America Underestimates the Difficulty of Bringing Manufacturing Back
5 months ago
- #manufacturing
- #economy
- #tariffs
- President announced new tariffs ranging from 10% to 49% to bring manufacturing back to the US.
- Tariffs may fail to bring manufacturing back and could make America poorer.
- Author has 15 years of manufacturing experience in the US and China.
- 14 reasons why tariffs won't work include insufficient tariff rates, weak supply chains, lack of knowhow, and higher effective labor costs in the US.
- US lacks industrial supply chains for many products, unlike consumer supply chains.
- China's workforce is more efficient, skilled, and has a better work ethic compared to the US.
- US infrastructure like electricity and roads is insufficient for large-scale manufacturing.
- Building factories in the US takes years, and tariffs create uncertainty for investors.
- Tariffs are complex, poorly communicated, and change frequently, freezing business activity.
- Americans may dislike the harsh realities of manufacturing jobs.
- There aren't enough skilled workers or managers in the US to revive manufacturing.
- Automation won't solve labor cost issues as China leads in industrial robot installation.
- US legal environment is litigious, discouraging manufacturing investments.
- Tariff enforcement will be uneven, favoring foreign companies over US ones.
- Past tariffs shifted manufacturing to Vietnam instead of bringing jobs back to the US.
- Tariffs are structured poorly, taxing components and machinery needed for US manufacturing.
- Policy should focus on high-value manufacturing and fixing social issues like education and health.
- Recommendations include gradual tariff implementation, tax reforms, and manufacturing visas for knowhow.
- Author predicts tariffs will lead to recession and US exclusion from globalization.
- Manufacturing is needed for national strength, innovation, and utilizing spatial intelligence.