Make It in America: The Case for Re-Inventing the Economy: Solutions for Reviving the U.S. Manufacturing Sector
American manufacturing is at a crossroads. The manufacturing industry was once the bedrock of the U.S. economy. Production was responsible for 28 percent of GDP in the 1950s; now it makes up less than 15 percent. In 1975, the U.S. was exporting $12.4 billion more goods than it was importing. However, America now imports a stunning $360 billion more than we export, and the country’s trade deficit has doubled since 1999.
These are just some of the sobering facts presented in Make It in America: The Case for Re-Inventing the Economy (Wiley Publishing, January 2011), a clarion call to industry and policymakers for the revitalization of America’s manufacturing sector as part of a globally competitive 21st century economy.
Captured through the voice of Dow’s chairman and CEO Andrew Liveris, the book provides a comprehensive set of practical policy solutions and business strategies that, taken together, offer a roadmap toward a more prosperous future for the United States.
“We used to make things in this country. We were the dazzling innovators, undisputed world economic leaders, and with our manufacturing engine driving the process, we built a solid, high-achieving middle class and thriving economy,” Liveris explains. “Now, thanks to policies that are either indifferent to manufacturing or, in fact, downright hostile, we’re at the brink of losing it all. There are many rationales for why the U.S. manufacturing sector has lost jobs since the 1970s, but they boil down to one simple reason: The world changed – and America’s policy approach did not change with it. The U.S. manufacturing sector is at a critical juncture and the dialogue about its future must take center stage.”
The core of Make It in America is the product of policies, priorities and solutions developed by Dow employees and the embodiment of the Company’s focus on reviving manufacturing. Detailing Dow’s philosophy and actions with examples from across the industrial world, the book reflects ideas that Dow leaders first introduced into public discourse in 2004 and, more recently, through the Company’s Advanced Manufacturing Plan.
“Across the world, countries see that manufacturing is synonymous with opportunity. Yet too often, Americans view manufacturing as a thing of the past identified by lost jobs, closed factories and a struggling middle class,” said Liveris. “I believe manufacturing must be an essential part of America’s future – and Dow will be a leader in that future. Even today, manufacturing employs nearly 13 million people in the U.S. and 6 million in related fields. No other sector performs more R&D, drives more innovation, exports as much, or contributes more to the U.S. economy.”
“The future lies with semiconductors and microprocessors; wind turbines and solar cells; advanced batteries and state-of-the-art medical devices. That is manufacturing. That is the future.”
Make It in America presents a comprehensive approach for revitalizing U.S. manufacturing long term, addressing a range of policy issues:
- New infrastructure: From roads, bridges and rail (passenger and freight) to the country’s aging electrical grid and over-taxed I/T and telecommunications infrastructure, the U.S. must invest more in building and maintaining its infrastructure and pursue new models to incentivize private-sector investment.
- Cutting-edge R&D: The U.S. ranks low (23rd of 34 major Organization for Economic Co-operation and Development (OECD) countries) in tax treatment of research and development investments. Other countries’ experiences prove that greater R&D investments will result in greater economic growth and worker productivity and a higher standard of living for all Americans.
- Education that leads the world: Recommit to science, technology, engineering and math (STEM) education to develop the next generation of thinkers and problem solvers to address the world’s most pressing problems.
- A pro-trade policy: One that creates a level playing field with both limited tariffs and barriers to entry.
- An alternative energy strategy: Secure the abundant energy that industry needs to stay competitive.
- Regulatory reform: U.S. businesses need a breather from excessive regulation. The EPA alone currently lists 297 regulations that are under various stages of development.
- Tax policies that support manufacturing – not militate against it: In particular, the U.S. should revise its corporate tax system. The U.S. corporate tax rate, once one of the lowest in the world, is now the second highest among the 34 OECD countries and more than 50 percent higher than the OECD average. The high U.S. corporate tax rate reduces investment and leads to lower wages for American workers.
- Reform in civil justice: Needs to support advanced manufacturing and end lawsuit abuse.
“America’s greatest, most productive and most prosperous days are not behind us, but ahead of us,” Liveris said. “Now is the time to take back our future.”
Dow retirees can purchase Make It in America at a Dow Friends & Family discount price of $13.97 (inclusive of worldwide shipping and handling) at www.800ceoread.com/dow or by calling 1-800-CEO-READ (+1-800-236-7323). This offer is valid through Friday, March 25, 2011.
Make It in America is also available in retail bookstores in the U.S. or through online retailers such as Amazon.com. The manufacturer’s recommended selling price is $24.99.
NOTE: The Dow Friends & Family discount can be applied ONLY to purchases made online or by phone through 800-CEO-READ.
If you have questions about Make It in America, please email us at FMAMIIA@dow.com.