President Obama – Take Me To China
I’ve been reading about President Obama’s trip to Asia over the past few days. Both Republicans and Democrats have promised bringing jobs back to the U.S. and reinvesting in existing buildings since I was in high school. Therefore, I’ll assume jobs and the economy are “top of mind.” I imagine the President brought along Robert Gibbs, several other staffers, maybe a chef or two. Excuse me Mr. President; there is one person who you forgot to invite – ME!
Why take a guy whose primary residence hasn’t changed by 15 miles his entire life? Why take a guy who could easily be stereotyped as ignorant to world affairs due to living in Cheeseland? The President should invite me because I can give a non-partisan view. I’ve been to and worked with Asian factories and seen the drastic differences between current American industry and industry in Asia.
I was very fortunate to work for a wholesale/distributor in the area. I was a tool buyer. Frankly, it was a cool job and I learned a ton about the industry and the real business world.
I can boil down my assistance to President Obama on his trip to one hand tool: A hammer. Sounds simple, but that hand tool has forever changed my mind on the landscape of industry in America.
My first visit to a hammer factory was in 2000 in Rockford, Illinois. I was excited to see the process, technology, and people. As I pulled up to the building my vision of a hammer factory and reality were completely different. The building was unassuming and the offices and conference rooms were something out of the 1960’s. No big deal, I thought since the office isn’t where the magic happens. My vision of “coolness” was still in mind as I popped on my safety goggles and headed to the factory. Again, reality smacked me in the face. I was expecting dirty. Heck, it’s a foundry – they are making steel hammers for goodness sake.
As expected it was dirty. The unexpected was the lack of “newness”. It was like I was looking at a photo of industrial times in the early-to-mid 1900’s. The company did what it had to do to stay competitive. The machines looked old, tired. The process was still impressive but it seemed like a process that hadn’t changed in 50 years. Walking out of the building I had a different perspective.
Shortly after that visit my boss told me we’d be traveling to Mainland China and that a hammer factory would be on the agenda. OK, what was a Chinese factory going to look like if our own “Made in America” facility was adequate to say the least?
As I landed in Shanghai on September 10, 2001 (more on that later) I wondered what I would see? Hand-made products, low-income workers, and dirty working conditions, right? What I saw ran the gamut of great to awful working conditions but one thing that was impressive, yet depressing was a hammer factory just outside of Shanghai. As we drove up to the facility the building was impressive – a new joint venture with an American company and a Chinese manufacturer. The factory was state-of-the-art. Aside from one portion of the foundry I could have eaten my tofu and cow stomach lunch off the floor. No exaggeration. Technology was everywhere. The precision was mind-boggling; certainly there was something more being built than hammers – nope. Working conditions were top rate. Of course, labor costs were much lower. This place was the future of hammer technology. I thought traveling 30 minutes would satisfy my vision of a hammer manufacturer. Unfortunately, it was the trip to China that confirmed the future.
Upon my return I was watching a political debate on the future of manufacturing in America on one of the Sunday news programs. “We need to bring those companies back to the buildings they left”, one Congressman screamed. I distinctly remember leaning over to my wife saying, “They have no clue. Why would a company come back to America and antiquated technology and buildings? After what I just witnessed we are in trouble!” The politicians aren’t walking the walk. Heck, they aren’t even crawling the crawl. It isn’t just one party – it’s every party. Feel good ads, political speeches – I shake my head.
Sure, our current situation is a lot more complicated than a hammer, but this is only one of many examples seen by this Janesville Gen-X’er. I’m an admitted cheerleader for this community. We need more cheerleaders, but we also need an action plan. Will candidates Barrett, Neuwmann, or Walker have THE plan? No. They won’t. Their speeches will talk about what they are going doing to fill the buildings and create the jobs but do they REALLY understand? IMHO – No.
It will take us, the citizens of Janesville, Beloit, and Rock County to come together and figure it out. While Rock 5.0 isn’t the magic bullet, the people involved and the concepts they’ll be sharing is more reassuring to me than listening to election speeches. Several members of the board have walked the walk and employ hundreds to thousands of people in Rock County and throughout the Midwest.
Kudos to those involved in Rock 5.0. You’re going to make a difference. As for President Obama – once you step out of your 5-star hotel and finish glad-handing the leaders in Asia, I can give you directions to a few factories so you can have a “real perspective.” Better yet bring me along next time and I’ll give you the tour. Maybe we can start in Janesville.
Steve Knox was born, raised and landed back in Janesville. He encourages you to participate as he writes on Janesville and beyond as this Generation X guy supports his Janesville mission, global vision. Steve is a community blogger and is not a part of Janesville Gazette staff. His opinion is not necessarily that of the Janesville Gazette staff or management.
Nov 18, 2009 at 7:19 p.m.
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Mr. Knox writes a good, and passionate article here.
He (and others) should really focus more on the root of this whole problem, and that is the currency manipulation between the US and China. That is truly the root of all problems, and why we have this unbelievable trade deficit. As the US dollar gets weaker and weaker (because of horrible Fed "free money" monetary policy, but that's a whole other discussion) that in theory would at least allow us to get that trade deficit more in balance. As a weaker dollar, of course, means that other countries pay less for US products because of the exchange rate. However; China has shrewdly tied their currency to the dollar to artificially keep their own RMB weak. On top of that they have made trade deals with us, that do not allow our products to compete in their markets.
Their is very little we can do about it at this point; as they hold all the leverage over us now via the mass trillions of treasury notes they hold of ours. The problem is long past fixing at this point. Simply years of governmnet incompetence that is in the process of destroying the American citizen, and worker.
Nov 18, 2009 at 10:14 a.m.
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- Very thoughtful piece Mr. Knox – By the by, we are two generations apart. I remember a very different America than we have now, for better or worse. What you are talking about here is the “new norm” for America. I have screamed about this for years to deaf ears. I am not surprised you have few comments on your observations. It is overwhelming for people to try to understand we are being relegated to a Second World country. For what it is worth, let me repeat myself. I will probably still be mumbling it when I live in a card board box – poetically, most likely made with cardboard from China.
We now live in a culture where if you are lucky enough to have a job, it is probably non-benefit; with no pay increases in the foreseeable future; less hours; minimum wage; seven day a week work-weeks at four hours a day wrecking the whole week for 28 hours of pay; fraught with nepotism and cutthroat networking (favoring relatives and friends – with human resource’s blessings); and finally, relentlessly buying of Chinese junk products probably for the rest of our lives.
Until America and Wisconsin come up with new products to manufacture like has happened in so many other decades of change, I fear this “new normal” of bottom feeding is here for a long, long time. And, even if we reinvent ourselves with a new miracle product for the world, the Chinese will most likely steal it.
You have ventured into analyzing the “new normal” of America Mr. Knox – proceed with the utmost journalistic caution; you have ventured off the socially approved opinion road, beyond the literary road signs and guard rails.
Bob Keith
-humble and obedient citizen -
Nov 18, 2009 at 9:48 a.m.
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Mr. Obama will never understand the needs of true Americans. BTW I can call him whatever the heck I want, so can you. He is not my president. (This should get the lefties going although it was their quote for 8 years)
Nov 18, 2009 at 2:42 a.m.
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Hu Jintao, and company, must have been laughing with one another non stop after this visit with Obama. They know they have the US over a barrel. They may have pulled off one of the biggest scams ever in currency manipulation by tying their currency to the US dollar. Now they can beat us to death with a massive trade imbalance, out source all our manufacturing jobs, and finance all our reckless spending and debt. They pretty much hold all the cards over us at this point, and have all the leverage.
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In the words of their great military general/strategist Sun Tzu: "Let your plans be as as dark as night, and then strike like a thunderbolt!".
Just wait till they strike! It will not be pretty.
Nov 17, 2009 at 6:29 p.m.
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It's President Obama, nemesis...not Mr. Get over the loss and show some respect for our leader.
(That should get the righties going!)
Nov 16, 2009 at 9:44 p.m.
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And while you're at it - please tell Mr. Obama to stop pushing for taxation, laws, regulation, and punitive environmental restrictions which make it profitable for companies to move to other countries.
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