Much is published about currency manipulation, unfair trading practices, and low cost offshore labor as primary reasons for the large loss of high paying manufacturing jobs in the USA. One thing rarely mentioned is the concept that the introduction of computer controlled machines and automation have had a significant impact on USA companies need for manual labor. Requirements for labor today are far different than in days past as manufacturers now need higher skilled people, but less of them. Special interest groups often look for easy targets when determining the reasons for job losses, but the bottom line is that in many cases, companies need fewer people to do the same amount of work as before. And as labor costs continue to climb, it’s the first place a manufacturer will look to reduce his overhead expenses.

Paul Ziegenhorn
President