What can your company offer? Does it address service needs for consumers? How do you define a ‘consumer?’ Could your business take a few steps in another direction, creating a different vantage point, and target market? A recent article illustrates the emphasis of offering services rather than producing in factories.
The rationale makes some sense, considering the educated work force of America. As the article reasons, some economists feel America should shift emphasis from low-skilled manufacturing jobs to emphasizing high-skilled services like engineering, which is more representative of a prosperous corner of the American economy, distinguishing our nation from others. “There is for some reason this manufacturing fetish in America that is not consistent with U.S.’s fundamental economic interests. Meanwhile, there are these barriers which American services companies face in establishing abroad, and no one talks about them,” mentions a research manager at World Bank.
As the article highlights, the ‘playing field’ may be shaped that way due to the nation’s dynamic in regulating particular verticals outside of the country. For instance, America steps in regard to American-good tariffs; however, intervention does not happen regarding the provision of services, such as life insurance.
Americans predominantly supply services; 70% of Americans work in service-providing positions. Should we hold back on manufacturing? It’s presently one of our strengths and regular occurrences; America exports more than any other country in the world, more than the next two nations combined. The process produces national income; but, economists think a shift would benefit America.
Economies are growing in other nations; these prospering nations are going to need to ‘pave ways for success.’ “There is this huge infrastructure boom where these big, fast-growing economies are going to need to build out their roads, sewers, telecommunications networks, factories, airports, harbors, you name it. All those projects require armies of architects, engineers, project managers, financial insurers. These are all the kinds of tradable services that we have an advantage in providing,” observes one economist from the Peterson Institute for International Economics.
Part of the issue relates to free roaming across borders. The US has tight immigration laws. As the article suggests, we don’t have the authority other nations have regarding a transfer of services. Economists do understand, free-ranging trade would put some Americans at a disadvantage; but, the process should be profitable for America overall.
“We need to have a visa policy that allows businesses to operate efficiently at home and abroad, and that allows all professionals to be able to move back and forth between corporate offices,” expresses the Peterson associate.
Could such notions be prosperous for the international search engine optimization markets? What do you think?