Thursday, April 28, 2016

Returning Manufacturing to US

It is completely doable.  In the 1970s, we had quality problems.  In the US we started to attack the quality problem with every conceivable method.  We had Quality Circles and developed close tolerance automation processes.  In the 1980s we developed process sheets for every process from design to fabrication.  Advances in electronics enabled us to improve computer controlled manufacturing.  We developed Computer Integrated Manufacturing and connected design to fabrication so that Computer Aided Design CAD could communicate directly with fabrication machines.  In the 1990s we codified these ideas into Lean Manufacturing and set up employee teams to review process improvements and implement them.  We further developed design process controls to make designs easier to assemble.

For high volume manufacturing processes, we built highly automated close tolerance factories to run 24/7 staffed with 700 equipment technicians instead of needing a workforce of 2000 or more.  We automated material handling with barcodes and laser readers.  Computers moved materials into place. These high volume plants were built for the production of beer, lightbulbs, diapers, automobiles and everything else.  That enabled us to reduce labor costs and keep these plants in the US, but these plants were very expensive to build.     

Medium to low volume manufacturing didn’t have the capital or need to automate completely, but they automated everything they could.

US companies moved overseas to capture savings on labor cost and these foreign countries imposed little to no regulations or taxes.  They wanted touch labor jobs for their citizens so many of our high labor content clothing and shoe production didn’t automate as much. 

Electronics Could Return

Electronics manufacturing was cheaper overseas, but we also had to move Concurrent Design to these plants because electronics component manufacturers continued to make components obsolete and that required redesign.  It is expensive to try to control quality in a Chinese electronics stuffing plant.  Quality has suffered and costs have increased with increased returns and travel expenses.  We’ve seen our electronics and electrical products become less robust and now there is demand for better quality for consumers who will gladly pay more for better quality products. 

Tax Changes Needed

We need to reduce corporate taxes from 35%.  The US corporate tax rate is the highest on the planet.  It would be best to reduce it to zero.  We also need to tax manufactured goods that reinter the US to eliminate the incentive to keep manufacturing out of the US.

Environmental Regulations

We need to reduce all environmental regulations.  We need to remove carbon regulations, because they are unsustainable and they are based on the global warming hoax.  We need to keep our coal powered electric plants to keep energy costs low. 

Labor Regulations

We need to repeal Employment Laws that are costly and unhelpful.  We need to remove union abuse to allow us have a team oriented workplace.

Critical Evaluations

The chemicals used in mining and manufacturing processes will need to continue to be controlled to prevent water pollution.  Developing effective treatment methods to contain these chemicals will need to be perfected. 

Norb Leahy, Dunwoody GA Tea Party Leader 

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