America’s economic engine is compromised. Forces at work over the last 30 years have sapped our nation’s vitality. What more can we do?

One answer to that question might be: “Nothing” . . . just let nature take its course.

By that I do not mean that tax credits for research, capital improvements, and hiring and training will do much to turn things around. And tax relief for hardship caused by foreign competition merely exacerbates the problem. Rather, it is an acknowledgement that foreign sourcing is not necessarily all that it is cracked up to be.

Say you make the decision to buy product from a factory in the Pacific rim. Maybe you close your U.S. factory or maybe you don’t. The product looks good, the quality is acceptable and the price is right. It’s like driving out of the showroom with a new car, and life is good.

However, just like that new car, your global sourcing arrangement does not stay “new” for very long. Inflationary pressures on product cost are relentless: workers want more money and benefits, worker productivity may be low, rework and reject rates may be high, timeliness of delivery may be erratic, transportation and fuel costs trend higher, inventory investment levels increase, and communication, command and control costs may become a burden.

In addition, if you have a product quality issue that requires a part change, who will eat the cost of the “defective” product in containers on the water, and the defective work-in-process at the factory, and any defective components on order with foreign subcontractors?

Every outgoing tide eventually turns and flows back. The forces that took work and jobs away from the U.S. will one day abate, and the work and jobs will return. Trouble is, this natural process is just too slow. The manufacturing sector needs help to heal itself.

[Post 16 of 21]