Espedillon, Jenz Lawrence P.

Master’s in Business Administration

CASE STUDY:

1. How important is the loss of manufacturing jobs to the nation?

From the title of the article “Why Manufacturing Matters”, we can definitely say that this
MATTERS. The loss of manufacturing jobs is one of the significant issues that should be taken into
consideration by the nation. The two main reasons why there is a loss in manufacturing jobs are
primarily because of automation and outsourcing.
Automation is a great opportunity in every organization. It makes the work a lot easier, it
improves efficiency and it gives the worker an opportunity to cater some other tasks. But it is also a
threat to the economy as it contributes to the increase of unemployment rate. We all know that when
the process is automated, there are few workers needed to maintain the production.
I live in General Trias specifically near Gateway Business Park: and I am very much aware that
there are lot of semiconductor manufacturing companies existing in this place. These companies are
funded by US investors and that is one of the proofs that outsourcing from foreign countries are
happening. As part of their cost cutting method, they will set-up manufacturing companies in the foreign
countries like Philippines because they know that the wages here is cheaper compare in the US.
Outsourcing can minimize their cost; but economically, increases unemployment rate. Through
outsourcing, the research and development as well as trainings are being handed to another nation. It’s
like they are funding someone else to become smarter, it decreases their competitiveness and increase
their competition.

2. Can you suggest some actions the government (federal, state, or local) can take to stem the
job loss?

If I were one of the most powerful officials in the US, one of the first thing that I will do is to align
the taxes. I will increase tariff/taxes for goods imported from foreign countries and minimize taxes of the
local manufacturing companies. With the high tax on import and low corporate tax, these can encourage
investors to set-up their company in the US instead of outsourcing from foreign countries. It will
definitely prevent job loss and create more job opportunities for the local citizens.

3. What evidence is there of the importance of manufacturing innovation?

Manufacturing innovation is very important in every business. We cannot just settle for our
traditional methods and we should always think of a way to automate and innovate processes. Through
innovation, we can minimize the cost while maximizing our profits; we can response greatly to customer
demands and we can improve our product quality. Our modern market is continuously evolving and we
should not let our manufacturing process to be out of the line. It is very important from time to time to
review the existing methods that we have and streamline it.
Innovation is a key component of economic growth and success but it should not be the cause of
increase in unemployment rate. We should always take everything in balance.