NAM study warns of innovation gap
Downward trends in U.S. manufacturing innovation pose a serious threat to America’s long-term economic growth and living standards, according to a new report released today by the Council of Manufacturing Associations and The Manufacturing Institute of the National Association of Manufacturers.
“Our nation can not afford to lose its manufacturing innovation edge and the wealth that it generates throughout our economy,” said Jerry Jasinowski, president of The Manufacturing Institute, at a press conference Feb. 1.
“One bright ray of light is U.S. manufacturing’s tremendous productivity gains,” Jasinowski continued.living standards for U.S. workers. Higher productivity growth also allows for lower interest rates as the economy grows faster without generating inflation.”
The report’s author, economist Joel Popkin, stated:chines,” Popkin continued.
Manufacturing output since the last recession lags that of earlier economic recoveries %%MDASSML%% its 15% growth is only half the pace averaged in recoveries of the past half-century.
Manufacturing capacity remains underutilized, slowing investment in new plants and equipment.
The U.S. share of global trade in manufactured products has shrunk, falling from 13 percent in the 1990s to 10 percent in 2004.
U.S. manufacturing offers rewarding and desirable careers for highly skilled workers.
America’s long-standing leadership in R&D is being challenged.
“If the innovation process goes offshore, America will lose much of its capacity to generate wealth and a decline in long-term economic growth is assured,” Dr. Popkin said.
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Annual Salary Survey
Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.
There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.
But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.
Read more: 2015 Salary Survey