The Biz of Pacelinebiz

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Made in the U.S.A.

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“Made in the USA” Those words are very rare these days and that is a shame.    Over the past 20+ years manufacturing jobs have left the United States for various destinations.  To be fair, the loss of jobs has been offset to a degree by lower priced imported products.  The move away from manufacturing to a service economy has been lamented for years but I believe we are now seeing the problems this can cause.  As our dollars go overseas to buy foreign products the new middle class in the emerging markets are now becoming consumers.  The problem with that is we have very little to sell them.    

Large markets in China and India can be magnificent opportunities for US companies that make products in demand.   The Chinese are reportedly big fans of Cadillac’s, we can only hope to take advantage of this and create demand for our other products like Chevy’s and Ford’s.  I would settle for exporting steel coils, pipe, tubing and other raw material inputs.  A 10% increase in demand for our products in a country of 1 billion people is 100 million more potential customers.  That is the equivalent of a 33% increase in our country.   

We need to increase our exports to these countries!  That is the only way we can take advantage of the rising middle class that we created when we exported our jobs over the past 20 years.   This is a classic example of the pendulum swinging back in our favor.  In Economics this is called equilibrium.  If we are able to export products we can grow our GDP and get the nation back to work.  This is not going to happen overnight but everyone needs to realize that it no longer has to be a one way street when dealing with China or India.  I believe that the American business community will surprise us with its ability to find markets for its products. I know it may sound hard to believe but as long as we do not get too much government interference (Foreign and Domestic) we will start to see it.  If we don’t take advantage now I don’t see how we can grow and prosper. 

Have a great week and tell a friend about the coming export driven job creation boom.


Written by pacelinebiz

July 26, 2010 at 8:25 pm

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