Are there manufacturers in the United States who still retain proprietary advantage in terms of production processes?
Obviously there are still some big names in American manufacturing. Boeing is one. Intel is another. … But Boeing is being rapidly hollowed out. Boeing has gone completely global. It is sourcing from all over the world. The next Boeing plane, the 787 – to be launched in a couple of years, will be more Japanese than American in its production. Intel’s an interesting case because its success is based not so much on manufacturing expertise as on control of a standard. It is, no doubt, a capable manufacturer. But its manufacturing expertise is not the critical element of its success. Contrast that with Toyota, which is successful and highly profitable not because of any one or collection of patents. It’s successful because it does the manufacturing process better at virtually every level. Q: Isn’t the low cost of labor in places such as China really the cause of competitive imbalance in manufacturing? If so, is the hollowing out of American manufacturing inevitable? A: If you are suffici
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