The Missing Piece of American Manufacturing: Clean Energy
Posted July 2, 2013 & filed under Job Search, References
Can you guess which country invested $65.1 billion in the clean energy market during 2012? Definitely not the United States. China, one of the leading wind turbine makers and home to the world’s top nine solar producers, holds that distinction and is gung ho about closing the domestic clean energy gap ahead of its Western competitors. The United States, whose investments decreased to $35.6 billion, is quickly shrinking to the size of a blip in the rearview mirror of Chinese clean energy manufacturing. Where did we go wrong?
Where China Sees Success
Thanks to the joint presence of sweeping financial & cultural support in the communist country, Chinese clean energy manufacturing initiatives are seeing success over the American competition. State-run banks are funneling unknown billions into these endeavors and are empowering manufacturers like Sinovel Wind Group, Suntech Power, Yingli Green Energy to efficiently undercut international rivals. Yet funding alone wouldn’t have done the trick.
Though China’s energy needs still encourage vast consumption of coal and other fossil fuels, party leaders seem to be looking for alternatives to this untenable reality. Air pollution in metropolitan areas runs rampant, often reaching health advisory levels, and the government is scrambling to minimize that damage. That’s why government officials are earnestly setting, surpassing, and resetting national goals to reduce reliance on dirty energy. By 2015, China intends to have more than 40 GW of solar equipment installed (last year, the U.S. grew solar power by 76% and only reach 3.3 GW) and it intends to use the output of their domestic manufacturing to make that goal happen.
On both their home field and international turf, China is booming in a really big way. Countless jobs are opening up for the Chinese labor force as they establish their vice grip hold on this rapidly expanding market. American manufacturing, on the other hand, has been on the pitch in many ways.
U.S. Shortcomings
The Obama administration has been adamant about clean energy initiatives but has encountered thorny obstacles to widespread acceptance. Clean energy is a polarizing political issue on American soil. It invokes the spectre of global warming, which instantly divides people based on deeply held philosophies. Though there are some major proponents of clean energy on the American manufacturing stage, there are still those who obstinately declare clean energy to be a boondoggle sinkhole for taxpayer dollars.
Aggressive lobbyists from the oil, gas, coal, and nuclear industries are using their sway to keep the demand for clean energy at only marginally increasing levels. Even though there are subsidies for clean energy manufacturing available through federal credits, grants, and loan guarantees, the lacking support is keeping most manufacturers from taking off. From the average American perspective, the situation doesn’t seem as dire (our lungs aren’t inflamed by air pollution levels) so we’re less inclined to back our own solutions and we’re sorely missing out.
Clean energy manufacturing, like other manufacturing divisions, has a high multiplier effect. So, for every $1 spent in the pursuit of new manufacturing creates $1.35 in additional economic activity. Plus, there is no lack of demand for clean energy products worldwide: $269 billion were spent last year as a whole. On top of that, clean energy manufacturing jobs tend to have median wages that are 13 percent higher than the overall U.S. median meaning that any increase can be the catalyst that adds wind back to our economic propellers.
We know where we’re going wrong and how clean energy manufacturing can change the economy. So now, the question is what’s holding us back?
By James Walsh
