I wrote that article over one year ago. The idea is that our nation has been living off borrowed money for decades, which has allowed foreign nations to manipulate their currencies and destroy our manufacturing industry so much so that 72% of our economy is driven by consumption. That is all changing now, but the challenge is that it's changing faster than the US or the rest of the world can adjust.
Manufacturing is still the way out of this downturn, although it may not seem that way right now with the continued drop in manufacturing goods. After the dust settles and the world realizes that they no longer need to borrow money to America because we cannot pay back the money that we already borrowed, the dollar will sink.
At that time, America will need to return to its roots as a producer nation. Import prices will drastically increase making it cheaper for us to manufacture our own goods again. This will be the beginning of a re-birth of the manufacturing industry. But it won’t be easy going and will probably mean employing people at much lower paying jobs than they use to have.
The high-unemployment will allow the manufacturing industry to find employees willing to work for lower wages, so they can once again produce products at a profit. This will not happen overnight, but I think the trend could begin as soon at 2010.
If you follow my vision for the growth in manufacturing that is just around the corner, than this is a good time to start looking for ways to get more involved with the manufacturing industry. If you’re an investor, consider purchasing prime manufacturing facilities that are now for sale. If you’re an engineer of some type, consider studying industrial engineering. If you’re looking for a new career, start applying and interviewing at a manufacturing business because they are likely to be one of the first industries to start growing after the market bottom and therefore provide a stable jobs.
I’ll be watching and writing more about this trend as we get closer to a turning point and more evidence of this trend becomes apparent.