Competitiveness Toolkit Draft

Call for Partner(s):

We are seeking other organizations to partner with us in refining the Toolkit and presenting it to the administration and Congress.

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Objectives:

1. Level the playing field: Create a vetted national policy tool to select the optimal actions that will bring back the desired number of manufacturing jobs with the least collateral damage. The actions will also keep jobs from leaving and increase exports.

2. Overcome the wide belief that the U.S. cannot and will never again produce many of the products that have been lost to offshoring. Show that there is a path to adding millions of manufacturing jobs.

3. Advance from the current condition, many groups proposing, but not quantifying their solutions’ impacts, to a unified, quantified proposal for the nation.

How to Quantify the Competitiveness Gap

  • Change underlying assumption: Most importation of manufactured goods is, finally, motivated by price, i.e. by lower wages and manufacturing costs abroad. Some eco-system gaps exist but would be filled if cost structure allowed.
  • Use TCO (Total Cost of Ownership) Estimator user database to provide:
    • Ex-works product price distribution for U.S. and offshore
    • User calculated “hidden” costs including quality, delivery, IP, etc.
    • By source country (esp. China) and industry

  • Obtain annual $ value of imports by country and industry from Commerce
  • Calculate:
    • The % ex-works and TCO competitiveness gaps by country and industry. A statistical distribution.
    • The relationship between aggregate imports and competitiveness gap. The price-elasticity of imports.
    • Percentage improvement in U.S. price competitiveness needed to substitute domestic production for imports, reducing non-petroleum goods imports by X% and therefore the trade deficit by 3X%.
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    Project Plan:

  • Find one or more partners
  • Refine the estimates presented above
  • Add additional Factors
  • Post online
  • Provide space for others to:
    • Insert their estimates and supportive logic if they differ from ours

    • Insert additional factors and estimates

  • Objective: Attract attention to the analysis and drive towards a consensus
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    HM 9/23/17

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