This is the part that blows my mind. People seem to think the US is incapable of and does no manufacturing. It is the second largest manufacturer[1], and has a capacity about 65% of what China does. Which is 350% of the next largest manufacturing country.
What they stopped manufacturing was menial and low-end product; because it's not price-effective to have 100 Americans sit on an assembly line and solder SMT components for $7-18/hr. Instead, those potential workers pivoted into service jobs and office work.
There are synergies to having the high end stuff and the low end stuff in the same place. The story of IBM developing System 360 mentions the benefit from the ladies who wound the wire core memory and the guys who designed the computer on the same campus in New York. We gave that up when we outsourced the “menial” stuff abroad.
The point is that high end and low end manufacturing are intimately related. You can’t outsource your low end manufacturing without your high end eventually collapsing.
The U.S. still manufactures high end products in some fields. But in many areas we have lost the high end as well as the low end. E.g. we can’t compete with the Chinese in electric cars.
China at this point is hard in automation, beyond anything the US has. China is well past the peak of sweatshops.
As someone in the manufacturing space in the US, the biggest issue we have in the US is that manufacturing continues to die. Any manufacturing we have left is the old guard dying off. It comes from a range of issues from companies refusing to invest in younger employees, to the cost of real estate (both buy or rent) for commercial properties being absurd..
Incorrect. To reiterate, the closest near competitor below it does ~30% what the US does; and it only goes down from there. And, compared to China, they are doing 65% of their manufacturing capacity at 25% of their population. The US is doing fine.
The fact that China is diversified beyond low end manufacturing just shows that they have incentive + economic impetus to expand that field; and hardly disproves what I stated or shows any trend of US manufacturing "dying off".
This can only be correct in spreadsheets. In the material reality China outproduces the US by orders of magnitude. For example, China produces ten times more steel, 3 times more cars and in shipbuilding China manufactures literarily thousands of times more ships than the US.
Bingo US produces about ~1/2 of PRC by VALUE ADD not gross output.
And it's not all high value goods. US produces magnitude(s) less than PRC in nearly all industrial sectors, i.e somewhere between single digit times less to 100s less. Some of it might not matter, like trinkets, some of it does, like 500x more shipbuilding by tonnage. Of the magnitude less that US produces, some legit high value like aviation, some are spreadsheet value, i.e. US car worth 3x than a comparable Chinese car. For shipbuilding, PRC produces like 50m DWT per year, aka MORE than US total WW2 shipbuilding, all 4 years, and generate about 150b revenue. US produces 0.3m tons (round up), and generate about 40b.
A ton of US ship, even navy isn't worth except 50x premium over a PRC ton except in spread sheets. That 50x premium is rent/capture, it's what prevents US from actually industrializing vs spreadsheet industrializing. TLDR except in a some high value sectors, US is getting absolutely mogged even per capita in gross output.
What they stopped manufacturing was menial and low-end product; because it's not price-effective to have 100 Americans sit on an assembly line and solder SMT components for $7-18/hr. Instead, those potential workers pivoted into service jobs and office work.
1 - https://www.safeguardglobal.com/resources/blog/top-10-manufa...