Monday, September 5, 2011

Nice Labor Day analysis of the state of manufacturing in the US (GOOD!) and the state of manufacturing jobs in the US (NOT GOOD)...How can this be possible? Short video says it all...

Look at the red line in the first graph---it shows the change in US manufacturing jobs since 1939. It does not seem dramatic, because the time frame is extended. The high appears to be in 1980 at about 20 million jobs and the low currently of about 11.5 million jobs---roughly a 43% decrease!

Note the rate of increase in "service" jobs (blue line) starting in about 1983---the slope increases significantly.  That is a point of divergence for manufacturing vs service jobs.

Does this mean at this time we started to lose manufacturing capability/productivity?
Source: BusinessInsider
The graph below seems to tell a different story.  While EMPLOYMENT in manufacturing has declined (red line), manufacturing OUTPUT (dollar value of finished goods in this case) increased rather dramatically (blue line).  As we moved from the mid-1980's into the 1990's the change in employment vs output changes dramatically from a direct relationship into an indirect relationship.  How/Why did this happen?
Source: Carpe Diem

For a hint, watch this short video of a BMW facility. Tells you all you need to know...
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