CHAPTER 7

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INDUSTRIAL AND COMMERCIAL MANUFACTURING IN THE U.S.

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WHY ARE SO MANY MAJOR MANUFACTURING COMPANIES LEAVING THE UNITED STATES? Manufacturing is reinventing itself every day because the pressure is on every company to compete in the global environment. Demands of a global economy will continue to shape manufacturing jobs in the United States and even in Mexico. That's because competition in China can make products even CHEAPER. Mexico has already lost factory jobs to China, who pay their factory workers on average about a dollar an hour. Quality of products WILL suffer, and consumers will lose. Consumers need to realize this and start buying products in the GOOD OLD U.S.A.
		MAYTAG WASHER AND DRYER Maytag is one of the last of the manufacturers to go to Mexico. The MAYTAG REPAIRMAN will really be lonely now.
		STEEL MILLS IN THE UNITED STATES Twenty years ago, foreign competition brought United States Steel Mills to its knees---an opening act in the global economy drama still playing out today. Employment projections from the Bureau of Labor Statistics, indicate that U.S. manufacturing jobs are expected to decline by 3% over a 20-year period, from 19.3 Million in 1988, to an expected 18.6 Million by 2008. Powerful unions had negotiated labor contracts that offered American Steel Workers some of the best salaries that manufacturing employees had ever seen. BUT those high wages cost the workers their competitive advantage. The price of steel from Japan, which has modernized its mills and from China, with its massive cheap labor force, has destroyed the U.S. steel industries.
		GLOBALIZATION Globalization has 2 direct effects on the American work force. First, it takes middle-class manufacturing jobs away. Second, globalization facilitates downward pressure on wages, benefits and living standards on the remaining jobs that it doesn't destroy. BOTTOM LINE: BUY AMERICAN!!!!!!!