US Manufacturing Industry, Such As Clothing, Textiles And So On, Is Not Listed Here.

World famous machinery and equipment manufacturers

The Caterpillar Inc recently decided to move the production line of small excavators from Japan to Georgia, and to withdraw a factory in London to Indiana.

Ford motor has withdrawn part of its jobs from China, Japan and Mexico, and plans to invest $160 billion in the United States by 2015 and create 12000 jobs.

Intel's continuous production and R & D in the United States fell heavily, and its investment amounted to US $680 billion between 2002 and 2010.

75% of the company's products will be produced in the United States, leading to 44000 locally paid jobs, but 80% of the profits will come from abroad.

In the next 5 years, companies like Intel and IBM plan to invest 4 billion 400 million US dollars to build semiconductor research and development centers in New York to study the next generation chip technology.

The investment is expected to bring 6900 jobs.

From that year to the present

The manufacturing industry in the United States is changing quietly.

With the improvement of the economic environment, the US manufacturing industry is looking for new breakthroughs in the global manufacturing industry, such as labor costs and pportation costs.

The "bright spot" in recovery

The road of economic recovery in the United States is uneven, but the performance of manufacturing industry is commendable.

The automobile industry, once proud and symbolic of the US manufacturing industry, has been badly hit in the financial crisis.

After some "scrape and heal", it is now extremely rare.

General Motors has returned to the throne of the world's largest auto manufacturer. Chrysler sales in the US market grew faster than other competitors. Ford is planning to invest billions of dollars in the us to invest and build factories.

The return of the "three giants" of the automobile industry is a good commentary on the recovery of manufacturing in the US.

As of April, the US manufacturing activity expanded for thirty-third consecutive months, and new orders, output and employment rose exponentially, according to the American Association for supply management.

In the 18 manufacturing industries, 16 were expanding in that month.

The private sector in the United States has also increased employment for 4 million 250 thousand consecutive months in 26 months.

About 500 thousand of them come from manufacturing.

Since the US economy was out of recession in 2009, manufacturing output in the United States has increased to varying degrees in terms of output, production efficiency and average hourly wage for workers. Manufacturing accounts for 26% of total economic growth, and output growth is more than two times the overall GDP growth rate.

The latest US Treasury figures show that the manufacturing sector accounts for about 12% of GDP in the United States, accounting for nearly 70% of R & D spending in the US, and has absorbed 70% of the US workforce, contributing 60% to exports.

The R & D and innovation activities of the manufacturing industry not only bring continuous growth momentum to the enterprises, but also enhance the vitality of the surrounding areas and produce a good radiation effect.

The cornerstone of Industrial Development

In the middle of twentieth Century, manufacturing industries in Japan, China, South Korea and India rose, and the United States went to the process of industrialization. The labor force moved rapidly to the third industry, and the manufacturing industry was pferred to the newly industrialized countries.

This has made the first ten years of this century the ten year in which the manufacturing industry in the United States has been shrinking.

Employment and output are also declining. The total employment population has dropped from 40% in the peak period in 1979 to about 11 million 800 thousand now. The proportion of manufacturing industry in GDP has dropped from 13.25% in 2000 to 8.9% in 2009. The proportion of the total employed population decreased from 40% in 2000 to 8.9% in 2009.

In the US, automobiles, steel, consumer electronics and other industrial industries with strong advantages have been faced with strong competition from China and other emerging markets. However, according to Pedersen Jacob, an expert in the International Economic Research Institute of the United States, such a pattern does not mean that the United States has lost the competitiveness of manufacturing industry.

Why? "Industrial Hollowing" is not only the elimination of low-end manufacturing industry, but also reflects the shift of the us to high-end industries and the improvement of labor productivity in manufacturing industry.

This choice also helps the United States retain strong international competitiveness in the fields of machinery, chemical engineering and pportation equipment manufacturing.

According to the World Trade Organization data, US exports in 2010 were second only to China, higher than Germany and Japan.

Exports of machinery, chemical engineering and pportation equipment accounted for half of the three major industries.

The "bottom" of American manufacturing is still thick, but the excessive dependence on the financial and service industries has made the US suffer in the financial crisis.

Returning to the real economy and re industrialization has become an important strategy for us president Obama to rebuild the competitive advantage of the United States.

This strategy is especially important in the year of election.

Employment and other economic issues related to the livelihood of the people in this particular year often become the most important part of the hearts and minds of the people.

Obama did not want to "condone" enterprises to send precious jobs to foreign countries. He did not want the us to be famous for financial speculation and heavy debts. Instead, he wanted to revitalize manufacturing as an important way to increase employment and expand exports, and strive to open up a global market for "made in the United States".

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From this year's state of the Union address to the new fiscal year budget, and then to many campaign speeches, Obama appealed on many occasions to make the manufacturing industry of the United States an important support for sustained economic development, and intend to give more support to manufacturing enterprises from tax revenue to capital investment.

For example, he wants Congress to terminate tax breaks for businesses that are moving out of the industry and give tax incentives to 20% of businesses invested and recruited in the US.

A series of policies to promote exports have also been announced. As the official export credit agency of the United States, the import and export bank will carry out new projects to provide credit for smaller export enterprises, and give "export promotion cabinet" greater powers to coordinate cross departmental actions.

In the 2013 fiscal year budget plan, the US government will invest $1 billion to establish a manufacturing innovation network composed of 15 regional manufacturing innovation research institutes, establish cooperative relations between schools and enterprises, stimulate more innovative ideas, and constantly introduce new technologies.

From "outsourcing" to "reflux"

A study shows that in recent years, the gap between domestic and foreign labor costs is shrinking.

For this reason, many American enterprises re-examine their business strategy and withdraw their factories abroad.

Taking China and the United States as an example, from 2005 to 2010, the wages of Chinese manufacturing industry increased by an average of 19% per year, while the growth rate of production efficiency was only half of that, resulting in an increase in unit labor costs.

From the mid 2009 to the 2011, the average hourly wage of American manufacturing workers decreased year by year, but the productivity was higher than that of Chinese workers.

The implicit cost of foreign production of American enterprises is also one of the factors of "reflux".

Setting up factories overseas also faces problems such as decentralization of management, coordination of cost and consumption between local and overseas departments.

In addition, the supply chain is too long, which also leads to an increase in operational risk.

These questions are all considered.

A survey of 287 US companies shows that 61% of them consider building factories closer to the target market.

A joint survey by Boston consulting, Accenture and Boots Company Plc found that the attractiveness of the United States as a producer of manufacturing has increased.

According to the analysis, from the perspective of the "total business cost" of other factors, such as the productivity of the US workers, pportation and supply chain risks, the production in some industries in the United States is as economical as that in other countries.

How far can "recirculation" go?

In the first ten years of twenty-first Century, there was a loss of jobs in almost all manufacturing industries in the United States, but the "outflow" was selective.

A report recently released by the Brookings Institution of the US think tank shows that highly paid industries, most of which are also capital and technology intensive high-yielding industries, and relatively less important jobs in the location relative to product value, are less likely to lose jobs.

Most of the losses were low end manufacturing industries such as textiles, clothing, leather and so on.

In the oil and coal products, chemical industry and computer and electronic products industries, the top three most American manufacturing jobs are the most remuneration industries.

In recent years, the "reflux" of manufacturing industry is also divided into industries.

From the end of 2009 to the second half of 2011, more than half of the manufacturing industry in the United States increased their local jobs, mostly concentrated in high paying jobs and more productive industries, including pportation equipment manufacturing and computer and electronic products, but the posts in clothing and textile industries were still negative growth, indicating that the trend of "outflow" in some industries may continue and the lost jobs will not return to the mainland.

Cost, especially labor cost, is a major factor that restricts the return of manufacturing in the US.

Although the labor costs of developing countries show a gradual upward trend with the increase of per capita income, it is still difficult for developed countries to gain competitive advantage in wage costs, which to a considerable extent impedes the return of labor-intensive manufacturing industries.

With the development of globalization, the United States has shifted the manufacturing sector overseas, and the local manufacturing industry is developing towards capital intensive and technology intensive.

In view of the fact that the proportion of the manufacturing sector in the total economy and the employment population is still relatively low, the Obama administration's "abacus", which aims to boost employment significantly by revitalizing the manufacturing sector, is likely to be put on the big question mark.

The significance of consolidating the manufacturing industry in the United States is not the increase of jobs, but the process of breaking the old and building new ones and seizing the high-end industries.

Brookings's report points out that the number of manufacturing jobs in recent two years is far from enough to offset the loss of jobs since 2000.

At the current rate, the United States will not be able to recover the jobs lost between 2000 and 2009 by 2037.

The US Department of Commerce's latest report shows that compared with non manufacturing workers, American manufacturing workers are 17% higher in wages and benefits such as medical insurance and retirement cash provided by enterprises.

Manufacturing workers not only have higher education qualifications, but also have more scientific and technological content in manufacturing jobs. On average, 1 of the 3 manufacturing workers with university qualifications are closely related to their professional knowledge in science, technology, engineering and mathematics.

The importance of manufacturing recovery is not only a sign of economic growth, but also a quality of jobs.

In the election year, Obama's policy focused on expanding exports made in the United States and returning more jobs back to the mainland.

But analysts believe the US economy is in a cyclical recovery stage, and the recovery of manufacturing is more likely to benefit from the improvement of the overall economic environment.

It is difficult to judge the extent to which this policy can be implemented and the effect of promoting the manufacturing industry is still hard to decide.

Under the background of global integration, whether the US manufacturing industry can continue to maintain "bright" will depend largely on the economic fundamentals of the United States and the world.