MANAGEMENT INSIGHT Why Manufacturing Matters for U.S. Workers Prior to 2010, U.S. manufacturing employment fell at an average rate of 0.1% per year for 60 years. At the same time, U.S. factory output increased during that same time by an average rate of 3.4%. As manufacturers relied more heavily on automation, the number of people they needed declined. However, factory jobs are important because the average wage of a factory worker is $22, twice the average wage of employees in the service sector. Fortunately, manu- facturing jobs in the United States increased by 1.2% in 2010, and they are forecast to con- tinue to increase through at least 2015. Why? Because companies like Whirlpool, Caterpillar, and Dow are building huge new plants in the United States to replace old, inefficient U.S. facilities. For many products that are ultimately sold in the United States, it makes more sense to pro- duce them domestically and save on the shipping costs. In addition, these efficient new plants, combined with an experienced workforce, will make it possible to compete with manufacturers in other countries, the by asing export potential. Source: Bob Tita, "Whirlpool to Invest in Tennessee Plant," Wall Street Journal Online (September 1, 2010); and James R. Hagerty, U.S. Factories Buck Decline," Wall Street Journal Online (January 19, 2011). ? In what ways does the shift to automated factories change the amount and composition of product costs? (See page xx.) MANAGEMENT INSIGHT Why Manufacturing Matters for U.S. Workers Prior to 2010, U.S. manufacturing employment fell at an average rate of 0.1% per year for 60 years. At the same time, U.S. factory output increased during that same time by an average rate of 3.4%. As manufacturers relied more heavily on automation, the number of people they needed declined. However, factory jobs are important because the average wage of a factory worker is $22, twice the average wage of employees in the service sector. Fortunately, manu- facturing jobs in the United States increased by 1.2% in 2010, and they are forecast to con- tinue to increase through at least 2015. Why? Because companies like Whirlpool, Caterpillar, and Dow are building huge new plants in the United States to replace old, inefficient U.S. facilities. For many products that are ultimately sold in the United States, it makes more sense to pro- duce them domestically and save on the shipping costs. In addition, these efficient new plants, combined with an experienced workforce, will make it possible to compete with manufacturers in other countries, the by asing export potential. Source: Bob Tita, "Whirlpool to Invest in Tennessee Plant," Wall Street Journal Online (September 1, 2010); and James R. Hagerty, U.S. Factories Buck Decline," Wall Street Journal Online (January 19, 2011). ? In what ways does the shift to automated factories change the amount and composition of product costs? (See page xx.)