Why Manufacturing Matters

Abstract

This article explores the role of manufacturing industry as a key to innovation, economic health, and national security. As engineers and manufacturers develop new technologies, they build the capabilities to extend and innovate in new fields. Those innovations give manufacturers the performance or cost edge they need to compete in a crowded international marketplace. U.S. manufacturing innovation is lagging behind high-wage nations such as Germany and Japan. The article suggests that what the United States must do now is close the gap between innovation and commercial scale-up and production. It already leads the world in creating disruptive technologies and is rapidly moving towards energy independence. The imposing wage gap that once separated it from other nations is closing. Some American companies have begun reshoring manufacturing operations located in other nations already.