In 2024, the workforce in China totaled more than 777 million people.

In 2024, Taiwan had approximately 11.5 million employed persons; 143,100 of which worked in the highly skilled semiconductor chip sector.

In 2024, the United States had appropriately 159 million people employed and about 7 million unemployed; unfortunately, the unemployed were without a skill set 🙁

The process of encouraging the growth of new industries and revitalizing and or modernizing existing manufacturing entities is a concept with virtue. That said, in my humble opinion, widespread across the board tariffs cannot accomplish the task — so please digest this op-ed with cautious and complete deliberation.  

Regardless, we should be aware that the US once dominated the manufacturing world!  By the Second World War’s end, the US was the king of production, for example in 1945, more steel was produced in the state of Pennsylvania than in Germany and Japan combined. The glory days of ‘Made in America’, ran well into the Cold War era – but then, the American miracle lost its way.

Between 2000 and 2010, nearly six million jobs in US manufacturing were lost, with textile and furniture sectors taking the biggest hit. During the interim, US manufacturing output only grew by a ½% per year between 2000 and 2007, and during the global financial crisis of 2007–09 US manufacturing fell by a whopping 10.3%.

By 2015, the US ran a trade deficit of 832 billion dollars in manufactured goods, by 2017 the total had reached a 110 billion dollar deficit – a figure that has continued to grow since 2002－a shocking state of affairs, considering how many advanced technologies originate in the US.

Bottom line, over the past 50 years, manufacturing’s share of gross domestic product in the US has shrank from 27% to 12%, and the starting point of the decline began long before the 21^st Century.

Sooo, who’s to blame?－China? Mexico? Japan? Germany? Globalization? Robots? Inferior products? Politicians? Republicans? Democrats?  Truth is, the blame for the US’s decline in manufacturing falls far and wide among all of the above.

One view holds that following WWII because US manufacturing entered the Second World War so far ahead of the ‘competition’－by its end the US was running laps around other nations in both Europe and Asia. As a result, the whole focus for the US innovation system shifted to ‘early-stage R&D’. Quality products and production was the last thing far too many US manufacturers were worried about. This was especially so for the US Auto industry.

In-other-words, much like the story of the Turtle & the Hare, while resting on their laurels, US manufacturers lost the lead as post-war Germany and Japan were busy, busy, busy rebuilding their industrial bases to counter mass unemployment.

Regardless, the expression “what’s done is done” which signifies that past actions cannot be undone and it’s best to accept them and move forward applies to the current situation.

And today, industry is hesitant to relocate to the US primarily due to higher labor costs, complex regulations, and a less developed industrial supply chain compared to some other countries, most particularly, China. And too, the cost to ‘re-shore’  manufacturing can be significant, and the time it takes to re-establish a strong domestic production base can be substantial－as not in months but years!

A brief ‘overview’ of such drawbacks follow:

High Labor Costs:

It’s a well known fact that the US has high labor costs comparatively speaking. Particularly in countries where manufacturing is prevalent, such as China, Japan, Germany and or India. This basic fact makes production in the US much less competitive.

Complex Regulations:

And, US regulations regarding labor, environmental protection, and safety are stricter than those in the countries noted in the paragraph above. This invariably adds to the cost of production too though loss of ‘life and limb’ is notability lower within the US!

Incomplete Supply Chains:

The U.S. lacks a fully integrated supply chain for certain products, making it difficult to source the necessary components and materials domestically. In-other-words, the US transportation sector is lacking.

Time and Cost of Re-shoring:

Re-shoring manufacturing can be a complex and lengthy process involving the development of new infrastructure, training workers, and establishing new supply chains. This can be expensive and very time-consuming.

Additionally:  

Market Preferences:

While some consumers may prefer goods labeled “Made in America” due to perceptions of quality or ethics, unfortunately this is not a universal preference, and price will always be a major factor.

Electric Power:

A major drawback few have considered includes the necessary construction of huge amounts of new energy that would be required to ‘feed’ new infrastructure. Perhaps a half dozen or so nuclear power plants could fill the projected shortfall－trouble is, most Americans are against building nuclear in their neighborhood. Regardless, we cannot meaningfully increase our manufacturing output without more  power.

Finally, Tariffs:

Tariffs on imports can make foreign manufacturing less attractive, they can also increase costs for domestic producers who rely on imported materials (component parts) for in-country manufactured products such as  automobiles and or computers.  

For the above styled reasons and many more, you need not be surprised when over-seas manufacturers do not re-shore or set-up for production in the US.

To start manufacturing within the United States, a company needs to make a very, very large investment. They must buy new machinery and if no existing building is suitable, they have to construct a new one. These things cost money, a lot, in fact. And significantly more in the USA, than they do in other countries like Mexico or Vietnam for example. In exchange for this risk, there must be some reward. If that reward is uncertain or lacking, no one will even consider it!

Simply put, a U.S. labor force does not exist to make the products for everything the U.S. “needs” to manufacture domestically!

Not only a strong work ethic drives successful industrialization, it requires know-how, skilled workers, and commitment combined with top notch infrastructure. The ugly truth is that this rare assemblage makes China the most powerful manufacturing country in the world today (2025) which began with the so called “Five Year Plan” way back in 1953 introduced by Mao Zedong who led the founding of the People’s Republic of China in 1949.

Back in 2021 there was over two billion skilled workers making stuff in China. As of right now (April 2025) the U.S. is currently experiencing a labor shortage, with 8 million job openings and only 7 million unemployed workers. The percentage of skilled unemployed workers is an unknown though odds are good the greater part of America’s unemployed are un-skilled and will require training.

Sooo, ignore for a moment the comparative inefficiency of labor and the billions of people capable of making products outside of mainland China, Japan or Germany－where are the people that are going to fill the new jobs in new US factories?

It’s doubtful if you say “make America great again” 3 times real fast, such workers will somehow appear with the skill sets needed to fill the jobs－do ya think? Me neither 🙂 🙂 🙂  

Yep, it’s completely and totally unrealistic to assume that productive industries located in other regions of the world will pick up and move to the US anytime soon just to capture the buying power of the American consumer.

Though the US market, with its vastness, remains a major force, its dominance is currently being challenged by growing global economies beyond China. A few examples include the European Union, Japan, Canada and India. Emerging markets such as Brazil, Russia, South Africa, Indonesia, Turkey, Vietnam, Cambodia, Bangladesh and Mexico must also be considered.

On another front, currently the United States is trying to bring back a number of jobs that China doesn’t even want－they’ve already outsourced many of them to other developing Asian countries. Ranging from skivvies to socks to artificial Christmas trees; yet, here we are applying huge tariffs to bring back such low wage jobs to the US. It’s incomprehensible! Do you really think anyone could convenience enough American workers to produce just the socks consumed by the sports programs for the 377,000 schools located across the US at a competitive price?－didn’t think so.

You see, the US imports the vast majority of its clothing! 97% of the clothes and shoes sold in the US are imported, predominantly from Asia. China is the largest single source of U.S. apparel imports, followed by Vietnam and Bangladesh. While China remains a significant supplier, its share has been declining as other Asian countries like Vietnam and Bangladesh have increased their production.

Ideally, America’s top 10 imported products or categories that should be produced domestically include the following of which some may warrant controlled purposeful tariffs . . . There  is a reasonable possibility that 6 of the 10 can be successfully “Re-shored to the United States within 10 to 15 years:

1. Atypical Machinery:

The US imports a significant amount of machinery, including computers and computer hardware such as semiconductor chips. Yep, can you believe it, Computer Chips are considered hardware!

And Semiconductor chips are incredibly important because they form the fundamental building blocks of most modern electronic devices and technologies. They enable miniaturization, increase efficiency, and enhance use-fullness or functionality of everything from smartphones and computers to autos and medical equipment!