One need only look at the past several decades to see that while the United States remains one of the world’s biggest manufacturing powerhouses, we’ve fallen behind a fair bit.
Thirty years ago, one by one, manufacturers who dealt in bulk production of things like electronics and toys made the critical decision to reconfigure their operations in places like China’s Pearl River Delta, Singapore, the Philippines, or Mexico. As a result, the total percentage of our workforce that is employed directly or in a field related to manufacturing has declined steadily since the late 70s, to a point where it now constitutes roughly 9% of American workers. Compare this statistic to the boomtown heydays of the early 1950s when around 30% of our workforce was engaged in manufacturing, and you can see the great disparity. Cheaper workers, more permissive labor laws, and certain aspects of free trade agreements have all contributed to a culture and atmosphere where it is deemed “smart” – and justifiably so – for a large company to migrate its manufacturing capacities overseas. Few companies have used the productivity of foreign workforces more brilliantly than California’s Silicon Valley technology companies, where outsourcing of printed circuit boards and silicon chips has gone on since at least the 1980s.