A Guide to Convince Youth to Pursue Manufacturing Jobs [PART 1]
Posted by Bert Maes on May 27, 2011
- The countries that enjoy a strong manufacturing base have a healthier financial situation. Loss of industry makes a country lose exports, lose income and lose standards of living for the citizens. Loss of manufacturing contributes to impoverishment.
- When a country loses its manufacturing base, there is no chance that a country generates enough wealth, as the service sector gets fewer chances to grow. A country can’t trade services for most of its goods, services are mostly the act of using manufactured goods. According to the WTO, 80% of world trade among regions is merchandise trade — that is, only 20% of world trade is in services. Every single economy needs substantial contribution from its manufacturing sector. Increased growth depends on the performance of manufacturing.
- Manufacturing makes a bigger contribution to exports than anything else. “It still contributes to 50% of all our exports,” says Sir Alan Rudge. “The only valid way to close the trade gap is something like 20% increase in manufacturing. Anything else is pure theory. Without manufacturing the economy would be a disaster. It is already weak and it would be much weaker.”
- Most jobs, directly or indirectly, depend on manufacturing. Manufacturing jobs create 3 to 4 supporting jobs, while service jobs create only 1 to 2 other jobs. More than 1 in 6 private sector jobs depends on the manufacturing base.
- The most powerful nations in the world are those that control the machinery that makes the goods. Jon Rynn shows that about 80% of the world’s production of factory machinery has been controlled by what we would consider the “Great Powers”. Until the 1950s, the US had produced about 50%; we now produce less than China’s 16%.
- Machine tools and technological improvements in that machinery are the main drivers of economic growth. No machinery industries, no sustained, long-term economic growth. Machine tools lead to the explosive economic growth of the last two hundred years. A machine tool makes the metal components that not only go into other pieces of machinery, such as cars, but are used to produce yet more machine tools.
- Millions of jobs have been lost in manufacturing. However this workforce reduction in manufacturing companies was in many cases due to an increase in productivity and a shift to higher-skilled labor. Technology explains drop in manufacturing jobs. Productivity growth is “perhaps the single most important determinant of average living standards”. If manufacturing production declines, our living standards will begin to fall.
- The modern factory is no longer a giant building filled with hundreds of interchangeable low-skill, low-wage full-time employees. With the right skills most manufacturing operations offer rewarding, creative career opportunities involving sophisticated equipment.
- The problem of course is that manufacturing takes time to develop and change and be able to build up the markets. In financial services the actions can be taken a lot faster. Improving manufacturing output is clearly not a short term project.
- Do you have any other important facts we should tell the youth of the nation?