Home-grown expansion

Modern Applications News, August, 2008

North American manufacturers consider the U.S. the most desirable country for expansion during the next three years, according to a survey released by the National Association of Manufacturers--NAM, The Manufacturing Institute, the Canadian Manufacturers and Exporters--CME, and Deloitte.

The largest number of North American companies--44 percent--reported they intend to expand production in the U.S. over the next three years; 57 percent of U.S. manufacturers say they will become more globally competitive during the next five years across the supply chain from sales, marketing, and customer service to engineering and information technology.

The news, however, is not all rosy. The survey shows concerns that manufacturing companies want government to address.

Nearly 80 percent of respondents identified tax cuts for manufacturers as the key factor promoting innovation and research and development.

Top Barriers to Competitiveness

[Percent of respondents indicating significant or extensive barrier]

Labor cost                     71%
Work rules                     66%
Tax policy                     66%
Government bureacracy          65%
Raw material prices            56%
Availability of skilled labor  51%
Labor policy                   51%

Source: Deloitte Research, based on the "Made in North America"
Survey conducted by Canadian Manufacturers & Exporters, Deloitte
Touche Tohmatsu member firms in Canada, Mexico and the United States,
the National Association of Manufacturers and
The Manufacturing Institute.

Note: Table made from bar graph.
Competitiveness Today and in 5 Years, Relative to Primary Competitors

[Percent indicating]

        Less competitive  More competitive

Canada     18%    13%        34%    46%
Mexico     20%    12%        31%    49%
USA        13%    11%        41%    57%

Source: Deloitte Research, based on the "Made in North America"
Survey conducted by Canadian Manufacturers & Exporters, Deloitte
Touche Tohmatsu member firms in Canada, Mexico and the United
States, the National Association of Manufacturers and
The Manufacturing Institute.

Note: Table made from bar graph.

The survey, Made in North America, reflects the views of 321 top-tier executives in a broad range of North American manufacturing companies of all sizes. The majority of companies represented in the survey--45 percent--are based in the U.S.

The survey is available at www.nam.org/northamericansurvey.> In other news from the National Association of Manufacturers, association representatives said expanding America's nuclear capacity is critical to creating essential, high-wage U.S. manufacturing jobs and will help meet the nation's growing energy demand.

A white paper, Job Creation in the Nuclear Renaissance, examines the potential for job growth for existing and future nuclear power plants in the next decade. It was released at a joint news conference held by NAM and the Clean and Safe Energy Coalition.

"The U.S. has not built a nuclear plant in decades," John Engler, NAM president and CEO, said at the news conference. "The technical knowledge to construct and operate plants and to design and manufacture key nuclear components is retiring with the baby boomers, and America does not have the necessary skilled workers to replace them. A nuclear renaissance can not happen without robust investment in the education and training of America's current and future workforce."

The white paper can be downloaded at www.cleansafeenergy.org.