Americans believe that U.S. manufacturers have what it takes to compete against anyone, and that a strong manufacturing sector is very important to the country’s economic prosperity and standard of living. But most Americans don’t believe the U.S. manufacturing sector will grow, nor are they drawn to careers in manufacturing for themselves or their children.
Huh?
If most people believe U.S. manufacturers have the people, technology, and work ethic to compete globally, why are so many so pessimistic about manufacturing?
These apparent contradictions are revealed in survey results released today by Deloitte and the Manufacturing Institute. The two groups asked 1,055 individuals residing in 50 states about their attitudes and perceptions about manufacturing. Many of the findings were eye-opening.
Many Americans are much more upbeat than I expected about the proficiency of U.S. manufacturers, and many are more positive about the overall importance of manufacturing than I would have guessed. (Perhaps that’s because, as the country has struggled toward economic recovery in recent months, manufacturing has been one of the few bright spots.)
Seventy-eight percent of those surveyed said manufacturing is very important to the U.S. economy, and 76% said it is very important to the American standard of living.
Respondents ranked manufacturing as the second-most important industry in terms of supporting a strong national economy, behind only energy.
And 60% of those surveyed said U.S. manufacturers can effectively compete in global markets. The use of technology and a skilled workforce are the two most significant advantages that U.S. manufacturers have over global competitors, according to the respondents. R&D, energy availability, access to natural resources, and productivity also were seen as big advantages.
But, despite those advantages and Americans’ overall confidence in U.S. manufacturers, many have strong doubts about manufacturing’s future. Thirty-two percent said they expect the manufacturing sector to weaken over the next 12 months, compared to 13% who said they expect it to strengthen. And 55% said they expect the U.S. manufacturing sector to weaken over the long term, compared with 8% who expect it to strengthen over the same period.
Only 30% said they would encourage their child to pursue a manufacturing career.
So what explains the apparent contradiction? Those surveyed say they believe government inaction is undercutting the competitiveness of U.S. manufacturers. Survey respondents identified government business policies, tax rates on individuals, and federal government leadership as three factors creating disadvantages for U.S. manufacturers. Respondents said trade policies and corporate tax policies also create disadvantages.
“In short, they believe we have what it takes — but they’re not seeing the type of leadership and policies required to keep the manufacturing industry healthy and successful in the long run,” Deloitte and the Manufacturing Institute reported. “So it should come as no surprise that they are less likely to pursue jobs in manufacturing or encourage their children to consider these jobs in the future.”
Even if it is not accurate, this perception creates big problems for U.S. manufacturers. Manufacturers will struggle unless they are able to attract the best and the brightest to key manufacturing jobs that increasingly require technology savvy as well as collaboration skills.
To be sure, many organizations, such as the Automation Federation, are working hard to change the public perception of manufacturing and get more talented young people interested in technical and engineering careers.
But I’m afraid the widespread perception that U.S. manufacturing is in unalterable decline won’t change until most people see clear signals that state and federal governments are serious about creating and executing a long-term industrial policy that works.
