United States has nothing to fear from commercial engagement with the rest of
Hamilton, the first Secretary of the Treasury of the United States, and
probably the one individual most responsible for the financial and commercial
system we have lived under for over 220 years. He went on to say, "The maxims
of the United States have hitherto favored a free intercourse with all the worlds.
They have conceived that they had nothing to fear from the unrestrained competition
of commercial enterprise and have only desired to be admitted to it upon equal
at the start of this United States, there was a fierce raging debate between
the Federalists—George Washington, Hamilton, Adams, etc.—, and the Republicans—Jefferson,
Madison, and later on Monroe—, on the kind of economic system we should have.
a quasi anarchist, who while in Washington's cabinet actually was a seditionist,
met secretly with the French, behind Washington's back, to try and promote his
various causes. Washington, always the statesman, tried to get Jefferson to
work with the rest of his cabinet. The battle was so hostile that Jefferson
later resigned from the cabinet. Jeffersonian doctrine basically held an anti-British
tone, but more importantly, favored an agrarian's society (he was a large slave
and land holder), versus Hamilton's manufacturing and commerce orientation.
fierce was this divide that by 1804, while Jefferson was president, a succession
and revolt from the union was being secretly plotted—by the North!
give you this bit of history to point out an obvious fact. This is still
World Trade Contention Issues are About Your Salary
you are tired of this bit of history, but if you look at the huge contentious
issues of today these economic issues rule.
trade advocates WTO, IMF, etc., tell the various countries that they have to
open up their markets to global price levels. Many of the developing nations
are having a hard time with this concept. But let's take it a bit closer to
Depot announces the creation of ten thousand jobs—great news—with starting salaries
at $7.00 to $20.00 an hour. The same basic price for workers in India and China—except
that they are doing manufacturing to computer programming at those prices.
you make $14, 560 a year from Wal-Mart or Home Depot, you are considered at
the poverty level in the US. Yet this salary is a bonanza in many other parts
of the world.
discussion is that once China lets their currency float, their prices will go
up ... but we think that is a false assumption. First, India and China still
have massive unemployment and a huge poverty base. And there would be huge unrest
in China (something to be avoiding at all costs) if more of these unemployed
are not brought into the working world—at some level. In addition, there are
still global labor markets that are still willing to work for less—Vietnam,
When Do We Get a Raise?
the point is, there will be continued downward pressure or flatness in US salaries
unless there is a refocus on highly differentiated services, products, and growth
strategies. Going forward with a plan—need to drive a different approach here.
outsourcing and build passion in your organization.
There can only be one low cost provider in the market. Look at the Telco market—a
truly devastated sector—a landscape of struggling companies all chasing the
same supply chain strategies. It's not working! You all outsourced! And
sales are still going down. Poor performance is expected in firms that
have less than loyal workforces. They have no future with you!
Change the game—innovate your product and services. Most
customers tend to be less than satisfied with the products they get and the
services they receive. Study after study says customers will pay (more) for
getting what they actually wanted, yet most firms seem to be obsessed with
cutting cost (and services and quality and details). But unless you spend
a minute and truly consider the customer, you won't develop that high margin
product. Look at the airline industry. Given a choice on the flyers' chosen
root, they are apt to switch, since they are treated so poorly by the airlines!
Your customer does not envision their future with you!
you want to be doomed as the low cost provider—your personal salary—you need
to lead the management revolt. Enterprises are composed of people—us. Be part
of a transformation to differentiation and growth.
This article is from
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more than two decades, Ann Grackin, Chief Executive Officer,
has been on the frontlines of the Supply Chain Management technology and e-commerce
frontier, leading global strategy and technology implementations in the high
technology, semiconductor, automotive, textile, and apparel industries.
Research is a bold new supply chain research organization dedicated
to helping executives improve business performance and competitiveness.