Some key highlights:
1. You can’t split R&D and manufacturing. When you offshore manufacturing, you send off design with it and you lose a big chance to cultivate innovation in the US - Andy Grove, CEO of Intel.
2. Manufacturing is needed to reduce the trade deficit that started in 1971
3. U.S. exports to China are $153.8 billion, imports are $536.8 billion. Hence trade deficit with China is $382.9 billion
4. The private sector demands out-of-the-box thinking. In the gov’t, follow instructions; don’t make waves; keep your head down for career advancement.
5. Small and medium-sized businesses create about half of all manufacturing jobs and make up more than 90 percent of U.S. manufacturers
6. Cluster theory - a lot of business in the surrounding area impacts other businesses i.e. supply chain. Businesses shutting down will be like dominoes impacting other businesses - Michael Porter, The Competitive Advantage of Nations" (1990)
7. Foreign subsidy - foreign companies ie China get a lot of subsidies to build manufacturing - free land, and factory capital. Cheap labour is not the only competition
8. Corporate tax - The US charges heavy corporate tax on foreign earnings hence companies rather invest outside than bring it back - John Chambers, CEO and Chairman Emeritus, Cisco
9. < 1 percent of American businesses export and mostly to Canada and Mexico only
10. US global manufacturing share in the ’90s was >22%. It started slipping in 99’. Today it’s 16.8%. China’s global market share was 3% in the 90, 8% in 2000 - today it is 28.7%
This is just some key takeaways. I'll put up the pocket briefs on this book on Habla News for further read if interested
