Manufacturing in America: What’s the Strategy?
For over 15 years, I've lived and breathed manufacturing. I've been fortunate enough to work with iconic brands like K2 Sports, MSR, and Thermarest, and I've seen firsthand the passion and dedication that goes into making things. There's a unique pride that comes from being part of a manufacturing organization – a feeling of building something tangible, something that matters.
But let's be honest, for a long time, the USA has been fighting an uphill battle. We play by a different set of rules. We prioritize fair labor practices, offer decent employee benefits, and adhere to stricter environmental standards. While these are things we should be proud of, they also create a cost disadvantage compared to countries with lower standards. Like many, I'd love to see a resurgence of manufacturing in the USA. But here's the thing: we can't blindly bring everything back. Basic economics tells us that countries should focus on their strengths. There are industries where the USA is simply not competitive anymore, like textiles, electronics and garment manufacturing to name a few. Supply chains have shifted as well as talent. Trying to force those industries back doesn’t make sense.
Instead of a blanket "bring it all back" approach, we need to be strategic. We need to ask ourselves: where do we want to invest our talent and resources? What is our competitive advantage? Do we want to focus on rebuilding cut-and-sew facilities, or do we want to be at the forefront of developing the next generation of technologies? Our talent capital is not unlimited.
America's strength lies in innovation and creation. We excel at developing new ideas, designing cutting-edge products, and pushing the boundaries of what's possible. That's where we should be focusing our energy. So, yes, manufacturing should be part of the American equation. But it needs to be a strategic part. It's about identifying the industries where we can be competitive, where we can leverage our strengths, and where we can create high-quality jobs and then apply the right incentives to support those industries. What we’re seeing now is an incoherent strategy lacking focus. It took decades for manufacturing to move overseas. Reshoring will not happen overnight, and when it does, it should be strategic to strengthen our competitive advantage.
Let's be smart. Let's focus on what we do best, invest in innovation, and build a future where American manufacturing is a source of pride and a driver of economic growth, where it makes sense. Hopefully, common sense will surface in this debate.