The productivity paradox: low-skill jobs are lost but we can compete for more advanced manufacturing.

• Author: Loughrey, Joe
• Position: VIEWPOINT

"DO MORE WITH LESS." It's an everyday mandate in business: Get maximum results with minimum waste. And manufacturing is one economic sector that has clearly taken this rule to heart.

U.S. manufacturers have invested heavily--in information technology, robotics and other forms of automation--to stay competitive in the global economy. What took 1,000 workers to manufacture in 1950 required just 199 workers in 2005.

Of course, this productivity boom has taken its toll on manufacturing employment in states like Indiana. This is the productivity paradox--staying competitive means streamlining.

This means fewer jobs and I bad economic news in the short term. But making these tough choices is the only way that manufacturers can survive and grow in Indiana.

So, can we regain the manufacturing jobs we've lost? No ... many low-skill production jobs are gone forever. But we can compete for new opportunities in advanced manufacturing.

For example, the weak dollar has made the United States a more attractive location for manufacturing investment. With an aggressive economic development operation, Indiana has leveraged this trend to attract $4.3 billion in new investment and nearly 30,000 new jobs in manufacturing and logistics since 2005.

Indiana is also strong in several manufacturing sectors with bright prospects for future employment--medical manufacturing, for example, which is expected to grow 26% by 2014. In all, more than 85% of Central Indiana's manufacturing operations are concentrated in areas projected to add jobs over the...