Andy Grove’s Warning to Silicon Valley

It's common to see negative opinions of manufacturing jobs here and on other tech sites. I've worked in one the UK, doing 12 hour long day and night shifts (as a lab tech; I now have a PhD). It was long and hard work, being on your feet around a huge complex collecting samples from all the stages in production and then analysing them to strict deadlines. But you know what, I had greater job satisfaction from doing that than any other job to date, including the position I have now at a university. When I left the factory gates at the end of a shift, I was done, and could head home and relax in the knowledge that I'd done a good job, done my bit to keep the site and production running, and made a small but net positive contribution to the world. And got paid a decent wage for it. And working on a site with a big workforce can be very friendly environment with a lots of camaraderie with everyone working to the same goal to keep production running. You can have a lot of fun while on the job, while also working hard. As a software developer in acadaemia, and I suspect for many software developers in general, work never ends. When I leave work, the unfinished problems and backlog of untackled problems don't go away, which when coupled with deadlines and team communication, admin etc., can lead to significant amounts of stress and unhappiness and depression which I never encountered before. I suspect the lack of physical activity also contributes. And working in an open plan office with everyone plugged into headphones and on IM all day is much less social; at times I think it's like working with zombies!

In the UK, factory workers have strong legal requirements for safe working conditions, limits on hours, union representation if desired, and a host of other protections. The US has less strong employment protections, but I understand health and safety rules and maximum work hours etc. are decent. But would people want to work in a modern purpose-built manufacturing facility in the US? Hell, yes. Working on something like that can give real meaning and purpose to one's life, to be doing something real that actually contributes something physical to the world. Even if you're a small cog in a giant machine. As you head out of the factory gates and see the stream of lorries heading out loaded with product, you know that without your work that shift, they wouldn't be going, and that can give you genuine satisfaction. Ask the millions of people who lost their factory jobs to offshoring if they would go back for an answer with real meaning. I strongly suspect you'd have a majority vote yes.

I know this might not be a popular opinion, but I'll say it anyway. Manufacturing is what made the UK and the US into industrial powerhouses, which lead directly to the prosperity and quality of life we have enjoyed for decades, and its rapid decline has lead to a steep decline of both for many people, and a whole host of social problems. While the idea that a service economy will take over has been strongly pushed on both sides of the pond, it's obvious to anyone with an ounce of common sense that this isn't self sustaining; these are not wealth-creating industries since unlike manufacturing, they only transfer existing wealth around.

People matter.

It seems that today's high ranking economists, who are highly influential and defend their intellectual turf aggressively, rely on models which ignore/omit Mr. Grove's industrial policy insights.

US consumers get cheaper manufactured goods if the US economy just simply outsources all orders for these goods to factories in East Asia. And that seems to be about as deep as these economic analyses go.

But where is the economic analysis that recognizes and quantifies the cost of losing so much domestic manufacturing capability?

When I see how long it takes Indiegogo and Kickstarter hardware makers to actually create their finished products -- because they have to travel to China to meet with part suppliers and manufacturers -- I wonder how much US innovation has been crippled by the policies top US economists have confidently articulated and defended for the last 30 or 40 years.