Volume 3, Issue 4 - April, 2004

• Stemming the U. S. Job Losses
About this time every month my mind automatically starts thinking about the next article for “Taking Aim.” Maybe because it is that time of month, maybe because I have been listening to the political rhetoric or maybe because I have been looking at how many readers have read previous articles on International Competition (July 2003). But, for whatever reason, I have been thinking a great deal about the loss of jobs to overseas. It seems sad to me that we live in a sound bite world because the things that come into my mind on this subject, don’t neatly fit into a fifteen second sound bite.
For example: The other night I had a dream about being in another world where horse racing was the primary spectator sport. It was covered by every type of media and was truly “The Sport of Kings.” After many years of competition in their individual countries, it was decided to have an “International Superbowl of Horse Racing. Naturally there had to be an organizing body that was to put together the rules for this engagement. It was an extremely delicate situation with representation from each country involved in the deliberations. Debates raged on for months about the rules for this event. Eventually after much discussion it was determined that each horse and rider would have to compete under the rules of their own country. The country Gagnix believed that horses should be strong and efficient so their rules proclaimed that every horse should carry two riders. The country Bipflix was extremely environmentally conscious and determined that every horse should be equipped with an excrement catcher and processor. The country Slipzix determined that every citizen had an equal right to ride the horse and the rider for the big race would be determined by national lottery with everyone’s name in the hat. The country Chinix had decided that their horses were smaller in stature and consequently used steroids and other drugs to enhance the performance of their horses.

As you can imagine, this didn’t make for a very fair race, but that is exactly the kind of worldwide market situation we are faced with today. Please don’t get me wrong, as I am not advocating an international organization to determine the rules. What I am advocating is that if politicians and governments want to keep jobs in their own countries, then they better damn well figure out how to support businesses rather than restricting their competitiveness.

My own personal opinion is that way too much emhasis has been placed on jobs moving to countries with lower labor rates when in fact the real issue is overhead. Overheads are a much larger contributor to jobs moving offshore than are labor rates. Government mandated minimum wages, benefit packages, OSHA, EPA, Social Security, Workers Comp, etc., etc., etc. These are all overhead costs that government has imposed upon businesses. Here again, I am not saying that these should be eliminated to make our businesses more competitive on a world wide basis, but maybe there should be some offsetting help provided like accelerated depreciation for new equipment and systems that will keep our businesses current with the latest technology. Maybe we should consider making profits on products manufactured here but sold overseas be tax-free thereby encouraging domestic production rather than discouraging it and forcing domestic companies to set up off shore holding companies.

I vaguely remember my elementary school days when I learned that business needed people, capital and resources. Today, I look at that a little differently. Resources don’t have to be local. International business today has proven that the resources can be moved to where they are needed. People are becoming more critical to the success of business everyday. They are truly a differentiator if managed properly. Capital is readily abundant in most industrialized countries of the world. Customers are critical ingredients that are slowly gaining the recognition they deserve in this mix.

Finally there is government. Governments are like two sided coins, they have a good side and they have a bad side. The tremendous success of industrialized Japan in the 1970s and 1980s was the result of a positive working relationship between government and industry. Industrialized Taiwan has long been the beneficiary of a supportive, non-obstructive government. Industrialized China is currently riding high on a wave of government support. On the other hand, France and Germany are currently suffering under the weight of heavy government burdens. The United States has been very lucky for a very long time. Great Entrepreneurial genius, a plentiful and dedicated work force, ease of capital and access to a large market have all helped to make our country a great-industrialized nation. But times are changing, the world around us is changing and if we are to maintain industrialized jobs, it is going to require changes in the way our government treats business. It is time for our politicians and our government to quit showing the obstacle side of the coin and start showing the help side if they truly want to stem the tide of job losses in this country.

This is a subject with which we have all been wrestling and I am sure you have some specific ideas about the movement of production off shore. Please send me your thoughts and suggestions on this topic and we will add your comments to next month’s Taking Aim.

• On-Line training: Introduction to Product Life Cycle
Don’t forget our “Introduction to the Product Life Cycle.” The program is a streaming media presentation including slides, sound and information handouts. The basic training in marketing is available at www.cannonadvantage.com/ca_store.html. It is the essence of what we cover in our half-day workshop without dealing with your specific issues. If it is of interest, we hope you will give it a try.

• AHMA Hardware Show Endorsement
Trade Show Season is upon us. I would encourage you to consider supporting the organization that has the longest history of supporting our industry, the organization that has the reserves to allow it survive this most difficult year and keep on providing services to the industry. I would encourage you to support the organization that hosts programs and services that extend beyond the show. I would encourage you to support the AHMA Hardware Show.

• Upcoming Events

• April 18-20th AHMA Hardware Show in Chicago. Bob will be leading a Panel Discussion on “What has happened to Hardware on the Internet?”
  
  
• May 1-4, 2004 - The Institute of Management Consultants Conference in Nashville. Bob is scheduled to present “< 1 Sigma Decisions in a Six Sigma World.”
  
  
• Sept. 19-22nd International Conference on Appreciative Inquiry in Miami
  

If you have a subject that you would like to see covered in future issues of “Taking Aim,” please send me an email at aim@CannonAdvantage.com.

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