North American Troubles - China is to Blame - Really?

By Larry Coté, Managing Director, Lean Advisors with Rorry Harding, Senior Consultant

A national newspaper recently reported on how some countries are losing their competitive edge and quality of life due to a shift from value-added production to non-productive activities that expand bureaucracy. The article points out Canada as a case in point, but notes similar trends in other nations.

In Canada, there's a noticeable decline in living standards over the past several years, characterized by scarce high-paying jobs, rising taxes, and increasing levels of debt (country and personal). All these factors are contributing to the struggle to improve the standard of living.

Contrastingly, some countries have realized that a thriving economy needs to produce actual products competitively on a global scale. Notably, China recognized this early on and saw a huge opportunity. They now effectively manufacture/assemble goods traditionally made in North America and export them back at a profit.

The article suggests a straightforward solution for economic growth and improved living standards: curb excessive government spending and ease businesses' burden by cutting unnecessary red tape and administrative hurdles that waste resources without adding value. This transformation would be a critical step towards turning the economy around.

The concern is these ongoing discussions continue within the bloated bureaucratic sectors about potential reductions in wasteful processes and have little impact because (you guessed it) decision- making gets bogged down in the bureaucracy. Businesses and the economy require immediate, practical short-term solutions that can be implemented now and allow them to survive.

Businesses should learn and commit to a structured approach, acknowledging and eliminating widespread inefficiency. Rapidly implementing Lean principles thoroughly is a tested strategy for success. Drawing from over three decades of experience in manufacturing, it's evident that companies can revamp operations into competitive entities.

It wasn't necessary to relinquish our industrial foundation in North America, and there's still an opportunity to reinforce what remains — perhaps even reclaim manufacturing that has been transferred to nations like China.

We must take responsibility. Numerous reasons have led to the decline of our manufacturing base, but blaming China alone is unjustified — as we allowed this change to happen. Restoring it is not only within our capacity but should also be considered a duty.