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Needed: ‘manufacturing universities’ to keep U.S. competitive

By | January 16, 2013, 9:18 PM PST

With the tech-driven manufacturing resurgence, it may be time for the government to push for university programs dedicated to preparing people to lead this new economic growth engine.

That’s the view of Robert Atkinson and Stephen Ezell, who call for the establishment of at least 20 institutions of higher education as “U.S. Manufacturing Universities.” In a report published by Brookings Institution, they urge the U.S. Congress to enact a series of specially designated universities in the same way the legislature established land-grant colleges in 1862 to promote learning in “agriculture and the mechanic arts.” These colleges “played a key role in enabling the United States to later take the lead in the mechanization of agriculture and the industrialization of the economy,” Atkinson and Ezell state.

The need for such institutions is urgent in an increasingly competitive global economy in which the U.S. is falling behind in the number of STEM (science, technology, engineering and math) graduates. As Atkinson and Ezell describe the challenge:

“America competes against a wide array of nations seeking to win the race for global innovation advantage, especially in advanced manufacturing. A new cadre of federally-designated ‘Manufacturing Universities’ that revamp their engineering programs with particular emphasis on work that is relevant to manufacturing firms while providing engineering students with real-world work experience should be part of the solution.”

The report observes “university-based engineering programs can play a critical role in supporting advanced research, particularly in areas of relevance for manufacturers, and can help train the highly skilled workforce that advanced manufacturers need.”

The erosion in manufacturing capability weakened the U.S. economy over the past two decades, Atkinson and Ezell add. “Every lost manufacturing job meant the loss of an additional two to three jobs throughout the rest of the economy,” they calculate.

Funding for Manufacturing Universities would consist of an annual $25-million grant from the National Science Foundation. Designated universities would be required to refocus engineering programs around manufacturing engineering; increase joint industry-university research projects; add more training of students that incorporates manufacturing experiences through cooperative education or other programs; and provide a Ph.D. program focused on turning out more engineering Ph.D.s who would work in industry.

(Photo: Ford assembly line, via Wikipedia.)

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Joe McKendrick

About Joe McKendrick

Joe McKendrick is a contributing editor for SmartPlanet.

Joe McKendrick

Joe McKendrick

Contributing Editor

Joe McKendrick is an independent analyst who tracks the impact of information technology on management and markets. He is the author of the SOA Manifesto and has written for Forbes, ZDNet and Database Trends & Applications. He holds a degree from Temple University. He is based in Pennsylvania.

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Joe McKendrick

Joe McKendrick

Joe McKendrick is an independent consultant and editor. Joe has performed project work for the following companies in the IT marketspace: IBM, Systinet/HP, Teradata. He has performed project work for the following organizations in partnership with Unisphere Research (Unisphere Media): IBM, Oracle Corp., International Oracle Users Group, Oracle Applications Users Group, Professional Association for SQL Server, International DB2 Users Group, International Sybase Users Group.

He writes for SmartPlanet and is not an employee of CBS.

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-1 Votes
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The article mentions the real problem, but fails to address that problem,
and the problem is mentioned in the sentence: "The erosion in manufacturing capability weakened the U.S. economy over the past two decades".

They fail to address why that manufacturing capability was weakened.

The "solution" mentioned in the article, for creating manufacturing universities, fails to get at the root of the problem. That solution would have absolutely no effect on manufacturing returning to the U.S.

The U.S. lost millions of manufacturing jobs when it became uncompetitive against foreign labor and foreign manufacturing facilities. The U.S. lost those jobs when the U.S. became too expensive a place in which to do any manufacturing. The cost of doing business in the U.S. is the major reason for the losses in manufacturing. The costs became greater when taxes were raised on businesses. When foreign facilities don't have the high tax rates, that is equal to huge savings to the manufacturers, and thus, it's a no-brainer as to why they would send operations overseas. The cost of doing business also goes up, tremendously, when the number of regulations that businesses have to comply with, have added to the cost of manufacturing. Foreign facilities don't have to contend with the massive number of regulations which are intrusive and obstructive and expensive. Then there is the cost of labor, which, for sure, is a lot lower overseas, where people are willing to do equivalent work for a lot less, and benefits payments are virtually non-existent or very low in comparison to those of the U.S. Sure, there is a cost of shipping that adds to the cost of the products when they're shipped back to the states, but the advantages are still very hard to overcome for those foreign workers and facilities.

Congress will never solve any problems if they continue to be in denial about the real problems which caused so much of our manufacturing base to move overseas or out of the country.

The programs that might send money to the universities, will just result in a massive amount of money being transferred from the tax payers pockets, to those universities. It will have become just another "wealth redistribution" scheme, with barely any benefit to the country.
Posted by adornoe
17th Jan
+1 Vote
+ -
hold on there
compared to slave labor, slave wages, no safety or environmental regulations, business owned in part or full by well connected military or well connected government posers our cost of manufacturing might be more. So we deserve to suffer as people like you believe? As do the American corporations past and present who can't wait to move all work off shore.
Do we need more red blooded american patriots like you and them?
Posted by affordablecomputerguy@...
Updated - 17th Jan
+2 Votes
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Patriotism begins at home
I'm based in a uk university and I'm very interested to read these comments. Clearly the problems faced by the US are also faced by Western Europe. Interstingly the one country that has largely thrived over here is Germany. A country that has focused on high skilled, high tech jobs and maintained high living standards for workers through strong union representation. I believe there are some very successful companies in the us and Europe that are missing a huge opportunity by continuing to look at short term narrow financial returns over a longer term survival. I read recently that apple could return all its manufacturing to the US with very little effect on its bottom line. Given the scale of this crisis such a gesture would I believe show apples commitment to the US. In extraordinary circumstances and given the scale of the recent handouts/ bail outs and corporate welfare perhaps we should be asking more of organisations that could help the citizens in the country that has provided the historical environment ( e.g democracy - which costs), intelligence and infrastructure.
Posted by c3do
Updated - 18th Jan
-1 Votes
+ -
Patriotism is not about committing economic suicide,
by deciding to keep facilities working, when they're losing money. That's idiotic.

It's preferable to have production facilities sent out of country, if it means keeping a company alive.

If patriotism is to matter, then government officials should be tasked with the matter of trying to keep manufacturing within a country. And, the only way to do that, is by creating a cost-effective environment, where a company doesn't have to ship operations and jobs overseas. High taxes and a massive number of costly regulations, will, for certain, send many businesses looking for less costly operating environments, and that often translates to other countries.

Think logically, instead of trying to appeal to one's patriotism. Patriotism won't keep companies from going bankrupt, and it won't pay the bills.
Posted by adornoe
18th Jan
-1 Votes
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Geez! You have a hard time understanding common sense....
Look, it's as simple as, if something costs less to manufacture out of the country, and the bottom line improves, then, of course, the companies involved will opt to have production off-shored or sent out of country. You don't have to be a genius to understand that.

Is common sense, in a business environment, about looking out for the people within the country first? Absolutely!!! But, if that means that, a company will be at a huge disadvantage, or has to close shop, then, it's much more preferable to send their production facilities and jobs overseas. In the end, more jobs are retained within the country, because, the company hasn't had to go completely out of country when the goods have to be brought back for sales and for creating other jobs. If a company has to go out of business, all jobs disappear, including those at the company, and the incidental jobs created when those products were distributed to the consumers, via retail, and retail jobs are a very important sector in the economy. Manufacturing is not a dead-end sector, where only those working in manufacturing have jobs. Those manufacturing jobs affect the rest of the economy, and a company that is shut down, creates jobs losses at the manufacturing company, and in the rest of the economy.
Posted by adornoe
18th Jan
+1 Vote
+ -
A little more to the story
Two items need mentioning.
1) The rising cost of transportation is nullifying the benefits of manufacturing over seas. Several comapnies have brought manufacturing back to North America because, even with higher wages, it's cheaper to build it here than it is to build it in China and ship it here. This doesn't apply to all products of course, but it is worth keeping in mind.
2) Automation is reducing the labour costs even further. While a robot has a higher initial cost, the operating cost of a robot is far less than an employee resulting in a very real return on investment. And as robots become more sophisticated, they can do more and more intricate work. This means that even when manufacturing does return to North America, it doesn't necessarily mean more jobs here. This alone negates the need for said universities.

What is truly needed is Entrepreneurial Universities that teach people how to be entrepreneurs.
Posted by mheartwood
17th Jan
-1 Votes
+ -
Before the entrepreneurs, we need a better business environment,
and what we have now, is a hostile business environment, where people are afraid to invest in new start-ups or even in existing companies.

What we have now is a very hostile anti-business environment, where Obama and democrats want to take a lot more from companies and from the investment class which is worried about their investments either being taken away or being prevented from being productive. High taxes and massive regulations, don't make for a friendly business environment, and union labor is also something which many business leaders fear.

Who is going to create a new business, risking his time and labor and know-how and money, in a very risky and environment, where returns on investment will be very poor or none?
Posted by adornoe
18th Jan
-1 Votes
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The LIE
university-based engineering programs can ... help train the highly skilled workforce that advanced manufacturers need.
Wow, I am so tired of this lie, that American businesses CAN'T FIND skilled workers. There are only two problems: 1) American businesses don't want to do ANY on-the-job training, and 2) they want to pay their workers third-world wage rates while their businesses benefit from first-world infrastructure and markets.
Plus the comments from adornoe above.
Posted by dmm99
17th Jan
0 Votes
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The problem is...
...that once a business invests in on-the-job training, the employee is free to leave and take that investment in training to another employer who is willing to pay more because he's not burdened by providing the training.

We used to have apprenticeships which bound the employee to the employer, but these fell out of favor well over a century ago when civil rights law started to consider it a form of slavery.and public education became standardized enough to provide an ample supply of pliant factory workers.
Posted by JohnMcGrew@...
17th Jan
0 Votes
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does anyone ever read anything about US history or care?
"The erosion in manufacturing capability weakened the U.S. economy over the past two decades, Atkinson and Ezell add. Every lost manufacturing job meant the loss of an additional two to three jobs throughout the rest of the economy, they calculate."

What these opinionators should have acknowleged and calculated is the owners of US corporations who pulled jobs away from US workers and sent those jobs to foreign lands. They want US workers to compete with child labor, grossly underpaid adults, no laws pertaining to the evironment or worker safety in massively undemocratic nations.
That's what happened to "lost manufacturing jobs." And it's been going on since the 1970s.
Tell the truth, please someone - stop the ideological bs.
Posted by affordablecomputerguy@...
Updated - 17th Jan
-1 Votes
+ -
Have you ever bothered to think?
Jobs are not sent to other countries, for the sheer joy of it.

A company that can produce and be profitable at the same time, won't have to go overseas. A company that might have to close shop because the business environment is too expensive to operate in, won't be sticking around if they can send operations overseas and still survive.

Plus, jobs aren't entirely eliminated when a company sends it's production capabilities to overseas providers. Those goods do come back into the country,and they have to be distributed and sold, thus, the retail side and all of the other incidental jobs, will still be around. Sales of computers, for example, are not made to Americans from China directly. Those computers and tablets have to be imported, and then sold through distribution and retail channels.
Posted by adornoe
18th Jan
+1 Vote
+ -
What happened over 50+years
You are not going to read this, union member, machinist(USSteel, apprent.), BS in Edu., worked as planning proceesor, and knows history. The US was sold a bill of goods in the 60's, lets help other countries standard of living, by sending work overseas, and supporting Democracy overseas, with new industry.This was with tax breaks, loans, and at times forcing US companies to buy imported products, (Poland &GE). The unions work with companies to train thier workers (const. unions) apprententiceship=2 years of college.As for jobs in retail go work for Wal-mart with out going on public aid, medical or any other government programs. Forgrt your MBA go out and talk to retired workers , unions and study history in the past 80 years.
Posted by Frankblvdr
19th Jan
+1 Vote
+ -
STEM
Since the 1990s our Foundation has used the letters STEM to signify Science, Technology Engineering and Manufacturing. The reason, because the latter is the end of the other three processes. I hope that industry and academia will start using this notation and supplant maths with Manufacturing as we have to get into the frame of mind fast of what constitutes the finished product. We may all needs maths but we certainly need high-tech manufacturing far more to secure a dynamic economic future in the West. We saw this pre-requisite over 20 years ago but few others did. It is critical that the West now concentrate on the word manufacturing with the huge threat from the growing economic might of the East (something else we warned western governments about but all they could see then was opportunity).

Dr David Hill
Chief executive
World Innovation Foundation
http://www.thewif.org.uk
Posted by bettysenior
19th Jan
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