Make It In America: The Case for Re-Inventing the Economy [Hardcover]

Andrew Liveris (Author)

Book Description

Publication Date: January 4, 2011

America used to define itself by the things it built. We designed and produced the world's most important innovations, and in doing so, created a vibrant manufacturing sector that built the middle class. We manufactured our way to the top and became the undisputed economic leader among all nations. But over the last several decades, and especially in the last ten years, the sector that was America's great pride has eroded, costing millions of jobs and putting our long-term prosperity at risk. Now, as we struggle to recover from the worst recession in generations, our only chance to turn things around is to revive the American manufacturing sector—and to revolutionize it. In MAKE IT IN AMERICA: The Case for Reinventing the Economy, Andrew Liveris — Chairman and CEO of The Dow Chemical Company—offers a thoughtful and passionate argument that America’s future economic growth and prosperity depends on the strength of its manufacturing sector. The book

• Explains how a manufacturing sector creates economic value at a scale unmatched by any other, and how central the sector is to creating jobs both inside and outside the factory.
• Explores how other nations are building their manufacturing sectors to stay competitive in the global economy, and describes how America has failed to keep up.
• Provides an aggressive, practical and comprehensive agenda that will put the U.S. back on track to lead the world.

It's time to stop accepting as inevitable the shuttering of factories and staggering job losses that have come to define manufacturing. It's time to acknowledge the cost of inaction. There is no better company to make the case for reviving U.S. manufacturing than the Michigan-based The Dow Chemical Company, one of the world's largest manufacturers and one of its most global corporations. And there's no better book to show why it needs to be done and how to do it than MAKE IT IN AMERICA.

Andrew Liveris is Chairman and CEO of The Dow Chemical Company, one of the largest multinational corporations in the world and a leader in science and technology.

Q&A with Author Andrew Liveris

What is the biggest factor to explain the dramatic loss of U.S. manufacturing sector jobs that began in the 1970s?

Author Andrew Liveris

There are a lot of reasons that the U.S. manufacturing sector has lost jobs over the last four decades, but they boil down to this. The world changed, and our policy approach did not change with it.

Think back to the years right after World War II. When it came to economic competitiveness, the United States was the only game in town. But after that, the European economies and Japan, with our help, came back robustly – both with a strong orientation to manufacturing and quality. Next came the Asian Tigers, followed by Brazil, China, India, and Russia – the so-called “BRIC” countries. Other, smaller economies emerged as well.

All of these nations were, and still are, are asking themselves the same thing. “How can we create jobs? How can we grow our manufacturing base?” And they’re doing everything they can to compete – tax holidays, low-cost loans, you name it.

Meanwhile, the United States has stood still. We’re still the world’s largest economy, but every day, we are losing ground. Unless American policymakers improve the business climate by addressing everything from taxes to R&D to education reform, the decline of American manufacturing is inevitable and irreversible.

I believe the world is entering a golden age of manufacturing, based in no small part on American innovation and technology. Jobs will be created. Value will be created. The question is, will they be created here or someplace else?

Are there pros to the American economy shifting from a manufacturing-based economy to a service-based economy?
Frankly, no. Manufacturing creates jobs in a way that the service sector simply cannot. A new manufacturing facility supports an entire value chain – demand for raw materials, construction, energy, supplies and services.

For too many Americans, the word “manufacturing” has an old-fashioned ring to it. They think of it as a thing of the past. To them, manufacturing means lost jobs, closed factories, and a struggling middle class.

But here’s the truth about manufacturing in the United States. The workforce in this country contains 150 million people, and they can’t all be employed in the service sector. Manufacturing – and only manufacturing – can create the multiplier effect that is necessary if we’re going to have anything approaching full employment.

We have to stop pretending that a “service-based” economy is a viable option. The consequences would be massive unemployment, even greater income inequality, and the gradual obsolescence of our entire economy. I’m not saying that there isn’t a place for service industries, because there absolutely is. But we need to have balance in the economy, and right now, our balance is dangerously off.

Where can the U.S. manufacturing industry look for inspiration right now?
All across the world. I have been in manufacturing for 35 years, and this is absolutely the most exciting time I have ever seen for manufacturing globally. That is why I call this a “golden age.” The manufacturing sector is rapidly evolving, advancing, before our eyes. It is stunning to watch it unfold.

Look at any of the world’s great challenges, and manufacturing is central to the solution. The world needs semiconductors and microprocessors; wind turbines and solar cells; advanced batteries and state-of-the-art medical devices. Manufacturers make these things, and these things, in turn, will remake our future.

But unless we act, these innovations will be built somewhere else. Other countries are already out-competing the U.S. Take Germany--an excellent example of a high-wage country that has revived its advanced-manufacturing sector. In 1998, Germany had a trade deficit of $5.9 billion. By 2008 it had a trade surplus of $267.1 billion. That’s no accident. The German government invested in advanced manufacturing, and those investments are paying off.

Germany is investing in industries of the future, such as renewable energy, and that puts them in a great position to stay competitive into the future. So the German success story should be both an inspiration and a call to action. U.S. policymakers ignore it at their--and our--peril.

Is your sense that the U.S. government could be doing more to help stimulate the manufacturing sector in the U.S.?
Absolutely. As a businessman, I have great faith in the wisdom of markets. But I recognize that markets cannot replace the long-term strategic framework that only governments can build.

Other countries are out there competing for the same jobs, the same dollars, the same economic growth that we are. Our nation—and especially our government —must get serious about rising to that challenge. It’s not often that you hear a CEO call for more government action, but my belief is anchored in a basic premise: in order to stay competitive, we need to reinvent the manufacturing sector in the U.S. And for that we need government as a partner.

Make It in America proposes a number of steps the federal government can take to restore American manufacturing—a comprehensive advanced manufacturing policy that would address everything from high corporate tax rates to contradictory regulations to failing schools. Neither the business community nor the government can do these things alone—we need to work together in the best interests of our nation’s economy.

We need to act more boldly than in the past. Take the example of education. Advanced manufacturing jobs require much more education than traditional manufacturing jobs, especially in science, technology, engineering and math. In those fields, the U.S. lags behind our competitors—and it costs us badly. According to McKinsey, the achievement gap between the U.S. and its high-performing competitors cost us $1 to $2 trillion in 2008 alone. If we want to keep our economy growing, we need to reform our education system.

A lot of people see the government as an adversary to business, but when we think about areas like education or R&D investment, it’s clear that is not the case. I see government as an essential partner. I believe the way of the future in this country is in public private partnerships so that we can build the new U.S. economy in a deliberate manner. We need the framework for investors and entrepreneurs to become more certain instead of suffering from the volatility and unpredictability of policies that operate on two-, four- and six-year cycles.

What do you hope will change by your writing this book?
The goal of Make It in America is to change the conversation about the manufacturing sector, to change how the citizen on the street sees and perceives the sector; that manufacturing is not a dinosaur, but a vital part of the U.S. economy. One might say to enable the U.S. economy. We need to change the perception, and make people aware of this when they vote for policies and politicians.

The world has changed, and unless our economic policies change with it, this country will experience a massive long-term economic crisis. High unemployment will become the rule, rather than the exception. The middle class will be, for all intents and purpose, obsolete. And time is running out, because our competitor nations aren’t waiting around to see which direction we’re going to choose. We have to make the right choices, and we have to make them before it’s too late.

That sounds pretty bleak, but to be honest, if I thought decline was inevitable, the book would never have been written. At the end of the day, I am an optimist. Americans have always adapted to the new and often unpredictable challenges of their time, and I believe we will adapt to this one as well.

So I think our leaders—in business and in government—will make the decisions they need to make. They will help usher in a golden age of American manufacturing and we will see the rebirth of a vital American sector. It is not hard to imagine a day when the world’s great inventions aren’t just created here, but are produced here as well. And put people to work here again.

My hope is that Make It in America will bring that day a little bit closer.

Editorial Reviews

Review

“Andrew Liveris has produced a well-written and timely book that deserves wide circulation. Everyone concerned with America’s economic difficulties should read it.” (The Washington Examiner)

“Perhaps because Liveris is Australian by birth, his economic patriotism comes across as genuine and heartfelt. The fact that he is chief executive of Dow Chemical gives the book added authority. What is most noteworthy about the book, however, is his unsparing critique of the business community for its blind faith in markets and globalization, and its stubborn refusal to accept a government role in managing the economy.” (The Washington Post)

“In uncertain economic times, it’s inspiring to see that the top executive of a leading American company has written a book titled Make It in America. What can be more inclusive and 21st century-sounding than a pro-America argument being made by an Australian of Greek heritage such as Liveris? He may have written the book while relaxing in a melting pot.In Make It in America, Liveris spells out the challenges facing American manufacturing. He argues in favor of a national economic policy, one that will make it easier for manufacturing to thrive here as it once did. He stresses over and over again the importance of manufacturing because of the number of jobs it creates both on its own and in related sectors. This “multiplier effect” is much greater in manufacturing than it is in other industries. In his book, Liveris tackles many big-picture topics. He’s asking a lot of important questions, questions that will need to be answered if America’s manufacturing base wants to survive and thrive.” (Plastics News)

“Manufacturing still accounts for nearly one in 10 U.S. nonfarm jobs as measured by the government, and those jobs tend to pay much better than burger-flipping or barista gigs. . . Between 1997 and 2009, we lost six million U.S. manufacturing jobs, or around a third of the total. How much should we care? Plenty, says Andrew Liveris, chairman and chief executive of Dow Chemical. In Make It in America, he calls for a national strategy to revive manufacturing. We need manufacturing jobs, he says, if we are to keep a growing population busy and start paying off our debts to the rest of the world. Some Americans imagine that we can thrive by continuing to dream up gadgets like iPhones and Kindles while letting the Chinese do all the tedious work of making the products themselves. Mr. Liveris disagrees. . . Mr. Liveris doesn't shy away from proposing ideas that have defeated countless other reformers. For instance, he wants to overhaul our K-12 education system so that it will concentrate more on science, math and engineering. That promises to be a long struggle, he admits. ‘I pushed science at the dinner table with my kids,’ writes Mr. Liveris, who loved chemistry as a boy, ‘but none of them ended up going into engineering.’”(The Wall Street Journal)

“Is the U.S. manufacturing sector . . . becoming as obsolete as [a] typewriter? Andrew N. Liveris seems to think so. He has written a book, Make It in America: The Case for Re-Inventing the Economy.As chief executive officer of Dow Chemical, Liveris is in a unique position to understand the problem. . . Liveris points out that production hasn’t kept pace with the increase in the U.S. population and that our share of global industrial output has been shrinking. The decline of the manufacturing sector is a real threat to the prosperity that Americans take for granted, Liveris says. We cannot hope to sustain our vast economy if we write off its greatest engine of job creation. Liveris cites a 2009 study by the Manufacturing Institute that says every $1.00 in sales by a manufacturer generates $1.40 in economic activity elsewhere in the economy. . . Liveris’ key insight is that the U.S. isn’t necessarily losing ground for the reason most people think: low wages in developing countries. High productivity in the U.S. makes up for much of that, he points out. Instead, countries such as China and Singapore are attracting companies with generous incentives. If you can’t beat ’em, join ’em, Liveris says. The U.S. needs to offer incentives to attract more investment. He suggests reducing taxes for manufacturers and making the R&D tax credit permanent and more generous. . . The era when the federal government can offer nothing but gratitude in return for investment dollars is probably over. States and localities offer incentives to attract investment away from other communities all the time. Maybe the entire country should try to do the same to stem the manufacturing decline.”(Chemical & Engineering News)

“Mr. Liveris’s argument is compelling and even novel. . . this book serves as a clarion call for rebuilding the United States’ manufacturing base. He argues this can and must be done by a novel partnership between government and business. Further, this partnership must provide long term incentives and opportunities to increase innovation in the U.S. manufacturing sector that until recently was given up for a loss.  This book is a must read for policy makers and forecasters of global economic trends.” (New York Journal of Books)

“The Perspective of a chief executive who is really making vital decisions about the location of manufacturing  plants and research centres is well worth hearing…full of stimulation ideas, and remarkably well-written for a book by a chief executive.”(Financial Times)

“The case for a better understanding of how prosperity is actually won and sustained in a globalizing world is well argued in a timely new book ‘Make It In America’ by Andrew Liveris. His thesis is that innovation alone is not sufficient as a basis for a durable leading-edge economy and that the American economy cannot be lifted out of decline by innovation alone. . . Beyond the obvious truism that a country cannot increase exports if it does not make things to export, Liveris argues a less well-understood dimension of the challenge, explaining that a country that innovates products and then hands off the production to another country to manufacture will wind up seeing the next generation of innovation come from the country that does the manufacturing. . . Liveris makes an even more compelling case that the US cannot survive as a purely service industry economy. Services are important, but many result in transfer of money from one pocket to another without, as manufacturing does, actually adding value and increasing wealth. . . Certainly, Liveris’ suggestions for revival sound worth trying in the light of his chilling crisis narrative. Of course, they are not the lead-pipe cinch Liveris tries to make them. Overall, in fact, Liveris’ book, certainly unintentionally, makes a much more convincing case for the fact of crisis than for the ability to emerge from crisis. But a vital prerequisite for revival is a more widespread recognition of the problem, and Liveris make a signal contribution to that end.”(European Affairs)

“Mr. Liveris’s argument is compelling and even novel. . . this book serves as a clarion call for rebuilding the United States’ manufacturing base. He argues this can and must be done by a novel partnership between government and business. Further, this partnership must provide long term incentives and opportunities to increase innovation in the U.S. manufacturing sector that until recently was given up for a loss.  This book is a must read for policy makers and forecasters of global economic trends.”(New York Journal of Books)

“Productivity is up in the United States but what’s actually made and sold here isn’t keeping up with the population; innovation and service jobs are important but insufficient for economic stability by themselves; and government involvement is vital if U.S. manufacturing is to be revived. That’s all according to corporate CEO Andrew Liveris, whose bold criticism of American business in his new book, Make It in America: The Case for Re-Inventing the Economy, comes across less as pride than patriotism. The Chairman of Dow Chemical, the Michigan-based Fortune 500 multinational company, Liveris shows the loss of manufacturing as a real threat and offers a realistic roadmap to rebuild the nation’s economic core.”(Daily Review Atlas)

From the Inside Flap

We used to make things in this country. We were the dazzling innovators, the undisputed world economic leaders, and with our manufacturing engine driving the process, we built a solid, high-achieving middle class and a thriving economy. Now, thanks to policies that are either indifferent to manufacturing or, in fact, downright hostile, we're at the brink of losing it all. If you think this won't affect you, guess again.

In Make It in America: The Case for Re-Inventing the Economy, author Andrew Liveris presents a powerful case for how critically important domestic manufacturing is to the long-term health of the entire U.S. economy, and he issues a candid wake-up call to America to re-invent its manufacturing base before it's too late.

If anyone has street cred on this subject, it's Andrew Liveris. Currently Chairman and CEO of The Dow Chemical Company, one of the world's largest man-ufacturers and one of the most global corporations, he's been on the global manufacturing stage for over thirty years. In this thought-provoking book, Liveris challenges conventional wisdom and, using vivid examples from around the globe, makes clear:

• Manufacturing matters—more than ever before. Not all sectors are created equal. Manufacturing can create jobs and wealth and growth to a degree that the service sector can't match. The rest of the world now sees what America used to understand: the key to economic growth is taking something of lesser value and transforming it into something of greater value. That's what manufacturing does.

• The Rust Belt, it turns out, isn't so rusty. Twenty-first- century manufacturing means solar cells for your home, batteries for your hybrid car, the touch screen on your smart phone, and the e-ink in your Kindle. Manufacturing is the key driver of R&D, and the leading edge of innovation.

• Government's got to get engaged. Liveris argues it's a false choice to claim that you must be either pro-business or pro-government. Globalization has changed the equation. Governments all over the world are working in partnership with—and taking action on behalf of—their leading industries. Why isn't America?

Liveris sees where America is losing ground—from innovation to job creation—and explains how we can take back our future. Make It in America is a must-read for anyone who believes that America's greatest, most productive, most prosperous days are not behind us. Our best days lie ahead of us if we take proactive measures now. They're still within reach.

See all Editorial Reviews

Product Details

• Hardcover: 240 pages
• Publisher: Wiley; 1 edition (January 4, 2011)
• Language: English
• ISBN-10: 0470930225
• ISBN-13: 978-0470930229
• Product Dimensions: 6.2 x 0.9 x 8.8 inches
• Shipping Weight: 12.8 ounces (View shipping rates and policies)
• Average Customer Review: 4.8 out of 5 stars  See all reviews (19 customer reviews)
• Amazon Best Sellers Rank: #203,698 in Books (See Top 100 in Books)
  • #65 in Books > Business & Investing > Industries & Professions > Industrial Relations

More About the Author

Andrew N. Liveris is Chairman and Chief Executive Officer of The Dow Chemical Company, a $54 billion global specialty chemical, advanced materials, agrosciences and plastics company based in Midland, Michigan. An advocate for the criticality of manufacturing, Liveris serves as Co-Chair of President Obama's Advanced Manufacturing Partnership. He is also the author of Make It in America which presents a comprehensive set of practical policy solutions and business strategies for reviving this important sector. Liveris sits on the board of directors of IBM, is vice chairman of the Business Council, vice chair of the Business Roundtable and a member of the President's Export Council. He serves as president and chairman of the Board of the International Council of Chemical Associations. He serves as a trustee for the Herbert H. & Grace A. Dow Foundation, United States Council for International Business (USCIB), and Tufts University. A chemical engineering graduate, Liveris continues to support his alma mater as the inaugural chair of the University of Queensland in America Foundation.

Most Helpful Customer Reviews

27 of 30 people found the following review helpful

5.0 out of 5 stars constructive and well-written! January 6, 2011

By Gaunilon

Format:Hardcover

CEOs know how to get things done. Liveris has tranformed Dow from a commodities chemicals producer into an advanced materials leader. His vantage is global: over 2/3 of his revenues come from outside the US. This Greek Australian advocates US manufacturing and in fact, Dow exports a lot of manufactured goods. So he has the experience and success that should qualify him on the subject he's undertaken.

Certainly that comes across in the book, which doesn't chest-thump. Nor does it indulge in keening, as it easily could, when you consider the lose of manufacturing leadership here. Instead, it states the problems, cites anecdotes and data to make them clear, and then talks solutions. Those aren't extravagant, don't require huge new legislation or regulatory slaughter. The book reads easily but accomplishes a lot in not too many pages. Worth it!

11 of 13 people found the following review helpful

5.0 out of 5 stars Make it in America - a case for industrial policy February 21, 2011

By Thomas Wucetich

Format:Hardcover|Amazon Verified Purchase

I became aware of this book when I caught an interview with the author Andrew Liveris on NPR's - "All things considered" The first thing that impressed me is the book is actually written by the CEO of a major Fortune 100 company - and a chemical engineer by profession and NOT an MBA, law grad or MD.

The book's central theme cites the decline of manufacturing and associated jobs, where in 1953 General Motors alone was responsible for 3% of the U.S. GNP; where as at that time there were 20 million manufacturing jobs - to 2010 where there is a mere fraction of that amount has been due not simply to outsourcing to lower wage nations, but the U.S. lack of energy policy, onerous patchwork of government regulation - at all levels and failure to come up with effective taxation policies to effectively compete with western European countries like Germany and emerging economic powers, especially China. Mr Liveris presents concise arguments with an impressive degree of supporting facts, charts, graphs and other data as to how the United States' manufacturing base needs to be revamped through effective government policy changes. He stresses the importance that the wealth of nations is produced through the use of labor, skill and R&D to turn raw materials into marketed products - not simply service sector jobs and creative financial investments.

The style of "Make it in America" is that of a kind of thesis for a political action committee. Brief, clear and written in a highly personalized style; one gets the impression that the book is a kind of lecture compressed inside of book covers, but one that's engrossing, impressive and alarming. In its advocacy for industrial / government liaison and cooperation the book takes numerous shots at the neo con's laissez fair capitalism and Washington's almost hopeless bureaucracy.

"Make it in America" is a strong case for the red, white and blue "Made in USA" tag and bringing the argument for industrial policy in the national debate. Great book.

6 of 7 people found the following review helpful

5.0 out of 5 stars Must read for all Americans February 20, 2011

By M. R. LAPLANTE

Format:Kindle Edition|Amazon Verified Purchase

Mr. Liveris puts in very plain language what the future looks like if we don't address the problems that plague the US economy and what the future looks like if we re-establishing a strong manufacturing base in the US. I can't remember the last book I was so eager to keep reading!