{"id":980,"date":"2020-06-23T16:18:26","date_gmt":"2020-06-23T23:18:26","guid":{"rendered":"http:\/\/savingusmanufacturing.com\/blog\/?p=980"},"modified":"2020-06-23T16:18:26","modified_gmt":"2020-06-23T23:18:26","slug":"manufacturing-generates-exports","status":"publish","type":"post","link":"https:\/\/savingusmanufacturing.com\/blog\/general\/manufacturing-generates-exports\/","title":{"rendered":"Manufacturing Generates Exports"},"content":{"rendered":"\n

The third\nreason why manufacturing is important is that the United States is still a top\nleader in generating manufacturing exports. The U.S. was the world\u2019s largest\nexporter until 1992, when Germany took over this position. The U.S. maintained\na position as the second-highest exporter, until China surpassed it in 2008.\nGermany remained number one until 2009, when China surpassed it to become the\nworld\u2019s top exporter. The U.S. overtook Germany as the second-highest exporter\nin 2014. The latest data for world exports is from 2019<\/a>\nwhen China\u2019s exports totaled $1.8 trillion, down from $2.49 trillion in 2018;\nthe U.S. exports totaled $1.24, down from $1.66 trillion in 2018, and Germany\u2019s\nexports were $1.12, down from $1.55 trillion in 2018. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

According to a 2020 report<\/a> on exports: \u201dThe following export\nproduct groups categorize the highest dollar value in American global shipments\nduring 2019. Also shown is the percentage share each export category represents\nin terms of overall exports from the United States.<\/p>\n\n\n\n

  1. Machinery including\n computers: $205.9 billion (12.5% of total exports)<\/li>
  2. Mineral fuels including oil:\n $199.7 billion (12.1%)<\/li>
  3. Electrical machinery,\n equipment: $173.2 billion (10.5%)<\/li>
  4. Aircraft, spacecraft: $136\n billion (8.3%)<\/li>
  5. Vehicles: $133 billion (8.1%)<\/li>
  6. Optical, technical, medical\n apparatus: $90.8 billion (5.5%)<\/li>
  7. Plastics, plastic articles:\n $64.9 billion (3.9%)<\/li>
  8. Gems, precious metals: $59.6\n billion (3.6%)<\/li>
  9. Pharmaceuticals: $53.6\n billion (3.3%)<\/li>
  10. Organic chemicals: $39.3\n billion (2.4%)<\/li><\/ol>\n\n\n\n

    America\u2019s top 10 exports surpass well over\ntwo-thirds (70.3%) of the overall value of its global shipments.\u201d<\/p>\n\n\n\n

    Manufactured\ngoods<\/a> \u201cmake up more than 66% of U.S. exports\u2026One-third\nof exported goods are capital goods <\/strong>double the level of 20\nyears ago… Only 12% of U.S. exported goods are consumer goods<\/strong>…Just\n8% of exported goods are foods, feeds, and beverages<\/strong>\n($131 billion). The big three are soybeans ($20 billion), meat and poultry\n($20 billion), and corn ($9 billion).\u201d <\/p>\n\n\n\n

    According to\nthe U.S. Small Business Administration, small- and\nmedium-sized enterprises (SMEs) comprised 97 percent of all identified U.S.\nexporters, generated 64 percent of net new jobs between 1992 to 2009, and\nrepresented 31 percent of U.S. export value in 2008. About 65 percent of all\nU.S. exports come from small businesses with fewer than 20 employees.<\/p>\n\n\n\n

    Exports of\nmanufactured goods is important to the economies of most states \u2013 even in those\nareas where manufacturing has declined as a portion of the Gross State Product\n(GSP).  <\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    The\ntop five U. S. export markets:<\/p>\n\n\n\n

    • Canada<\/li>
    • Mexico<\/li>
    • China<\/li>
    • Japan<\/li>
    • United Kingdom<\/li><\/ul>\n\n\n\n

      Both\nPresident Bush and President Obama had the goal of doubling U.S. exports during\ntheir administrations. President Obama even established the Export Promotion\nCabinet by Executive Order 13534 On March 11, 2010 and tasked them with a plan\nto achieve the goal of doubling U.S. exports in five years that he had\npresented in his 2010 State of the Union address.  <\/p>\n\n\n\n

      The National Export Initiative (NEI) Executive Order\nhad five components: improve advocacy and trade promotion, increase access to\nexport financing, remove barriers to trade, enforce current trade rules, and\npromote strong, sustainable, and balanced growth.<\/p>\n\n\n\n

      The NEI identified eight priorities for the plan,\nand the Export Promotion Cabinet developed recommendations to address each of\nthese priorities, which covered all five components, cut across many federal\ngovernment agencies, and focus on areas where concerted federal government\nefforts can help lift exports.<\/p>\n\n\n\n

      It was no surprise to me that the plan to double\nexports in five years was unsuccessful because we are fighting against the\npredatory mercantilism of countries such as China, India, and Japan. The\nbiggest problem is that the United States is no longer the manufacturing source\nfor consumer and household goods and commodities that it once was. American\nbrands such as IBM, General Electric, and Maytag were known worldwide for their\nquality and innovation. These types of products are now being made in Asia,\nmostly in China, and imported by the United States and other countries for\ntheir consumers to buy rather than being manufactured in the United States for\nexport worldwide. <\/p>\n\n\n\n

      The majority of manufacturers that were able to survive the great stampede to offshore manufacturing to China don\u2019t produce a finished product; they are the Tier 2, 3 and 4 suppliers that produce components, parts, and assemblies for Original Equipment Manufacturers. Thus, they don\u2019t have a product to sell for export.\u00a0 I have been representing this type of company as a manufacturers\u2019 sales rep for over 30 years. Most of these companies do not have engineering staff to design a complete product and don\u2019t have the capability to market a product internationally.\u00a0 <\/p>\n\n\n\n

      I\u2019ve been working with inventors and entrepreneurs of start-up companies for years to help them select the processes and sources for their new products.\u00a0 As a director on the board of the San Diego Inventors Forum, I give a presentation of how to select the right processes and sources for a new product as part of our annual curriculum at our monthly meetings in our program of helping inventors go from product design to market. <\/p>\n\n\n\n

      If we want to increase our manufacturing exports, we need to help inventors and entrepreneurs develop their products and get them to market.\u00a0 Additive manufacturing has enabled inventors and entrepreneurs to produce low cost prototypes rapidly here in the U.S. The biggest hurdle is to fund the tooling needed to manufacture their products at production volume levels. For advanced technologies that require research and development, there are government funded Small Business Research Grants that enable small start-up companies boot strap their product development.\u00a0 Perhaps, we can create a grant program for inventors and entrepreneurs to fund the tooling and initial production runs of new products.\u00a0 <\/p>\n\n\n\n

      Remember, Albert Einstein is widely credited with\nsaying, “The definition of insanity<\/strong> is doing the same thing over\nand over again<\/strong>, but expecting different results<\/strong>.” We aren\u2019t\ngoing to increase exports by doing the same things we have been doing for the\npast 20 years.<\/p>\n","protected":false},"excerpt":{"rendered":"

      The third reason why manufacturing is important is that the United States is still a top leader in generating manufacturing exports. The U.S. was the world\u2019s largest exporter until 1992, when Germany took over this position. The U.S. maintained a position as the second-highest exporter, until China surpassed it in 2008. Germany remained number one […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,51,59],"tags":[],"class_list":["post-980","post","type-post","status-publish","format-standard","hentry","category-general","category-manufacturing","category-trade"],"_links":{"self":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts\/980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/comments?post=980"}],"version-history":[{"count":3,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts\/980\/revisions"}],"predecessor-version":[{"id":985,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/posts\/980\/revisions\/985"}],"wp:attachment":[{"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/media?parent=980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/categories?post=980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/savingusmanufacturing.com\/blog\/wp-json\/wp\/v2\/tags?post=980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}