Production in U.S. is far from dying
WASHINGTON — It seems like the country that used to make everything is on the brink of making nothing.
In January, 207,000 U.S. manufacturing jobs vanished in the largest one-month drop since October 1982. Factory activity is hovering at a 28-year low. Even before the recession, plants were hemorrhaging work to foreign competitors with cheap labor. And some companies were moving production overseas.
But manufacturing in the United States isn't dead or even dying. It's moving upscale, following the biggest profits and becoming more efficient, just like Henry Ford did when he created the assembly line to make the Model T.
The U.S. by far remains the world's leading manufacturer by value of goods produced. It hit a record $1.6 trillion in 2007 — nearly double the $811 billion in 1987. For every $1 of value produced in China's factories, America generates $2.50.
So what's made in the USA these days?
The U.S. sold more than $200 billion worth of aircraft, missiles and space-related equipment in 2007. And $80 billion worth of autos and auto parts. Deere & Co., best known for its bright green and yellow tractors, sold $16.5 billion worth of farming equipment last year, much of it to the rest of the world. Then there's energy products like gas turbines for power plants made by General Electric, computer chips from Intel and fighter jets from Lockheed Martin. Household names like GE, General Motors, IBM, Boeing, and Hewlett-Packard are among the largest manufacturers by revenue.
Several trends have emerged over the decades:
America makes things that other countries can't. Today, "Made in USA" is more likely to be stamped on heavy equipment or the circuits that go inside products other than the TVs, toys, clothes and other items found on store shelves.
U.S. companies have shifted toward high-end manufacturing as the production of low-value goods moves overseas. This has resulted in lower prices for shoppers and higher profits for companies.
Once this recession runs its course, surviving manufacturers will emerge more efficient and profitable, economists say. More valuable products will be made using fewer people. Products will be made where labor and other costs are cheaper. And manufacturers will focus on the most lucrative products.About 12.7 million Americans, or 8 percent of the labor force, still held manufacturing jobs as of last month. Fifty years ago, 14.6 million people, or 28 percent of all workers, toiled in factories. The numbers — though painful to those who lost jobs — show how companies are making more with less.Still, the perception of decline is likely to grow as factories and jobs vanish, and imports rise for most goods we buy at stores.Thirty years ago, U.S. producers made 80 percent of what the country consumed, according to the Manufacturers Alliance/MAPI, an industry trade group. Now it's about 65 percent.American factories still provide much of the processed food that Americans buy, everything from frozen fish sticks to cans of beer. And U.S. companies make a considerable share of the personal hygiene products sold in pharmacies.Some U.S.-made products are hiding in plain sight.Berner International Corp., based outside Pittsburgh, doesn't make the clothes, dishes or sponges sold at Wal-Mart, but its products hang above shoppers' heads as soon they come through the sliding doors.The company's 60 employees make air curtains — rectangular blowers mounted to the ceiling that keep out hot or chilly air, insects and dust while keeping in A/C and heat.Chief executive Georgia Berner keeps her company in the United States because she relies on her staff's deep knowledge of air blowers, which are custom made for clients using metal plates, fans, motors and electronic parts assembled at the company's 60,000-square-foot factory. Each box requires specific voltages and sizing, she says."I have a crew here (with) much of the product knowledge in (their) heads," she said.Judy Horkman, 47, was devastated when she was laid off after 13 years of attaching handles to sauté pans on the Mirro Cookware plant assembly line. But two years ago, Horkman took a job making industrial light fixtures for office buildings and warehouses at Orion Energy Systems Inc.Horkman said she takes tremendous pride in her work. When she assembled cookware she imagined that she would personally use the final product."Regardless of my product I'd put my heart into it. I put my hard work, my dedication, my quality into whatever I make," she said. "I just imagine someone out there really needs this, and I think about how good I'd want it to be if it was for me."
