Constructive gadfly
Published on September 12, 2004 By stevendedalus In Business

The general conservative posture on outsourcing being good for the economy is defended by the balance of insourcing. It is true that many foreign automakers have been compelled to assemble their automobiles in union-free zones of the US. Seldom, however, are they actually manufactured here — essential parts for assembly are imported. There is no question that the automobile industry has improved because of Japan, Korea and Germany stressing quality. Conservatives like to blame the old time auto workers of Detroit because of their slipshod work. In reality, it was management that continually pushed the envelope in the ‘70s for bigger cars in face of the energy crunch and allowing Japan to make inroads with their economy cars.

Had management met this foreign challenge head on by going back to the drawing boards of the past during which 60 to 95 hp engines were the norm and upgraded them for the era, foreign imports would have been stifled. By then, however, the handwriting was on the wall that foreign competition would diminish the power of the unions, which would fearfully go along producing gas-guzzling American cars while yielding to layoffs.

In the ‘30s-‘60s seldom were heard the cries of slipshod American products; on the contrary, the American worker was the very best and actually during WW II saved the world. The only cries heard were which was better the Lincoln or the Cadillac, or the Chevy in relation to the Ford. In other areas, consumer decisions boiled down to General Electric or Westinghouse, Philco or RCA; and in retail, Woolworth, A&S or Macy’s, all of which carried American products.

Many seem to think that imports have actually raised the level of consumption; it is argued, as an example, that without cloning overseas, PCs would still be untouchable for the average consumer. That’s what was said in the ‘30s: that the masses would be stuck with their iceboxes as prices on refrigerators would never come down by the ‘40s the ice man never cometh.

It is tragic that we have lost faith in American ingenuity and labor.

      

Copyright © 2004 Richard R. Kennedy All rights reserved. Revised: September 12, 2004.

http://stevendedalus.joeuser.com


Comments
on Sep 13, 2004
"It is tragic that we have lost faith in American ingenuity and labor."

It most certainly is.



on Sep 13, 2004
Steve: Nice article with a different perspective on this 'outsourcing' business. Your talking about imports brings something to my mind.

My colleague was visiting the US towards the end of 2001. He came back and presented me with a tie pin that carried the stars and stripes. I turned this pin back and what did I see etched on the reverse--"Made in China". That's the height of outsourcing for us all.
on Sep 13, 2004
Having read about the American auto industry decline, it's hard not to put the blame squarely where it belongs: at the feet of management.

The American worker, (or any other worker, for that matter) are usually willing to work hard when the right systems are in place. It's interesting, and telling, that the "guru" of the Japanese car industry, was none other than an American statistician, Dr. Edwards Deming. In fact, to receive the "Deming" award for quality in Japan is still considered highly prestigious.

I wish I could say that things have changed over the years - I thought that after all the years of the Japanese vehicles (and this means, in most cases, vechiles built in America, by Americans, but using Japanese management ways) taking it to the American manufacturers, that they'd go and benchmark the Japanese management systems and style, and copy it from the boardroom on out to the shop floor.

The quality would then be replicated in their vehicles. Unfortunately, not true yet. Bought a 1996 Ford Taurus, owned it for four years, costing me some $8,000 in repairs over that period. Finally had it, threw in the towel, bought a Toyota, and vowed "never again" to American vehicle. I guess Consumer Reports says it all: Used car "Good Bets" page filled with Japanese vehicles, and "Cars to Avoid" page almost all American.

Page of Fame and Page of Shame, I call it.

Thanks for the article, sdd

JW



on Sep 14, 2004
Yes, it's so heart-wrenching to have to admit the decline of American industry. Rosie the Riveter must be in tears. 
on Sep 15, 2004
Rosie the Riveter


She changed the world, eh?
on Sep 15, 2004
And saved the world, too!