Article Abstract:
Worrying Over Jobs Isn’t Productive
Fortune: October 27, 2003
Geoffrey Colvin; Senior Editor-At-Large
From 1995 to 2002, the world’s productivity rose 30%, according to a Fortune Magazine article. North American manufacturing is leading the way in productivity because the work ethic and skills of its manufacturing workers cannot be matched.
Many of these manufacturing jobs are being lost. However, according to the article written by Geoffrey Colvin, senior editor-at-large at Fortune, based upon a report by Economist Joseph Cason at Alliance Capital, found that the loss of manufacturing jobs was a global trend. The article demonstrates from 1995 to 2002 the world’s 20 largest economies had lost 22 million manufacturing jobs. China, which is attracting some North American manufacturers with low cost labor, lost 15 million jobs during that period. By comparison the United States lost two million.
While the loss of two million manufacturing jobs is significant, more jobs were saved because North American manufacturers can compete by offering higher quality products and more efficient production processes. While foreign countries claim to be able to manufacture with lower cost per unit, companies that do move their operations overseas find that the total cost of offshoring negate any competitive advantage they may have gotten with lower labor force costs.
Save Your Factory has similar articles that demonstrate the advantages of keeping your factory in North America, including other Fortune articles that report how efficiency practices keep manufacturing jobs from moving overseas. Save Your Factory is dedicated to providing you objective and complete information on how advances in technology, lean manufacturing, and robotic automation can improve your factory’s long-term viability before deciding whether or not to move overseas. Contact us to learn more about the Save Your Factory initiative and get additional resources to help educate yourself on the future of your company.
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