Manufacturing has always been a pillar in the American economy and the backbone of our pride, today comprising 12% of our total GDP or about $1.8 trillion ($1,800,000,000,000). This is equivalent to the entire GDP of Canada and Australia. Basically, if all American manufacturing came to an end, it would be proportionate to the entire economy of Canada or Australia coming to a screeching halt!
For the past few decades corporations have been outsourcing manufacturing jobs to foreign nations to cut cost. New businesses and emerging industries are opening their first factories in other continents, producing only a fraction of the American jobs they could potentially offer. Right now there are nearly 10 million Americans without a job and many more looking for “full time” employment.
Issues with Outsourcing
Just since the year 2000, outsourcing factory labor has resulted in a loss of nearly 6 million jobs. That is over 1,000 jobs per day from 2000 to 2015.
Let’s take a look at the overall impact when a factory closes.
A manufacturing plant employing 1,000 people decides to shutter it’s doors. This would actually result in 2,600 total job losses. Studies funded by our own federal government suggest that for every 1 manufacturing job, 1.6 other jobs are supported or created. By contrast, for every 1 factory job lost, 1.6 other jobs are lost indirectly.
It’s true, outsourcing has temporarily driven down the price of consumer goods, but in many cases prices have remained unchanged or increased as a result of the vulnerability of inflation. It is highly possible we could develop an economic environment with a growing number of people out-of-work who can barely afford groceries, let alone luxury goods. When people aren’t buying, companies aren’t selling, and when companies aren’t selling, they’re not hiring and usually laying off more people.
If just 1 million jobs where brought back to America, this could generate an additional 1.6 million jobs indirectly. When considering the average per capita of US citizens, this could produce over $100 billion in new economic activity per year.
At this moment, Americans have never been more interested in the American Made movement than any other point in history. There are thousands of small businesses and makers all across the country committed to keeping manufacturing on our soil, whether it’s a 1-man shop or employer of hundreds. Our mission is to support this movement by empowering Americans to buy American Made products wherever possible and to support the businesses that stand behind this commitment.
Here’s how YOU can Get Involved!
Government and Politics
80/20 USA understands that Government’s good intentions can sometimes be crippling to some American businesses.
Occasionally we notice a bill that we believe may dramatically interfere with American manufacturers, small businesses, and entrepreneurs trying to sustain American manufacturing jobs. On the other hand, we will rally behind other Bills that support American manufacturing jobs. 80/20 USA takes part in petitions and letter writing campaigns to help steer the decision makers to make good choices on Capitol Hill.
Sources: http://data.bls.gov/timeseries/CES3000000001 + http://manufacturing.gov/mfg_in_context.html