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In the United States
Manufacturing
is the engine that drives American prosperity - it is central to
our economic and national security.
Manufacturing
grows the economy - every $1.00 in manufactured goods generates
an additional $1.37 worth of additional economic activity, more
than any other economic sector.
Manufacturing
invents the future - it’s responsible for more than 70
percent of all business R&D, which ultimately benefits other
manufacturing and non-manufacturing activities.
Manufacturers
compete internationally - the United States is the world's 2nd
largest exporter; 61 percent of all U.S. exports are
manufactured goods, double the level of 10 years ago.
Manufacturing
generates productivity increases - over the past two decades
manufacturing productivity gains have been more than double
(actual figure 2.5 times) that of other economic sectors.
These gains
enable Americans to do more with less, increase our ability to
compete and facilitate higher wages for all employees.
Manufacturing
jobs provide rewarding employment - manufacturing compensation
averages more than $65,000, the highest in the private sector,
and manufacturers are leaders in employee training.
Manufacturing
jobs pays the taxes - business has been an important contributor
to economic growth and tax receipts at all levels of government,
contributing 43% of all corporate taxes collected by state and
local governments.
Yet U.S.
manufacturers are challenged as never before - they are on the
front lines of the most intense global competition in history
where it is virtually impossible to raise prices.
Costs do rise,
often because of what government does or does not do as directly
relates to trade. This is a loud message to policy-makers, to
news media and all Americans and to those advocating
pro-manufacturing public policies.
Manufacturing industries
directly employ 14 million Americans and support 8 million more.
Each American
manufacturing job supports as many as 4 other American jobs,
thereby providing opportunities for countless other industries.
In contrast, each
American service sector job creates between .94 to 1.47 new
jobs.
On the flip side, the
American service industry sector is finite.
The American service
sector is at the lower end of the salary scale.
All servicing is
dependent on the support of a manufacturing backbone for long
term sustenance.
Since 1999, over 40,000
American manufacturing facilities have closed.
The resulting job losses
impact minorities and non minorities.
Between 2000 and 2004, a
study shows that at least 52% (and up to 88%) of manufacturing
workers in selected states who lost their jobs did so because of
trade policies.
The replacement wages for
these workers was found to be far below the wages earned from
their former manufacturing jobs.
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In China
Almost 60 percent of China’s exports come from foreign-invested
enterprises.
http://www.americanmanufacturing.org/issues/china/
Countries like China and Japan effectively subsidize their
exports to the U.S., and place a tariff on U.S. shipments to
them.
TDCtrade.com reports that China’s import
duty level is 9.9%
http://www.tdctrade.com/shippers/vol29_2/vol29_2_chinatrade.htm
By some estimates, China’s Yuan is undervalued by as much as 40
percent in comparison to the U.S. dollar and this manipulations
is taking place on a massive scale.
China’s dramatic industrial capacity expansion and economic
growth have put enormous pressure on world energy markets.
By some estimates, China accounts for roughly 40 percent of the
growth in world energy demand. This has been a factor in
escalating world energy prices in recent years.
The growing
competitiveness of Chinese manufacturers and its fast improving
infrastructure are positioning China to become a “world
factory”.
China is the
world’s 7th largest economy – and was valued at US$1.4 trillion
in 2003.
Manufacturing accounts for 53% of the Chinese economy, amounting
to US$783 billion in value added activity in 2003.
The Chinese
economy has grown at an annual average rate of 7.5% since 1999.
In 2003,
China accounted for 16% of the world’s economic growth.
Chinese
exports amounted to US$380 billion in 2003 and have grown by
900% over the past ten years, giving China 6% of the world
export market.
China
imported US$370 billion in goods from the rest of the world in
2003.
China’s
average per capita income will reach US $2,000 within the next
ten years.
Foreign
investment in China exceeds US$450 billion.
China is the
world’s fastest growing market for raw materials, energy,
consumer products, cars, and electronics.
China
produces over 60% of the world’s microwaves, half of all DVD
players and digital cameras, 50% of it textile production, 40%
or its refrigerators and computers, and a fourth of its mobile
phones, colour televisions, washing machines, dryers, and car
stereos.
China
graduates 325,000 engineers per year. The third largest
university in China graduates more engineers than Canada and the
United States combined.
China manufacturing is becoming very complex and high technology
oriented as it shifts from an assembly base to a full scale
manufacturing center for multinational companies.
Chinese companies are now competing globally in Component Design
& Manufacturing, Surface Mount Technology, PCBs, Network
Hardware, PCs, TVs, refrigerators, auto parts, and much, much
more.
Manufactured goods have replaced China’s raw materials as the
top export item, accounting for more than 80 percent of total
exports.
China is now the fourth largest producer of manufactured goods
in the world. China’s world market share in manufacturing has
grown from 1.4% in 1980 to 7.3% in 2004.
China's exports from outsourcing are expected to grow 45% over
the next five years.
The Chinese government provides continued incentives to both
foreign and domestic companies. Of the top 500 companies in the
world, 400 companies have invested and manufactured in China.
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