Tuesday, July 28, 2020

07/28/20: President Trump Holds a News Conference-Bringing Manufacturing Back

Kodak Pharmaceuticals is launching to produce drugs in the U.S. instead of in India and China. They will be using the Defense Product Act. The company will produce generic drugs and the starting base of other drugs. 25% of generic drugs ingredients. The drug market is huge and ensuring U.S. companies are producing and selling overseas is important. 

Bringing back manufacturing of all types is important for the long-term success of our country. Companies move overseas, take advantage of cheaper taxes, lower costs, etc... and then sell these products back here for a higher price. The problem is that the U.S. is like a bucket and when you keep taking out and real wages don't necessary rise fast then we loss of net wealth. 

Bringing back manufacturing is an important aspect of building a strong society. It not only produces jobs but can improve the lives of Americans for generations. As we develop and move more into advanced manufacturing we will have a positive influence on global economics in addition to environmental improvement. The U.S. is more concerned about the health of our environment than many other nations.

How we bring back manufacturing is a difficult question. My take is to allow areas to capitalize on their local/regional competencies to create initial cluster, add industries to develop extended industries, and then in turn focus on innovation through these clusters that would be very difficult for other nations to copy without first building the environment first.

We still have infrastructure, labor, and a positive investment environments that may allow these clusters to develop. That will require understanding existing competencies, building export infrastructure, re thinking government, creating a safe and equal labor market,  attracting global investments, encouraging R&D, and unlocking entrepreneurial enthusiasm of the Millennial generation.

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