Just How Important Is Manufacturing? – Willy C. Shih – HBS Faculty – Harvard Business Review

Having a strong domestic manufacturing base is vital to the United States maintaining its world leadership in innovation. That is because advanced manufacturing provides an important institutional foundation for learning and developing process skills and capabilities that are increasingly intertwined with core R&D in some of the industries most important to the country’s economic future. These include advanced and specialty materials, biologics, nanotechnology, and precision mechanical devices.

Since joining the Harvard Business School in 2007 (after a long career at IBM, Kodak, Silicon Graphics, and other companies), I have visited hundreds of factories. They include ones that produce a million notebook computers a week, a significant proportion of the world’s ibuprofen and acetaminophen, sophisticated biopharmaceuticals, microchip engine controllers for 40% of the world’s cars, key components for iPhones, commercial jet engines, scientific instruments, heavy construction equipment, tools for making semiconductors, and solar panels.

With the exception of two jet-engine factories and two plants that make heavy equipment, all were located outside the United States. If that surprises you, you’re not alone. Most Americans have no idea where the stuff they buy comes from and don’t appreciate how much of the U.S. manufacturing base has disappeared.

via Just How Important Is Manufacturing? – Willy C. Shih – HBS Faculty – Harvard Business Review.