Companies Say U.S. Manufacturing Too Expensive
Despite an increasingly global marketplace for their products and a sense of cautious optimism as they emerge from the recession, high-tech manufacturers see little chance of meeting President Obama’s goal of doubling U.S. exports in the next five years, a new survey shows.
Sixty percent of high-tech companies said it was “very unlikely” or “not likely at all” that the President’s goal would be achieved. The overwhelming reason, cited by 60 percent of the companies surveyed, was the belief that the U.S. is “too expensive” for high-tech manufacturing. A mere 3 percent of companies thought it was “very likely” that the export goals would be met.
“Input from businesses about the challenges of meeting export goals is invaluable to a better understanding of the problem as well as working to remove barriers to international trade,” said Scott Davis, chairman and CEO of UPS and a member of the President’s Export Council.
“Despite the pessimism in some quarters, I believe this goal can be attained,” Davis continued. “The United States still is the world’s largest manufacturer and it’s been demonstrated time and time again that foreign trade creates U.S. jobs. And when an American company limits its business to the United States, it’s turning its back on 96 percent of its potential customers. This is an issue of economic growth and UPS is committed to helping our customers grow their businesses.”
The stated pessimism about the export goal was one of the more interesting findings in the “Change in the (Supply) Chain” survey, conducted by IDC Manufacturing Insights and sponsored by UPS. The survey targeted decision-makers in the areas of operations, supply chain and logistics and distribution at high-tech companies across the country. It was designed to uncover the biggest business and supply chain issues for high-tech companies and reveal future plans coming out of the recession.
For more information on survey findings and to download an executive summary of survey results, visit pressroom.ups.com.
UPS (NYSE:UPS) is a global leader in logistics, offering a broad range of solutions including the transportation of packages and freight; the facilitation of international trade, and the deployment of advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. The company can be found on the Web at UPS.com and its corporate blog can be found at blog.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS.