Manufacturing Defined- Making Things!

March 17, 2014

We were pleased to be quoted in the weekend edition of the Wall Street Journal in an article by Tim Aeppel titled Feds Try Redefining Manufacturing.

Our initial post on Factoryless Goods Producers was cited in the article.

It's like manufacturing, except without us actually making anything.

It’s like manufacturing, except without us actually making anything.

The issue is that federal agencies are trying to redefine “Manufacturing” to recognize “Factoryless Goods Producers” as Manufacturers.

If you don’t actually make something- how can you be considered a Manufacturer?

If you contract to have some company in a foreign country make your product, why should you be credited as manufacturer and why should US get balance of trade credit for being the manufacturer?

We think that definitions ought to be honest.

Manufacturing is actually making things. not designing them, ordering them, or buying them from another company.

We think that manufacturing ought to be credited where the making things actually happens. Apple designs and sells some really cool electronics- but the manufacturing is not done in the US.

Why would we want to let US companies claim to be manufacturers when in fact they don’t make the products in the first place, and often have them made overseas where the operations are not governed by US legal protections for labor rules,  safety, environment?

Deceiving consumers and the voters with fraudulent numbers is what this about. It’s not about reacting to globalization. It is about counting the hollowing out of US Manufacturing as actually manufacturing.

  • Yet no new employees are hired.
  • No new assembly lines or factories are built.
  • No new payroll taxes are being paid.

Manufacturing is about making things.

If you don’t actually make it, you aren’t a manufacturer.

Sorry if that offends you.

You may be a great designer. Broker. Outsourcer. Wholesaler, Distributor. Whatever.

But you aren’t a manufacturer unless you actually make things.

Read Tim Aeppel’s WSJ Story

What is manufacturing?

He’s Lying Photo Credit


GE CEO: Manufacturing Jobs Should Comprise 20% of US Employment

October 28, 2009

Actions always speak louder than words.

 

Made in China. Protect the environment.

Made in China. Protect the environment.

Here’s what GE’s CEO, Jeffrey Immelt,  told the Detroit Press Club back in June:

“We would do much better to observe the example of China. they’ve been growing fast because they invest in technology and they make things.  They have no intention of letting up in manufacturing in order to evolve into a service economy.”

This is the same GE that closed lighting manufacturing plants here in Ohio.

Who decided to close our manufacturing plants here in Ohio, Jeff?

Who decided not to reinvest money here in Ohio to “make things?”

Who decided that absorbing say, $500 000 000  in restructuring costs to close a small number of plants is better than spending,  $40-45 000 000 in reinvestment to make new CFL technology light bulbs here in the USA?

Where do you suppose US workers might get those “green manufacturing jobs” if you’re not building the factories to make light bulbs here in the US?

So before you reach for that  that “green” CFL lightbulb with the GE logo on it, remember the hypocrisy of  Jeffrey Immelt, “20 % of US jobs should be manufacturing jobs,” while closing plants and failing to reinvest to make these “green products” here in the US. 

When you see that ad on TV from GE to “Buy Green,” what they are really saying is “BUY FROM CHINA.”

Note to Jeff Immelt:  US labor productivity is among the highest in the world. Our factories are subject to stringent regulations to assure that we protect the environment. Why would you not want to make this staple “green” product here?

Just wondering.

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