Pest Analysis About the American Manufacturing Industry

1259 WordsMar 22, 20116 Pages
PEST Analysis about the American Manufacturing Industry In the article Can the Future Be Built in America, the author Pete Engardio describes the crucial issue of the manufacturing industry exodus from the United States and how smarter tax policies, low-cost loans, and industrial zones may help keep factories at home. For over a half century, American manufacturing has dominated the globe. It helped rebuild Europe and Japan and it stimulated the economic growth in China because of outsourcing. During this period, American manufacturing became synonymous with quality and ingenuity. At the same time, it not only met all the material needs of the American people, but raised America’s middle class because many high-paying…show more content…
High corporate taxes result in a great number of American companies to move outside and look for different favorable environments towards its continuous development. In addition, attractive tax structures and subsidies cause a plant in Asia can be as much as 30% more profitable to operate over many years than one in America. In terms of economical factors, green-tech factories and solar energy companies are a new and growing industry in the world. The demand was very low in recent years in America. On one hand, America suffered a severe financial crisis and recession which put American economy in a dangerous situation. Because of the existing system, the companies don’t want to invest money and effort to make any change even this change is in favor of their development. On the other hand, European and Asian nations are dedicated to stimulating domestic demand with something called feed-in tariffs. This means that there are reliable profits for solar plant developers and operators. This policy enhances the domestic demand for new energy. The situation is totally different in America. There are only a few states that require utilities to pay extra for solar power, which cannot create high demand. In terms of social factors, the loss of the manufacturing industry causes ginormous job losses. A great number of workers who used to work in the manufacturing industry with fair pay have to convert themselves to service-type jobs with

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