Outsourcing of Manufacturing Jobs Overseas

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Table of Contents

Arguments against Outsourcing Manufacturing Jobs
Conclusion
Works Cited

Outsourcing is a business idea that involves exporting domestic jobs to be done in foreign countries. The term may also be used to refer to the process of contracting part of an organization’s work to be done by a third within the same country. Over the years, outsourcing has grown and today, it is a big business in the world.

Although outsourcing benefits organizations in various ways, it has shortcomings and I am of the opinion that it should not be promoted. This paper presents an argument against outsourcing manufacturing jobs overseas.

Arguments against Outsourcing Manufacturing Jobs

According to Nothhaft (1), organizations in the United States believed that manufacturing was not meant for them. As a result, manufacturing work had to be outsourced to countries such as China. Arguably, this was meant to create room for American companies to focus on research and innovation to grow the economy. Although this worked for time, it has now reached a point where the United States feels the pain associated with outsourcing of manufacturing jobs.

Ostensibly, the idea of taking manufacturing jobs to other countries has negatively affected the American economy. Among other things, it has crippled the ability of the United States to create jobs for its people (Nothhaft 1). It has also dealt a serious blow to America’s ability to invent for the future. Generally, research indicates that outsourcing manufacturing jobs also implies outsourcing innovation since the two happen to be tightly linked. By outsourcing innovation, both research and development in the United States have been affected.

Drawing from a study by Ashe-Edmunds (1), outsourcing manufacturing jobs impacts consumers negatively. Seemingly, consumers are disturbed by the fact that companies have to give away domestic jobs to be done abroad while many people remain jobless. While the outsourcing company may reap short-term benefits, the economy of the nation eventually gets affected. The fact that jobs have to be done by foreigners implies that money has to move from the domestic market to the foreign market. In addition, lack of employment means that the unemployed citizens will not be able to spend since they do not have an income. By not spending, it is the economy that gets affected.

Considering that it is a challenge to monitor what is done by the contractor, quality may seriously be affected. Unfortunately, it may take too long to discover that the goods produced are of an inferior quality. This is mainly due to the fact that it takes time for goods to be shipped before they can be checked to ascertain their quality.

According to Levine (4), outsourcing of manufacturing jobs leads to job loss. The fact that people have to lose their jobs because of outsourcing has very serious implications to the economy. First and foremost, job loss causes a serious financial strain to American families. Those who lose their jobs as a result of outsourcing soon get to a level where providing for their families become a challenge. If not controlled, the burden eventually shifts to the government.

Conclusion

Although outsourcing has several benefits that can be enjoyed by domestic firms, it is not without drawbacks. As has been pointed out in this paper, outsourcing leads to job loss, poor quality products and eventually, a burden to the economy. It is thus imperative for governments to control outsourcing activities so as to safeguard the domestic market.