Table Of ContentTHE BUSINESS Saving K Economics Collection
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EXPERT PRESS LL
American Manufacturing I Philip J. Romero and Jeffrey A. Edwards, Editors
DIGITAL LIBRARIES N
G
S
The Fight for Jobs, Opportunity, and W
EBOOKS FOR O
BUSINESS STUDENTS National Security R
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Curriculum-oriented, born- H
William R. Killingsworth
digital books for advanced
Saving
business students, written In his new book, Bill Killingsworth documents the decline of eco-
by academic thought nomic and intellectual wealth caused by the loss of U.S. Manu-
leaders who translate real- facturing. His thought provoking analysis of this empirical data
world business experience leads us back to the answers to save ourselves and generations American
into course readings and to come. —Rick Jarman, President and Chief Executive
Offi cer, National Center for Manufacturing Sciences
reference materials for
students expecting to tackle Exceptional book—timely and insightful. His analysis is spot on,
Manufacturing
management and leadership examples persuasive, and recommendations worth consideration
challenges during their at the highest level. A call to action we cannot ignore. —James
S
professional careers. Rogers, Major General (Retired), U.S. Army A
V The Fight for Jobs,
POLICIES BUILT Drawing on his extensive experience, thorough research and ob- I
N
BY LIBRARIANS vious sense of responsibility, Dr. Killingsworth provides a com- G
prehensive and provocative case for the importance of American A Opportunity, and
(cid:127) Unlimited simultaneous
manufacturing. This timely work should be required reading M
usage for anyone engaged with forming or leading economic policy. E
R
(cid:127) Unrestricted downloading
—Ralph L. Resnick, President and Executive Director, IC National Security
and printing NCDMM, Founding Director, America Makes A
(cid:127) Perpetual access for a N
one-time fee Dr. Killingsworth presents clear arguments as to why manufac- M
(cid:127) No platform or turing is essential to the United States, and how our nation can A
N
maintenance fees capture, benefi t, and drive the future of the world economy via U
(cid:127) Free MARC records embracing global concepts of manufacturing and taking the lead F
A
(cid:127) No license to execute on innovating its future. —Thomas R. Kurfess, PhD, PE, Pro- C
fessor and HUSCO/Ramirez Distinguished Chair in Fluid T
The Digital Libraries are a U
Power and Motion Control, George W. Woodruff School of R
comprehensive, cost-eff ective Mechanical Engineering, Georgia Institute of Technology IN
way to deliver practical G
Dr. Killingsworth paints one of the most defi nitive pictures of what
treatments of important William R. Killingsworth
has been happening over the last several years in the U.S. manu-
business issues to every
facturing sector. His statistical analysis and compelling anecdotal
student and faculty member.
evidence contribute invaluable insights for scholars and policy-
makers alike. This is a must-read in Washington and around the
country. —Neal Orringer, Vice President, Alliances and Part-
nerships, 3DSYSTEMS
For further information, a
Dr. William R. Killingsworth is Vice President of Manufac-
free trial, or to order, contact:
turing and Supply Chain Research at DESE Research, Inc., a
[email protected]
high technology consulting and research fi rm.
www.businessexpertpress.com/librarians Economics Collection
Philip J. Romero and Jeffrey A. Edwards, Editors
ISBN: 978-1-60649-610-7
Saving American
Manufacturing
Saving American
Manufacturing
The Fight for Jobs, Opportunity,
and National Security
William R. Killingsworth
Saving American Manufacturing: The Fight for Jobs, Opportunity, and
National Security
Copyright © Business Expert Press, LLC, 2014.
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted in any form or by any
means—electronic, mechanical, photocopy, recording, or any other
except for brief quotations, not to exceed 400 words, without the
prior permission of the publisher.
First published in 2014 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-60649-610-7 (paperback)
ISBN-13: 978-1-60649-611-4 (e-book)
Business Expert Press Economics Collection
Collection ISSN: 2163-761X (print)
Collection ISSN: 2163-7628 (electronic)
Cover and interior design by Exeter Premedia Services Private Ltd,
Chennai, India
First edition: 2014
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
To my beautiful and amazing wife, Susan, who endured countless hours
alone while I did my writing. Her encouragement, patience, and
“great dinners” helped to make this possible. Thank you my love!
“It is a capital mistake to theorize before one has data. I nsensibly,
one begins to twist the facts to suit theories, instead of theories
to suit facts.”
Sherlock Holmes, A Scandal in Bohemia
Contents
Preface ..................................................................................................ix
Prologue .............................................................................................xvii
Acknowledgments .................................................................................xix
Chapter 1 Background ����������������������������������������������������������������������1
Chapter 2 Historical Job Losses in Manufacturing �����������������������������7
Chapter 3 Loss of Establishments ����������������������������������������������������37
Chapter 4 Observations on Employment and the Number
of Establishments ������������������������������������������������������������57
Chapter 5 Manufacturing Plant Closings by Size �����������������������������67
Chapter 6 Industrial Production and Industry Output ������������������135
Chapter 7 Imports and Balance of Payments ���������������������������������181
Chapter 8 Findings, a History of Warnings, and Corrective
Policy Actions ���������������������������������������������������������������213
Epilogue .............................................................................................259
About the Author ................................................................................263
References ...........................................................................................265
Index .................................................................................................273
Preface
…. to be independent for the comforts of life we must fabricate them
ourselves. We must now place the manufacturer by the side of the agri-
culturist... He, therefore, who is now against domestic manufacture,
must be for reducing us either to dependence on that foreign nation, or
to be clothed in skins, and to live like wild beasts in dens and caverns.
I am not one of these; experience has taught me that manufacturers
are now as necessary to our independence as to our comfort…
—Thomas Jefferson, Thomas Jefferson Writings, 1984
Thomas Jefferson astutely recognized the danger of dependence on a for-
eign nation for essential goods and the importance of manufacturing for
the preservation of our independence� For a young country with a nascent
manufacturing sector, the dangers to the United States were clear and
real� Today our country again faces mounting dependence on a foreign
nation and the dangers again appear to be clear and real� The situation is
a cause for concern and action�
Perhaps surprisingly, the concern does not regard America’s depend-
ency on foreign oil producers� The United States has long worked toward
“energy independence” and as a result, with new production techniques
and growing efficiencies, monthly domestic production exceeded imports
for the first time in two decades in October of 2013 ( Bloomberg News
2013)� This is, of course, a very positive development for both the economy
and our national security� Nevertheless, the United States still imports 35
percent of the petroleum it uses and the trade deficit for oil was a stagger-
ing $269 billion for the year 2013 (USA Today 2013)� These figures are
still a cause for concern and strong motivation for continuing efforts to
reduce the oil dependency and the outflow of dollars to other countries�
If not oil, then what dependency is of concern? It’s the one to which
Thomas Jefferson referred to in the previous quote—manufactured goods�
This book examines the concern for manufactured goods that range
from computers to communication equipment, critical pharmaceutical
