Pursuing short term economic growth while leaving door open to future opportunities

Manufacturing or making things out of raw resources has been the source of industrial revolution. Today we continue to see manufacturing as a low margin business with minimal growth opportunities and therefore focus on high margin opportunities. Many times in the past I have spoken the importance of a balanced economy where a healthy manufacturing sector can help launch the next generation of growth opportunities for a nation or a geographical region. Today I want to highlight an underlying characteristics or skills that we have enhance to deliver on next generation of industries. 

When I talk about manufacturing I do not intend to limit myself to the industrial manufacturing but production of all physical goods. For example manufacturing of Pharmaceuticals, new materials used in high quality construction (say cheap graphene), construction of nano-materials for embedded medical tablets, nano-materials (eg. Polymer non-composites or metal matrix non-composites), as well as new generation of construction around robotics, personal manufacturing (e.g. 3D printers). 

While the above technologies do not fall under the umbrella of traditional manufacturing, these are at the bases of next generation of physical goods that will likely be consumed by the future customers. In the upcoming industries of nano-technology manufacturing for smart tools for medical and industrial production as well as alternative energy products and smart materials based production of current products (e.g. temperature controlled clothing), these manufacturing technologies will play a major role. And just like having the know how in silicon chip manufacturing helped US retain a lead during the PC revolution of  late eighties, nineties and first decade of this century, maintaining deep know how in these technologies will help US retain lead in the coming decades. 

So in summary, I remain extremely supportive of US to continue chasing the higher and higher margin industries, in IT services, finance, insurance, software (I myself squarely belong in the software industry). However at the same time to ensure readiness for emergence of new technologies and to be able to play key role in next generation industries we need to maintain a balanced approach of skills and competency development in our economy. Otherwise we expose ourselves to the risk of getting stuck in the local maxima of high margin industries of today and missing out the global maximas of future growth opportunities.