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“Chaos” or Positive Restructuring?
Nearly everyone in logistics and elsewhere is aware of the fact that a new round of tariffs has been unfolding.
Some say it’s nothing but chaos, higher inflation and more uncertainty – but is this true … at least for the longer term?
Only time will tell (maybe six to nine months) and the question is: can we look forward to a better future with a better balance in our current trade imbalances?
Trump ultimately wants to bring back manufacturing. Is this realistic? Some say that there are fewer workers willing to do factory work as in the days-of-old.
As of 2024, the U.S. has about 12.9 million manufacturing workers, down from nearly 20 million at the peak in 1979.
But consider this: there are roughly 300,000 to 600,000 – or more potential immigrants from South Africa that may decide to come to the U.S. If 100,000 to 200,000 took up factory jobs in the U.S., that’s less than 5% of the estimated number of current factory workers in the U.S. Does this have any meaningful impact in regard to recruiting workers back to factories?
Maybe, maybe not.
But good-paying factory work will certainly attract some American “drop-outs”. How many? It’s hard to say but the question is: can the tide be turned toward growing factory workers?
It’s worth a try and here are a couple of reasons why:
There’s a growing sentiment for “America First” and it’s making a change in manufacturing. A growing number of Americans are downright scared with the fact that China has control over most of our pharmaceuticals (and other products). This has to change to ensure more American control and less vulnerability.
With some manufacturing returning to the U.S., we may see a revival in economically depressed areas – there’s still many living in poverty. Trump just announced that U.S. Steel will remain in the United States. This is good for everyone.
As the U.S. retakes more control over manufacturing, it will spill over to issues related to “intellectual property rights”. China is the King of Blueprint Theft. This has to stop.
You wouldn’t believe how much they have stolen from manufacturers, universities and research institutions. You can read about this topic with Michael Pillsbury’s The Hundred-Year Marathon. Or Clive Hamilton’s 2018 book Silent Invasion: China’s Influence in Australia.
There may be other benefits contained in Trump’s broader objectives of protecting national interests, reclaiming industrial capacity, and resetting unbalanced trade relationships.
So, what are your thoughts?