Why manufacturing still matters
date: September 24, 2008
SOURCE: Detroit Free Press
By: Bill Ford, Executive Chairman, Ford Motor Company
Over the years, I've gained a
reputation as being outspoken about environmental issues. I'm proud of
that reputation, and happy to see the efforts to address these concerns
are accelerating. But there is another critical issue that I've also
talked about for many years, with more mixed results: the importance of
manufacturing to local, regional and national economies.
I've
given what I call my "manufacturing matters" talk all over the United
States, including a number of times in Washington. My main message is
that manufacturing in general, and the auto industry in particular, is
a major contributor to the economy. It provides jobs and tax revenue,
furthers research and education, creates new products and technologies,
promotes overall prosperity, and is critical to national defense.
Unfortunately,
this message has not resonated. There is a sense that manufacturing
does not matter in the Information Age. Even those who are alarmed by
America's dependence on foreign oil seem indifferent to our growing
dependence on foreign goods.
Other
nations where Ford does business value and protect their manufacturing
sectors. They do all they can do to help their industries. What I am
suggesting is that our government should work to create business
conditions in which winning is possible and losing isn't inevitable.
In
recent years, U.S. automakers have been taking tough actions to improve
our competitiveness. Unfortunately, the U.S. auto industry is being
battered by a perfect storm of economic setbacks that are causing sales
to plummet to their lowest level in more than 20 years.
As
a result, Ford is undergoing its most rapid and far-ranging
transformation since we switched to wartime production at the start of
World War II. We are converting three existing truck and sport utility
vehicle plants to build small cars. We are adding four-cylinder engine
capacity to meet growing demand and expanding production of EcoBoost
engines, six-speed transmissions and other fuel-saving technologies.
In World War II, we built the Arsenal of Democracy. Now we are building the fuel-efficient Fleet of the Future.
The
United States remains the world's largest manufacturing nation. Despite
everything that has happened, the automotive industry remains the
single largest manufacturing industry here. No other industry generates
more manufacturing employment, trade, research and development, and
retail business. But we can no longer afford to take the benefits for
granted.
Conventional
wisdom assumes we live in a borderless world where the location of a
business is irrelevant and the fate of any one enterprise, or even an
entire industry, is unimportant. In theory, someone from somewhere else
can always step in to provide the products desired with no harm done.
The problem is, in the real world, there is harm done.
Factories
are closed, jobs are lost, tax revenues that support universities,
hospitals, social services and local schools are reduced. Over time, as
the strength of its economy is eroded, the quality of life in a city, a
state or an entire nation is diminished.
The
principles of capitalism dictate that these disruptions, however
painful, are good for the global economy in the long run. However, the
principles of self-preservation suggest that rooting for the home team
is not a bad idea.
Our
home team -- America -- can no longer take its economic leadership for
granted. Other countries have strategic plans and carefully thought-out
growth policies. We don't have a plan, and sometimes it seems as if we
don't have a clue.
Our
economy is troubled today and threatened tomorrow. Business-as-usual is
no longer acceptable. It's time for government and business to work
together for a stronger, more secure, and more prosperous nation.
A
good place to start is the Advanced Technology Vehicles Manufacturing
Incentive Program proposed by Congress, which will help U.S. automakers
accelerate their investments in fuel-efficient technologies.
We
also need a meaningful dialogue about what we can do as a nation to
improve our global competitiveness. Fortunately, a forum for holding
this critical discussion now exists.
On
June 15, 2009, America's top business, government and academic leaders
will meet in Detroit at a National Summit hosted by the Detroit
Economic Club. The purpose of this three-day forum will be to define
America's future in an increasingly competitive global marketplace.
Participants will discuss and develop a national economic agenda that
addresses the critical issues of technology, energy, the environment
and manufacturing.
The
National Summit offers a rare opportunity for a cross-functional group
of leaders to tackle our toughest economic challenges. It will not only
provide a platform for discussion, but also a springboard for action.
For the sake of our children and grandchildren, we need to seize this
opportunity and make the most of it.