1st Edition

Reshore Production Now How to Rebuild Manufacturing and Restore High Wages, High Profits, and National Prosperity in the USA

By William A. Levinson Copyright 2023
    188 Pages 42 B/W Illustrations
    by Productivity Press

    188 Pages 42 B/W Illustrations
    by Productivity Press

    188 Pages 42 B/W Illustrations
    by Productivity Press

    This book addresses the vital importance of reshoring US manufacturing capability to ensure economic and military security and then discusses the proven methods that the United States used to gain manufacturing supremacy in the first place. The vital takeaway is: If the job can be made sufficiently productive, the per-unit labor cost ceases to be relevant which means a business can pay high wages, realize high profits, and deliver low prices simultaneously. The contest is then not between high wages and cheap labor, but between efficiency and inefficiency and, when automation is involved, machine against machine. Readers will be able to put these principles to work very quickly to achieve tangible results.

    The relatively low Federal minimum wage has meanwhile become a major issue, but inflation skyrocketed in the second quarter of 2022 when higher wages, and higher demand for goods and services, were not matched with higher productivity. The book addresses the relationship between the money supply and the velocity of money to prices, wages, and productivity.

    A manufacturing resurgence in the United States will not only increase our standard of living enormously but generate taxable economic activity that will help pay down rather than increase the Federal debt. Higher productivity also delivers a greater supply of goods to accompany higher wages, and thus works against inflation. This can prevent looming recessions and disruptions.



    Reshoring is a SMART Goal

    Content Overview

    Chapter 1. Wages, Productivity, and Inflation

    Money is Not Value or Utility

    Money Debasement, Then and Now

    Even Precious Metals Often Lack Genuine Utility

    Weimar Wastepaper and Cryptocurrency

    Money Supply and Velocity, and the Equation of Exchange

    Deficit Spending and Inflation

    Productivity Counteracts Inflation and Pays Down the Deficit.

    Revenue Must Also Balance Profits and Costs of Production

    Waste is Inflationary

    We Must Produce Our Way Out of the National Debt

    Chapter 2. Loss of Manufacturing Equals National Decline

    National Prosperity Comes from Adding Value to Raw Materials

    Be at the Top of the Food Chain

    Raw Materials are Fleeting; Manufacturing Endures

    The Danger of Manufacturing Inferiority

    The United States' Response: Lean Manufacturing

    Emerson's Twelve Principles

    The Leaders of the American Response to Japanese Organization

    Industrial Power Equals Military Power

    Pre-Agricultural Warfare

    Modern Warfare as a Product of Agriculture

    The Rise of the Military-Industrial Complex

    Lepanto (1571) and the Spanish Armada (1588)

    The American Civil War

    The First World War

    The Second World War

    Manufacturing an End to War

    Cooperation is Natural, and Conflict is Dysfunctional

    War Was Once a Private Affair Between Absolute Monarchs

    War in the Industrial Era

    Application to National Social Problems

    The Collapse of American Shipbuilding and Maritime Commerce


    Chapter 3. The PRC is a Dangerous Geopolitical Rival

    The PRC's Threats to American Supply Chains

    The Chinese Communists Lobbied Against Legislation to Promote US Chip Manufacture

    Counterfeit and Substandard Products

    Failure Mode Effects Analysis Perspective

    Dangerous Pet Toys and Pet Foods

    Counterfeit Fasteners in Aerospace and Construction

    Counterfeit PRC Medications Threaten U.S. Supply Chains

    Substandard Respirators for Covid-19 Protection

    General Supply Chain Risks

    Semiconductor and Automotive Supply Chains

    Other Supply Chain Problems


    Chapter 4. Cheap Labor is a Dangerous Illusion

    Meet the High-Priced Workers

    High-Priced Workers and Standards

    High-Priced Soldiers are Cheaper than Cheap Soldiers

    Gideon and his 300 "High Priced Men"

    Cheap Labor is Costly

    What About Piece Work?

    Can We Compete with PRC Automation?

    Near Common Sense versus Supernal Common Sense

    Financial Metrics: the Road to Ruin

    Be Careful What You Wish; You Might Get It

    How Dysfunctional Metrics Brought Down W.T. Grant

    Unsaleable Inventory and the Laxian Key

    Marginal Revenues, Costs, and Profits, and Sunk Costs

    Transfer Pricing Traps

    How to Outsource Manufacturing at a Loss

    Dysfunctional Purchasing Incentives

    Total Cost of Ownership (TCO) and Toyota's Seven Wastes

    Waste in Trucking Hurts Drivers and Makes Just-in-Time Impossible

    Book Value is Not Real Value

    Costs of Foregone Opportunities

    Slavery, Robot, and Corvée as Free Labor

    Aristotle Predicted that Automation Would Abolish Slavery

    The Suez Canal; Late and Overpriced with Free Labor

    Automation Eradicates Slavery and Cheap Labor

    False Economy of Cheap Equipment and Training

    Low Wages Indicate Low Profits and High Prices

    Lose the Luddites

    Shoe Manufacture: A Case Study

    The Ford Motor Company, Early Twenty-First Century

    Self-Service Kiosks

    Longshoremen versus Bar Code Scanners

    Luddism and Mechanical Power

    Don't Prove the Luddites Right


    Chapter 5. We Can Do It!

    Think Like a Greek

    Learning from Hercules

    Learn from Everything You Encounter

    Break Paradigms and Think Around Problems

    Our Legacy from Alexander the Great (and Henry Ford)

    When Education is Dangerous

    The Basic Principles

    Efficiency Makes the Per-Unit Labor Cost Negligible

    Friction and Opportunity Costs

    Taylor's "Improved" Pig Iron Handling Still Shows Enormous Waste

    Gap Analysis

    More About Friction

    Modern Depictions of Friction

    The Value-Adding "Bang!"

    Friction, Motion Efficiency, and Standard Work

    Interrupted Thread Fasteners

    Japanese Disposable Gowns

    Fruit Harvesting


    Brick Laying and Roofing

    Floor Tiles, Sidewalks, and Safety Tape Marking

    Standard Work

    Standards are Documented

    Use the Standard to Identify Improvement Opportunities

    Elements of Standard Work

    The Job Breakdown Sheet

    Opportunity Costs

    Textiles and Cotton

    Opportunity Costs in Agriculture

    Opportunity Costs in Fruit Harvesting

    Pay Attention to Materials and Energy

    The Material and Energy Balance

    Material and Energy Review

    Hunt the Coal Thief

    Paint Parts, Not Air

    Fertilize Crops, Not Groundwater

    Baptize Converts, Not Parts

    Raise Meat, Not Animals

    Dye the Yarn, Not the Water

    Sell the Coal Chemicals, Don't Burn Them

    Light the Streets, Not the Sky

    Ship Product, Not Air

    Avoid Wasteful Overhead

    Expensive Cities Add Costs

    Educate the American Consumer to Buy Value and Not Waste

    Don't Buy Indulgences or the Emperor's New Clothes

    Extended Warranties


    Celebrity Endorsements and Brand Names


    Private Versus Public Universities





    William A. Levinson, P.E., is the principal of Levinson Productivity Systems, P.C. He is an ASQ Fellow, Certified Quality Engineer, Quality Auditor, Quality Manager, Reliability Engineer, and Six Sigma Black Belt. He holds degrees in chemistry and chemical engineering from Penn State and Cornell Universities, and night school degrees in business administration and applied statistics from Union College, and he has given presentations at the ASQ World Conference, TOC World, and other national conferences on productivity and quality.

    Levinson is also the author of several books on quality, productivity, and management. Henry Ford's Lean Vision is a comprehensive overview of the lean manufacturing and organizational management methods that Ford employed to achieve unprecedented bottom-line results, and Beyond the Theory of Constraints describes how Ford's elimination of variation from material transfer and processing times allowed him to come close to running a balanced factory at full capacity. Statistical Process Control for Real-World Applications shows what to do when the process doesn't conform to the traditional bell curve assumption.

    This book is an incredibly comprehensive analysis of the factors that drive a successful manufacturing economy. Levinson provides insights from pre-historic times to the current competition with China. He understands the importance of companies sourcing based on Total Cost of Ownership (TCO) instead of wage rate or factory price. Our user data shows that about 30% of import from China would be reshored if companies followed this advice and did the math correctly.

    -- Harry Moser, President, The Reshoring Initiative (reshorenow.org)