Goldman Sachs: Amnesty International, not customs tariffs, is the best bet on enhancing the productivity of our manufacturing

President Donald Trump aspires The return of the factory jobs Analysts said in a memorandum published on Thursday that taxes could not stimulate the re -appointment a lot on American beaches by imposing a severe tariff on American manufacturing competitors, but taxes can only stimulate the reinforcement. Instead, manufacturers must look to automation and artificial intelligence that can be constantly accessible as the best opportunity to increase local manufacturing.

Analyst Joseph Brigz and his colleagues said in the observation: “Picking at the pace of innovation-with a specificity of modern developments in robots and AI Tolidi-there is more probably a catalyst for the long-term recession in manufacturing.”

With China benefiting from automation and the cheapest work for Export fingerprint growsthe Bank of America The institute has I found rising evidence The slowdown in the USA manufacturing, including the US Statistical Office data, which shows new demands for perennial goods by 6.3 % in April. The Director of the Building of the Supply Management Institute (PMI) has decreased since March, which also indicates a shrinkage.

Productivity problems in the United States are part of a greater productivity slowdown in the field of manufacturing during the past two decades as a result of the decline in investment in the wake of the global financial crisis, in addition to a slowdown in the explosion of technological developments in the early first decade of the twentieth century, according to Goldman Sachs.

Trump’s tariff plans for China – which did not reveal the president, despite the description of A. A new business dealAIM to help the United States re -manufacture manufacturing opportunities from its economic competitor. But while they make consumer lives more expensive, they are not a drug for scientific treatment for manufacturers, the bank has argued in its note.

The observation said: “Customs duties are unlikely to lead to a lot of re -preparation because production costs in other countries are much lower than the United States for most products (even after definitions), and China is likely to continue to increase its exports against the background of costs and support industrial policy.”

Check the factory automation

Instead, analyst Briggs said, the United States must focus on another field in which it falls behind: automation.

The United States has been delayed by other manufacturing giants in carrying out artificial intelligence in the factory operations, according to Boston Consulting Institute report (BCG) Henderson Institute Issued earlier this month. Only 46 % of the respondents in the Global Global Manufacturing Survey in BCG for 1,000 manufacturers of multiple use of artificial intelligence in their factories, decreased from average by 62 % and failed 77 % in China.

“This is one of the main technologies that I think can push productivity growth in a cost -cost manner,” said Briggs. luck. “We haven’t seen it happening on a meaningful scale so far.”

Brigz said that the United States has not previously invested in the factory automation as a result of “waste” from the global financial crisis, but the United States now has a real shot in determining the priorities of the factory technology updates, given the growing everywhere and thus the ability to withstand costs for automation and AI.

Companies such as Aviation Precision MSP Manufacturing have already started adaptation accordingly. The head of the MSP and the chief operational official, Johnny Jude, recently learned of a program of artificial intelligence, able to program the machine to create micro parts, which reduces production time from an hour and a half to seven minutes for each part-more than 15 minutes necessary for the human operator to improve it.

“You are like, the sacred Snap, this will be a changing toys,” Jude He said luckJeremy was this week. “The transition from 90 minutes to 22 minutes is great, and we saw that it is improving because we learned to use the program more.”

Ended the slowdown of manufacturing

Goldman Sachs acknowledged that although automation provides the largest growth field in manufacturing productivity in the United States, it is unlikely that the slowdown of the wider manufacturing, which is universal, is universal. Briggs said the slowdown is “unusual historically”, as the technology sector matured is the potential perpetrator. Any hope of the global increase in productivity will come from collective progress and the adoption of artificial intelligence and robots on a large scale.

“The main thing that will push a significant capture in manufacturing productivity and manufacturing growth will be a sharp increase in the frequency of innovation,” said Briggs. “This type of reflection is up and technological progress is difficult to predict.”

The progress of technology can have a two -fissure benefit for the productivity of local manufacturing, both in driving factory investments and in improving technology that is installed in factories to automate tasks. But with the details of the future of artificial intelligence applications and unknown automation applications, it is difficult to predict whether the opposite of domestic manufacturing slowdown is really possible.

“We just need to see this happens before we have a lot of confidence in that dynamic being a big driver,” said Briggs.