Prior to the pandemic that hit the economy so hard, President Trump was emphasizing on an era of growth that would be accompanied with regulatory rollback as well as other pro-business approaches.
Bringing American jobs and national security to the equation in the midst of a world-wide pandemic, Donald Trump recently made this statement, “This crisis has taught us a lot of lessons about supply chains. We have learned that it is good to manufacture things in the United States. This is what I’ve been saying all along.”
President added, “One of the reasons I contested for presidency was that I wanted to step in regarding our culture of manufacturing things in other countries instead of home. Now, the pandemic has taught us one big lesson – it’s high time we started making products here in the U.S.”
According to Gary Hufbauer, an economist at the Washington D.C.-based Peterson Institute For International Economics, more politicians are going to join in the clamor to start producing some items right here in the United States, especially medical supplies since it is now clear that supply chains have not been reliable.
But, there’s a limitation to this clamor…
“However, there’s a limitation, which is the labor supply chain in the United State. The people who are jobless right now do not have the right skills for the manufacturing jobs off-shored to China and other countries”, Gary said
Gary added, “So, they have to undergo extensive training programs to acquire the skill for manufacturing work. A high level skill is required for manufacturing job, which can be best acquired via increased on-the-job training.”
Derek of American Enterprise Institute also suggested that the federal government should provide incentives for businesses – such that would motivate them to bring back most manufacturing jobs to the United States. One of such incentives is tax breaks for businesses that will invest in the United States.
Well, time will tell. This call to stop outsourcing jobs to offshore destinations have been on for a long time. Companies are probably reluctant to comply because offshore outsourcing helps them fill skill-set gap affordably. Let us keep our fingers crossed while we await what happens next.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.