Sunday, February 25, 2007
When we talk about the transition of the U.S. manufacturing economy two words keep coming up: "service economy."
No longer is the U.S. troubled with that dirty business called manufacturing, making things, adding value to what we do for a living. We have already become a "service economy," hamburgers and "fries," selling services, including credit cards and ways to take out loans to pay off our credit cards.
American automotive manufacturing and all it supports, once the heart of our economy, is struggling. We seem to support and prefer foreign cars. As an example, the two large auto agencies on the east side of Richmond.
So auto manufacturing joins the list of manufactured products that have moved offshore, along with the part suppliers, machine tool industry and tool and die shops that support it. The recent closing of the Visteon parts manufacturing plant in Connersville should make us think. Had the OEM auto transplants been buying parts from Visteon instead of their own parts suppliers, Connersville might still be in operation. So who is to blame? Ford, the auto transplants, the unions -- or should we take some of the blame with our love of foreign cars?
What is certain is that the U.S. can't survive as a high-tech and service economy. I do not have any prejudice against non-U.S. companies selling us their goods so long as it is on a level playing field. However, when Visteon shuts its Connersville plant to become a more global competitor and moves its work offshore to Third World nations where they pay pennies per hour, the company survives, but the workers in Connersville are out of a job. Maybe all this free trade is not so free. So the next time you purchase that new foreign car, ask for "fries" with it.
http://www.pal-item.com/apps/pbcs.dll/article?AID=/20070225/NEWS0302/702250343/1003/NEWS03