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Home / Washington Business - January/February 2007 / President's Message: Ensuring 'Made in America' always means quality |
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President's Message: Ensuring 'Made in America' always means quality |
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Written On: January/February 2007 |
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Written By: by Don C. Brunell, AWB President |
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Remember when "Made in USA" meant quality, and anything else was second-rate?
As a youngster shopping at the local Woolworth’s, I avoided toys labeled "Made in Japan." American-made toys were better and, in my family, we supported American workers.
Things are different now. American-made still means quality, and we still try to support American workers, but there’s not as much made here as there once was. Today, nirvana is having an American assembly plant supplied by as many domestic parts suppliers as possible.
It’s not just an American phenomenon. It’s what the new global economy is all about. Most products these days are hybrids—designed, manufactured, and assembled with little regard for national borders.
In Europe, Airbus jets have been assembled in France for decades. The company gathers parts fabricated in Germany, Spain and Great Britain and turns out finished aircraft in Toulouse, France. Now the embattled aerospace firm is looking to assemble some of its popular A320s, a competitor of Boeing’s 737, in China.
Why? Because assembling airplanes in China will reduce costs—and because China is a growing market for passenger planes.
The same is true for our country’s top automakers. Ford, Chrysler and General Motors are not only buying parts from companies across the globe; they are also locating assembly lines in other countries, as well.
Why? Because the cost to bring cars to showrooms in China, India and other rapidly growing countries is lower when manufacturers assemble their products closer to buyers, thus avoiding transportation and delivery delays.
Even Japanese automakers have responded to global pressures. Toyota is putting the finishing touches on a new plant in Kentucky that will build its new Camry Hybrid. Honda has a joint venture with Dongfeng Motor Corp. to make cars in China, where Honda sold a quarter million cars last year. With its 1.4 billion people and a growing middle class numbering close to a half a billion people, China is now the world’s fastest-growing car market.
Modern consumers—be they major airlines or families in a supermarket—buy products based on price and quality. Successful producers combine both.
The world has changed since the 1950s when my family shopped at Woolworth’s for toys and at the local Chevrolet dealer for our new Bel Air, which was made in Detroit. Today, we all enjoy a wide selection of high-quality, low-priced products from many parts of the world—not just the USA.
Our elected officials must recognize that they cannot mandate our personal buying decisions, and they should adjust our laws and policies accordingly. America’s competitiveness can no longer be taken for granted. It is an elusive goal that must be actively pursued every day.
Lawmakers must be careful to avoid restricting free trade by engaging in protectionism. Such measures don’t work. The goal must be to make our state and our nation as competitive as possible in terms of the cost and quality of our products.
Some were critical of the incentives and cost-control policies adopted by the state Legislature in 2003 to ensure Boeing would choose to build its new 787 passenger jet in Washington. However, lawmakers did exactly what they had to do. Orders for the 787 are now skyrocketing, and Boeing is adding more workers to meet the demand.
Nobody wants to see Ford close 14 plants and lay off 30,000 workers. Layoffs and plant closings are painful to both families and communities alike. But if Ford doesn’t take drastic action and find ways to stay competitive, it will go out of business—and far more people will be devastated.
Government can do their part by finding approaches that help Ford and other American companies compete in the global marketplace. That means lowering costs and regulatory burdens, eliminating frivolous lawsuits, and enacting tax policies that allow American companies to compete and hire more American workers.
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