Manufacturing: The Engine That Drives the Economy

Press Releases/Letters to the Editor

ERIE – There is no question that the tourism and service industries are essential to our local, state and national economy.

However, a vibrant tourism and service industry is not the reason for a thriving economy; it is a result of a thriving economy.

Manufacturing is and always will be the engine that drives the economy. Without it, tourism and the service economy will be negatively impacted.

China, India and Mexico, along with every other emerging economy, have embraced manufacturing as the basis of their new economies – not the tourism and service industries. These countries understand that manufacturing drives innovation, technology and production, which, in turn, provides for security and a higher standard of living for their citizens.

In the United States, through bad public policy, we continue to drive out manufacturing by imposing non-productive structural costs through taxes, regulations, tort liability and excessive environmental laws. These non-productive structural costs add 31 percent to the cost of American manufactured products, making it increasingly difficult for American manufacturers to compete in a global economy.

American manufacturers also are hindered by the lack of enforcement of trade agreements. Many of our major trade partners do not play by the rules established by the World Trade Organization. It is the equivalent of playing in a football game in which the rules apply to only one team. How can we effectively compete on that basis? The problem isn’t trade; trade is good for our economy. The problem is unfair trade.

China and India, along with other foreign competitors, also have embraced the most essential element to their emerging economies – education. They are now producing world-class mathematicians, scientists and engineers. They have figured out that innovative technology is the gold standard of the new economy and you need a world-class, technically educated work force to effectively complete in the global marketplace.

Today, America is still the largest manufacturer in the world. We continue to be the leader in production, innovation and technology.

The real question is for how long? Equally important – if we lose our manufacturing, will tourism and service industries become the basis of our new economy? Will our standard of living go up or down? Just ask our competitors.