As a veteran industrial executive, Jack Truong has emerged as a powerful advocate for rebuilding America’s manufacturing base. Drawing on his extensive experience leading major companies, Truong presents a compelling case for how domestic production creates sustainable economic value.
Manufacturing’s Multiplier Effect
“For every one manufacturing job in the US, we usually create anywhere from eight to 12 additional manufacturing jobs,” explains Truong, whose leadership experience spans decades at companies like Electrolux, 3M, and James Hardie.
During his tenure at Electrolux, Jack Truong witnessed this multiplier effect firsthand. The company’s appliance manufacturing operations generated demand for steel from US Steel, which in turn sourced raw materials from mines in Minnesota. These mining operations required heavy equipment from manufacturers like Caterpillar.
“For one job that we create in Electrolux for manufacturing, we create 12 jobs of manufacturing for other industries around us,” the seasoned executive notes. “And that is how the US can really create the economy that’s based on production as opposed to spending.”
The Problem with Consumption-Based Economy
Truong highlights a concerning economic reality: approximately 75% of US GDP currently derives from consumer spending. While this might seem positive initially, he identifies fundamental problems with this model.
“Every time you see the GDP of the US grew by 1, 3, 4, 5%, it’s just pure spending from consumers. But most of them are spending based on credit cards,” says Jack Truong. “We haven’t really created any value, lasting value in the country that would allow us to really grow and reduce debt.”
This consumption-focused approach has led to diminishing economic returns. Truong observes that in the 1960s, each dollar of government debt generated approximately $7 in GDP through investments in infrastructure, highways, railroads, airports, and technological innovation. By the 1990s, as manufacturing moved overseas, that return fell to just $1 of GDP per dollar of debt. Today, Truong notes it has become negative.
The Path Forward
For Jack Truong, whose business transformation strategies have revitalized multiple companies, reversing these trends requires focused policies that incentivize domestic manufacturing. He expresses support for measures designed to bring production back to American soil.
“When you hear about bringing manufacturing jobs back to US, it’s really to ensure that people bring those manufacturing jobs back to the US, so that more jobs can be created,” Truong explains. “I think the US lost that in the mid-1990s when we just outsourced everything to China.”
Importantly, Truong emphasizes that modern manufacturing creates diverse employment opportunities beyond traditional factory work. “When we talk about manufacturing jobs, it’s not only about the skilled trade jobs, they’re also a lot of engineers and a lot of ITs,” he notes. “You need engineers to come up with all the new technologies to support the production or the invention of new products. It’s the whole ecosystem of really high-paying jobs.”
Through this perspective on American industrial revitalization, Jack Truong offers a blueprint for economic growth that addresses both job creation and sustainable development.
