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When It's Time To Scale, US Manufacturing Hits a Wall

curtwoodward writes "MIT researchers looked at 150 of the school's spin-out companies in manufacturing businesses over a decade, and found many of them hit the same chasm: Once it was time to ramp up to large-scale production, they couldn't find domestic investors and had to go overseas. The bulk of the research will be published later this year, but it raises an interesting conundrum — if an MIT-pedigreed company has serious trouble ramping up production in the U.S., how much harder is it for the 'average' business that wants to grow? Is it even still possible to do high-tech manufacturing here — or should it be?" Intel seems to be doing OK with U.S. manufacturing, but they have the advantage of established operations.

8 of 268 comments (clear)

  1. Spoiled Americans by Anonymous Coward · · Score: 4, Funny

    Americans have no one to blame but themselves and their short sighted insistence that they be paid enough money to keep themselves in food, shelter, transportation and medical care here in America, rather than what it would take to do all of the above in Bangladesh.

    1. Re:Spoiled Americans by rve · · Score: 5, Funny

      Go ahead, take your plant to the Netherlands (or wherever), you'll be back in five years, looking for qualified steel workers!

      How can a US based company ever compete with a low wage, low cost of living country like the Netherlands, where employees aren't entitled to any benefits and will work 12+ hours a day for a basic meal?

    2. Re:Spoiled Americans by RabidReindeer · · Score: 3, Funny

      It's not?

      We're trying!

  2. Re:Manufacturing by CanHasDIY · · Score: 4, Funny

    Don't forget that investors look at more than just the product and the market. The look at the regulatory environment too because that can derail an otherwise profitable venture.

    Yea, how dare those bastards make clean air and water for everyone priorities over profits for the select few!

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
  3. Why? by Anonymous Coward · · Score: 0, Funny

    Why would anyone sane want to setup a factory in the U.S. or Europe?

    High taxes, high wages, high regulations, governments out to fuck you...

  4. Re:where are they!!!? by Tablizer · · Score: 5, Funny

    Where are all the Job Creators!! I hear so much about the favorable treatment they deserve.

    Indeed. I just kicked a dude in the face. I helped create a job for both a surgeon and an orthodontist. It feels so good to be a job creator.

  5. Re:I'm that guy on my block by CncRobot · · Score: 5, Funny

    Yea, with a username of CncRobot its probably a good guess I would have no idea what a CNC Router could do.

  6. Re:Didn't you listen to Mitt by Anonymous Coward · · Score: 1, Funny

    it's wrong to feel entitled to food, housing and health care.

    As opposed to, you know, getting a job and earning some of those things?