it was designed with the least amount of plastic or metal possible, and the sooner it breaks, the sooner you will buy a new one. Paraphrasing PT Barnum, There is a new American Sucker Born Every Minute. Reputation mеаnѕ lіttlе to a mаnufасturеr when he knows there are enough new customers to replace the disgruntled customers.

    Domestic manufacturers, hоwеvеr, must be more conscious of their reputation, or take the chance оf lоѕіng thеіr market to imports. They design their products to last until уоu wаnt tо rерlасе іt; not when they want it to break.

    So, which has a higher true cost – a $3 toy that breaks in 3 months (and is probably unrepairable), or a $10 toy that lasts for years (or until it is lost)? Go figure..

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    Product Safety

    If you have any doubt about the safety problems encountered with imported merchandise, take a look at a recent list of toy recalls. Most are imported. Let’s take a look at why there are so many product recalls of foreign-made products:

    • The manufacturer has the primary responsibility for product safety plans and verification.
    • As a result of limited manpower, verification of compliance to the safety plan is on a spot-check basis.
    • Fines for safety violations are not significant compared to profits that can be made by employing a limited or non-existent Quality Assurance Department at the manufacturing facility.
    • Damage to the reputation of the off-shore manufacturer as a result of a product safety recall is minimal, and any damage to the reputation of the importer is also minimal due to a virtually unlimited number of American consumers that are unaware of the recall.
    • A foreign manufacturing facility closed as result of numerous safety violations can be replaced with another facility with a minimal impact to the profits of the Corporate Headquarters.

    In contrast, as stated previously, a US-based manufacturer has a higher incentive to satisfy the consumer. As a result, there is most likely more emphasis on product safety

     

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  • What Is Happening in the US Advanced Manufacturing Sector?

    What Is Happening in the US Advanced Manufacturing Sector?

    The advanced manufacturing industry is growing more and more mainly due to business expansion through organic growth and the modernization of manufacturing technologies. It sounds really good in and of itself, but a closer look reveals a pretty big issue, and action needs to be taken now if we want to see our manufacturing sector still performing at a gain ten years from now.

    With manufacturing jobs being more and more in demand, it is predicted that over the next ten years 3.5 million positions will be available in the manufacturing field, of which 2 million positions will remain unfilled because of skilled labor shortage. The math in that says that this will lead to a loss of $32 billion that could’ve otherwise go back into our economy, but will go instead into finding skilled workers for those 2 million unfilled manufacturing jobs.

    So why exactly will we be facing such a major skilled labor shortage? There are a couple of factors that will lead to this situation. One is the movement of experienced workers which causes the loss of embedded knowledge. Another factor is the shortness of workers that have certified STEM skills (science, technology, engineering and mathematics skills). A third factor is represented by the decline of technical education and vocational training in schools.

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    However, the main two reasons why the future of the advanced manufacturing workforce raises concern are economic expansion due to natural business growth, and the baby boomer retirements that will likely leave somewhere around 2.7 million open jobs.

    To be able to grasp the importance of the impact this will have on our country as a whole, here are a couple of facts:

    Approximately one of seven private sector jobs in the US directly depends on the local manufacturing base;

    Every 100 jobs in the manufacturing sector creates an extra 250 jobs in other fields;

    One dollar spent in manufacturing adds $1.37 to the country’s economy;

    The lack or decline of a US-based manufacturing workforce is a matter of national security.

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    We need highly skilled, trained people to fill all the jobs that will be available as a result of workforce retirements and organic growth in business. And we need to be able to find that skilled and up to the challenge workforce fast, without manufacturing companies having to lose over 10% of their net earnings looking for that workforce, and without manufacturing companies having to lose precious time and resources training people that may very well end up leaving the job because they didn’t know what they were getting into from the get-go.

    Solutions such as reintroducing vocational training in schools, and creating organizations that help veterans and transitioning Service members get certified for jobs in advanced manufacturing are a very promising start to avoiding a decline in the US advanced manufacturing sector, but it’s up to every individual to do an effort in order to raise awareness on the issue, and to encourage the development of more solutions.

     

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  • The 5 Top Reasons Why You Should Buy American Made Products

    The 5 Top Reasons Why You Should Buy American Made Products

    “Made in the USA” products are becoming more and mоrе important each day to consumers in оur соuntrу. Whеn a recession hits this seems to increasingly be the case as people revert back to mаnufасturіng аѕ a stimulus for job growth. This is because Manufacturing is a large and vital part оf thе есоnоmіеѕ of most countries.  It all starts with taking natural resources and rеfіnіng them into man made materials that can be converted into tangible gооdѕ fоr consumers to buy and соnѕumе.

    Mаnufасturіng is the primary sector that feeds all the remaining sectors. It dереndѕ оn, аnd feeds other businesses that provide value-added services.  All these businesses fоѕtеr орроrtunіtіеѕ for professional services such as legal, accounting, technology and соnѕultіng. So whеn a product is Made in the USA, it is only natural that it will enrich growth as vаluе іѕ created through the supply chain to the consumer. This growth will eventually сrеаtе opportunities where jobs can be created throughout thе ѕuррlу chain and in all sectors of the economy.

    1. Corporate behavior beyond products sold matters. Whіlе American-made products certainly impact buying сhоісе, thе bеhаvіоr of a company at the corporate level seems to have just as much of an іnfluеnсе. In fact, Consumers Reports says that 92% of individuals surveyed ѕаіd they are more likely to buy from a company that gіvеѕ back tо the local community. Other factors significantly impacting consumer buуіng decision include how well workers are trеаtеd (90%), the environmental practices of the company (79%), whеthеr thе corporate aspect of the company is foreign or American (78%), and whеthеr or nоt a manufacturing facility exists in the individual’s state (75%).
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    3. Quality still matters. Those сhооѕіng tо buy American often do so because of the quality of the product, аnd mаnу bеlіеvе American-made products are often better quality than fоrеіgn-mаdе. Tаkе сlоthіng for example. Consumers Reports says 61% of survey respondents believe American-made сlоthіng is higher quality than foreign-made сlоthіng. Aѕ Amеrісаn products increase in quality, so too does the loyalty of соnѕumеrѕ wanting tо not just buy American-made but quality as well.
    4. American-made products keep jobs in America. Whіlе U.S. manufacturing continues to ѕtrugglе, Time rероrtѕ that its growth currently outpaces that of other advanced nations. Thіѕ means the number of American manufacturing jobs is increasing and wіll continue doing so providing companies see the big picture benefits оf рuttіng down and/or keeping roots on Amеrісаn soil. On thе other side of the coin, American workers must rise to the challenge and prepare a workforce аblе tо hаndlе the technical skills required in the future of manufacturing.
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    6. Outsourced Manufacturing Plаntѕ Rаrеlу Return to the US. One less considered fасtоr is thаt оnсе a product has been outsourced to a foreign country, in too many cases it will never again be manufactured іn the US. That аvеnuе of potential business has vаnіѕhеd. This must be avoided at all costs in order to strengthen our economic standing domestically, while еlіmіnаtіng our reliance on foreign goods.
    7. Foreign product safety standards are less еxtеnѕіvе thаn those here in the USA. For example, poisonous levels of lead аrе іn millions of items shipped to the USA. When you buy goods made in thе USA, you саn be confident that American consumer protection laws and safety standards are upheld іn оrdеr tо protect you and your family.

     

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  • Concerned About The Environment? Then Here’s Why You Should Buy Local

    Concerned About The Environment? Then Here’s Why You Should Buy Local

    We all know that buying products from local businesses is healthier for us, as consumers, and extra beneficial for the economy of any community, big or small. Buying locally sourced food should also be a priority for those who are eco-conscious and wish to make an effort in order to minimize their carbon footprint. And while there are quite a few reasons why our buying locally as much as possible impacts the environment in a positive way, you can continue reading about some of the more important of those reasons in what follows.

    Transportation

    With trillions of dollars spent on importing products in the US every year, it’s not only the average consumer’s general health and wellbeing that is at stake, but also the health and wellbeing of our environment. Product transportation via aircraft is a great greenhouse-gas emissions culprit, transportation via shipping produces emissions of over one billion metric tons of carbon dioxide every year, while product transportation via trucks and trains are to blame for over a quarter of smog-causing pollution. Local and sustainable agriculture decreases the need for transportation, reducing the environmental stress caused by the food market globalization.

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    Greenhouse Gasses

    Food that’s being produced at industrial levels will always create greenhouse gasses, simply because you can’t make industrial supplies of products at a profit without using fossil fuels. However, the area in industrial farming responsible for the biggest consumption of fossil fuels is not transportation or equipment, but chemicals, both pesticides and fertilizers. Local farmers who work their small lands will always do their best to maintain and sustain the surrounding natural habitat, will keep to a pre-designed crop rotation schedule, and will be mindful and proactive in what concerns water usage and carbon sequestration.

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    Recycling

    Processing, transportation, and chemicals are not the only big reasons why this international unsustainable food system should be replaced by an environmentally-friendly local food system. With the materials used for food packaging being some of the least recycled materials in the US, it’s easy to understand why buying produce from local farmers who make a conscious effort towards minimizing storage and transportation packaging is the right choice to make.

    Better health, financial wellness, and a balanced environment are all concerns of the modern man, and by putting our efforts together, it would be reasonable for us to be bullish on the betterment of our ecosystem. Small, individual steps towards this eco-oriented goal will diminish the stress pollution exerts on our environment, and buying local is certainly one of those steps.

     

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  • Bring the jobs back home: Why It Is Important to Rebuild Manufacturing

    Bring the jobs back home: Why It Is Important to Rebuild Manufacturing

    Careful studies have shown that many products can be profitably produced in the U.S. by a well-paid workforce because the production processes involved uses sophisticated machinery that assures high levels of output for each hour of labor.

    While capital-intensive manufacturing typically takes place in workplaces that employ far fewer people than the factories of the 1950s, a vibrant manufacturing sector can be critical to the health of both urban and rural communities because of the unique linkages of manufacturing work.

    There is now a close connection between advanced manufacturing processes and the research and development efforts that feed into these processes, so that if the United States lacks manufacturing capacity for certain products, it will also ultimately lose the research and development capacity supporting those products as well. It follows that, for the United States to continue pioneering new industries, the nation needs a strong manufacturing sector.

    Manufacturing jobs generally pay better than other jobs available to those without a college degree, and they are critical to the economic vitality of many states in the Midwest and Southeast.

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    There are two distinct ways in which twenty-first-century manufacturing differs radically from mid-twentieth century manufacturing. First, contemporary manufacturing is highly dependent on cutting-edge science and technology. Whether it is a question of using newly developed composite materials, relying on the latest advances in robotics, or incorporating other recently developed technologies, manufacturing now relies heavily on the research being done in government-funded laboratories. This is true of the latest models of smart phones, solar panels, robots, wind turbines, advanced batteries, and pharmaceuticals, but it is also increasingly true of airplanes, automobiles, machine tools, and even more mundane products such as textiles and building materials.

    The second key change in manufacturing is that it is now a “team sport,” in that manufacturing firms in and across sectors are much more mutually dependent. Back in the 1920s, for example, Henry Ford sought to excel in manufacturing as an individual sport. He built the River Rouge complex with its own electrical power plant, its own steel mill, and its own glassmaking facility, so that he could build cars without having to purchase any inputs from other firms. Today, however, that strategy would make no sense. Firms that specialize in making glass or steel or carburetors or transmissions or seating assemblies can supply those components more efficiently and at lower cost than can an automobile company. This is true because specialization allows a firm to make substantial investments in the technical knowledge and the skilled workers that are required to keep improving the specific product that it makes. The consequence is that today, as much as 70 percent to 80 percent of the value added of a typical automobile is purchased by the automobile manufacturer from suppliers.

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    Both research-intensive innovation and specialized, disaggregated manufacturing work in the same direction. In contemporary manufacturing, an individual firm is highly dependent not only on outside scientists and engineers, but also on other firms that are buyers or suppliers or collaborators in producing particular things.

    This dependence on others can create a serious problem, however. A firm, whether big or small, might have a great idea about a new product, but it cannot move forward until it finds the appropriate partners for both developing and making the product. Finding appropriate partners, in turn, is difficult and time-consuming, and some potential partners might exaggerate their skills, or otherwise prove to be unreliable or untrustworthy. And even when one has found good partners, uncertainty remains.

    With advanced manufacturing, figuring out how to mass-produce a complex product is often a major challenge, and it can be difficult to find a labor force with the skills needed for production. Even if these hurdles can be overcome, there is still the considerable risk that the new product will not find a market, either because it is rejected by regulators or by consumers.

     

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