In the
1980s, Atlanta was an electronics manufacturing hub. This increase in
engineering and manufacturing was a test to see how this Coke and Delta town
would do. We had sizeable and growing electronics companies headquartered in
Atlanta and every other electronics company had satellite operations in
Atlanta. Some of these were commercial and others were defense. Atlanta Metro
doubled in population from the 1980s to the 2000s from 3 million to 6 million.
After
2000, the multi-industry design cycles were ending and NAFTA had passed in
1993. Also, Lean Manufacturing had
developed to the extent that fully developed manufacturing processes were under
control and could be moved anywhere. This
confluence of events made it possible for companies to consolidate back to
their home offices and move overseas. They did both and the electronics
manufacturing companies began to contract and close their Atlanta plants and
offices.
Many
“developing” countries were ready to offer lower labor costs, lower taxes, free
land and buildings and little or no regulations. They offered “bribes” to US companies to get
them to move. This would allow US companies to move overseas and cut their
manufacturing costs by 50%. Most of them did move overseas, because their
competitors were all doing it and they didn’t want to be “priced out” of their
markets.
Atlanta
had been a player in the development of the PC and the upgrading of telephony,
cable TV, defense electronics, smart phones and many other design cycles. Many
foreign companies had design and manufacturing operations in Atlanta Metro.
The US is
now in the process of reducing corporate and individual taxes and ending
excessive immigration in order to move our 94 million working-age US citizens
to jobs. Atlanta Metro can benefit from the return of companies and rural
Georgia is likely to see manufacturing return to their cities as well.
Some
electronics design and manufacturing may return, but it is more likely that
Georgia will see more cyber security and placement of manufacturing based on
proximity to venders and shipping. The old rules should apply. When Georgia had
lots of design and manufacturing, the design work was largely in large cities
and the manufacturing was in rural counties. Companies look for low land costs
and low taxes as well as the right labor force. Georgia should compete well
with California, Illinois and other bankrupt States, but it will need pipelines
and liquid natural gas shipping infrastructure to export energy.
Norb
Leahy, Dunwoody GA Tea Party Leader
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