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4 Considerations for Government
Pages 61-70

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From page 61...
... Government policies can stimulate this process, and every tax, spending, and money supply decision has an impact, but it is very difficult to identify specific policies that would be indisputably beneficial and politically acceptable across the broad spectrum of U.S. industry.
From page 62...
... Demanding an explicit quid pro quo in return for trade protection, loan guarantees, regulatory relief, or other governmentprovided support represents a departure from past government practice. Other government initiatives to support manufacturing, however, need not require dramatic changes in policy.
From page 63...
... Flexibility in U.S. trade policy will be hampered by such factors as the growing number of foreign manufacturing facilities in this country, the increasingly complex pattern of equity ownership across national boundaries, a growing incidence of foreign products in the product lines of domestic manufacturers, and a trend among multinational companies to make components in scattered plants and assemble them at a single location.
From page 64...
... The U.S. government must remain committed to continued vigilance and the implementation of strong sanctions to ensure quick and effective resolution of international patent, trademark, and copyright infringements.
From page 65...
... Technical schools will need to base their training for displaced workers and young people entering the labor force on realistic reassessments of industry's skill requirements, recognizing that industry's ability to predict its needs sufficiently in advance to accommodate educational planning cycles is weak at best and that most future manufacturing jobs will not be on the factory floor. Furthermore, skill requirements for the remaining positions in manufacturing may vary significantly among plants, creating a need for customized training programs.
From page 66...
... If the situation is detrimental, industry should work with universities and government to provide incentives for postgraduate study and adjust compensation levels to encourage more postgraduate work. Of course, an overall increase in engineering students would increase the pool of potential graduate students, so efforts should be made to increase the number of students entering engineering.
From page 67...
... Just to program this one machining application involves thermal dynamics, materials science, surface physics, and a number of other disciplines; given the huge number of process activities in the factory, the need for scientific research explodes. The required level of investigation will be far more precise than it has been traditionally.
From page 68...
... Because of the inherent problems in defense procurement procedures, defense officials have used specific programs to encourage manufacturing development and implementation by contractors. The Manufacturing Technology programs, Industrial Modernization Incentive Program, and the Technology Modernization programs have used different strategies and criteria to support manufacturing technology improvements by defense contractors.
From page 69...
... Policymakers will need to recognize the growing link between advanced manufacturing technology and advanced weapons systems and address ways to provide incentives for manufacturing process modernization, either through major corrections in the procurement process, consistent adequate funding for focused programs, or a combination of both.3 CONCLUSION Government should continue to help companies and industries unduly hurt by the rapid change in manufacturing. It should help primarily by continuing to provide infrastructural support to manufacturers and their workers and secondarily by easing the negative impacts of the many changes expected in manufacturing.
From page 70...
... NOTES iThe National Association of Manufacturers estimates that 70 percent of American manufacturing is already confronted with import competition. 2For a fuB discussion of the use of computers in design and manufacturing see Committee on Science, Engineering, and Public Policy, 1985, Report of the Research Briefing Pane!


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