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Alexander Wolfe
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Blogger
Jobs not coming back
Alexander Wolfe   1/27/2012 10:50:00 AM
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Steve Jobs famously told President Obama that "those jobs aren't coming back," in reference to jobs lost to China. The economy is still in the midst of structural change, and hasn't settled yet, which makes long-term strategic planning difficult. Even more than that, the political reality is that many people are opposed to government setting and spending money on an industrial policy. At the same time, you have people like former Intel chairman Craig Barrett sounding the alarm about STEM, or lack thereof. I.e., the US needs to educate children so that they have a math and science basis from which they can progress to technical careers. I wish I knew what the solution was. The one bright spot is that all the US manufacturing executives I know wish they could spend money on upgrading plant infrastructure. So there's pent up demand and desire to move forward and become more competitive.

TJ McDermott
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Blogger
Re: SOTU and manufacturing
TJ McDermott   1/27/2012 10:00:34 AM
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The structural steel modules (not just the raw steel, but finished bridge assemblies) for the new Bay Bridge in San Fransisco are being fabricated in China.  California decided not to use federal funds so they could save $400 million dollars.

The cost impact is MUCH greater, and will get worse.  It was a short-sighted, short-term savings by state government.

The ridiculous battle over the Air Force tanker program is another instance where the government decision to build domestically vs. internationally should never have gone as far as it did.

We have ONE large body aircraft manufacturer left in the country.  To not use it for such a program, and keep tens of thousands of jobs (directly and indirectly involved with actual construction) is dereliction of our elected official's duties.

Beth Stackpole
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Blogger
SOTU and manufacturing
Beth Stackpole   1/27/2012 9:12:31 AM
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I listened to the President SOTU and was heartened by the focus on calls for revitalizing the manufacturing industry and supply chain, including possible tax reform that would encourage corporate investment in reshoring American jobs. That bubble gets burst rather quickly when you consider the very real and difficult challenges that lie ahead before any of that transition can happen and your piece does a stellar job of spotlighting those challenges.

The question is what kind of infrastructure can Americans possibly create that could rival the economic advantages that a FoxConn city or government subsidiaries bring to the table making it such a fiscal no-brainer for companies like Apple to outsource  overseas? There are no easy answers. With all the political jockeying, two of the most effective tools--corporate tax reform and our own government programs--don't stand a chance when up against an increasingly devisive Washington.

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