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Wednesday, March 25, 2020

2020 U.S. industry does not resemble 1940's.

SPECIALIZATION AND GLOBAL DEPENDENCE

MOST RAW MATERIALS ARE MADE OUT OF THE COUNTRY


Image result for container ships from china


We hear the complaints of politicians, media know nothings and citizens, asking why we cannot up production overnight of anything we desire. Many references are made to WW2 when the U.S. quickly ramped up production of war materials to supply much of the World War effort.

Today's industrial capacity is only a shadow of what it was in the 1940's.

Some examples, many complain we cannot get enough surgical masks, aprons, masks and visors. In 1940 the United States grew the cotton, manufactured thread and fabric of every kind, dyed the material and warehoused large quantities of these materials. We also had sewing factories in every town, Allentown, Bethlehem, Easton, Northampton had thousands of women sewing everyday. It took only days to convert to sewing uniforms, medical protective equipment, back-packs and whatever was needed. 

Today we no longer have any of those factories, we grow very little raw material and doubt that any thread or fabric is manufactured in this country. We still have some clothing manufactures which have very limited capacity, most design the product, and then it is made out of the country. While 3M can make masks, I am willing to bet the elastic and the fabric is made outside the country. Any increase in demand will result in instant shortages.

As for manufacturing of products, every machine shop in the country could begin change over to war good in days, Singer sewing machine, and Remington-Rand, made handguns and rifles. Everyone has similar equipment, lathes, drill presses and machine tools. Most of those tools were shipped out of the country to third world countries in the 1990,s. Today we have specialized equipment designed to make a specialized product. Most of the equipment is for low volume specialized manufacturing and research and development, actual manufacturing on a large scale is sent out of the country.

As far as ordering a company to switch to a product that they are not equipped to produce, it is a joke. We can order them to do do it, that does not mean that they can. Some companies like GM and GE had a history of making ventilators, they may have the dies and tools stored somewhere and can be put into motion. It will take a considerable amount of time. Can they acquire the materials? They will not be actually producing these things in the very near future.

The decisions to move much production out of the country was less regulation, less risk of owning plant and equipment with the accompanying liability. Labor cost were not the only issue, but excessive regulation and over the top union rules.

We can be thankful that our energy and food networks are still mostly made in U.S.A. They are reasonably priced and available. A testament to good old American capitalism.

We will have to get buy on what we have. We will have to make do with what is available in this country. We may be able to put Y's on ventilators to service 2 people at once. Maybe not too good, but maybe better than nothing. Maybe we can jury rig a hand machine with a volunteer to pump it, who knows. Reality is, "You cant always get what you want".






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