You are hereVenture Outsource: Tom Donohue, U.S. Chamber of Commerce on outsourcing and offshoring

Venture Outsource: Tom Donohue, U.S. Chamber of Commerce on outsourcing and offshoring

In this exclusive interview, Thomas J. Donohue, President and CEO of the U.S. Chamber of Commerce shares insight with

Read what Mr. Donohue says about the loss of U.S. jobs; America as a competitive power; global economics of contract manufacturing outsourcing and offshoring, foreign manufacturing productivity and product quality serving global markets, and more.

Transcripts from that discussion follow.  

August 18, 2007- The United States Chamber of Commerce interacts regularly with leaders of the nation’s largest associations. Looking at the product manufacturing sector in particular, can you please share your thoughts on what some industry associations are doing to effectively communicate some of the advantages of outsourcing and offshoring for our society and how U.S. companies are looking to find ways to become more competitive and are able to do so on an international level?

Donohue: By taking advantage of greater access in new markets, U.S. companies, particularly manufacturers, have been able to strengthen their bottom lines; reduce consumer prices, focus on more profitable operations, and create new and better jobs here at home.

The Chamber issued two landmark reports on the topics of outsourcing and U.S. competitiveness. Our 2004 report titled “Jobs, Trade, Sourcing, and the Future of the American Workforce,” found little hard data to support fears about outsourcing and claims of an impending exodus of U.S. jobs overseas. Our 2006 follow-up report, “Global Engagement: How Americans Can Win and Prosper in the Worldwide Economy”, found that overwhelmingly, Americans benefit from the nation’s openness to trade; foreign investment, immigrants, and international visitors.

The 2004 report also found U.S. exports directly supported one in every five manufacturing jobs here at home. The U.S. manufacturing sector has been sourcing around the world for over 30 years, during which time our manufacturing output has more than doubled. Some manufacturing workers have lost jobs due to technological advances as well as changes driven by outsourcing and the just-in-time production process. We have supported strong retraining programs to help these workers and will continue to do so.

The bottom line: outsourcing has made the manufacturing process more efficient and productive, which has helped consumers and our overall economy. Outsourcing allows manufacturers to buy components from a vast array of suppliers, lowering costs for the manufacturer who is able to pass on the savings to consumers.



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