Sunday’s New York Times has an interesting piece by Louis Uchitelle on American companies that continue to do much of their production in America. “Made in America” is more common than you’d think. In spite of two decades of intensified globalization, the United States remains the world’s top manufacturer, accounting for 23.8 percent of manufacturing output worldwide in 2004, compared to 24.6 percent in 1982. (This is measured by “value added,” which takes into account the dollar value created at each stage of production through the addition of materials and labor.)

Uchitelle profiles three companies — Harley-Davidson, Haas Automation, and Hiwasse Manufacturing — to see what drives their decisions to either keep their production and supply lines in America or look overseas for cheaper options. For those companies that managed to stay rooted in America, two factors stand out: the benefits gained from tariffs and other forms of protectionism, which stymied aggressive foreign competitors and sustained companies during their most vulnerable years, and the efficiencies brought about by automation, which slashed labor costs and helped American firms compete with competitors abroad who pay much lower wages (for example, Chinese firms).

But given the particular advantages they enjoy, the companies in Uchitelle’s article may be the exceptions that prove the rule. Today, with the World Trade Organization and other free trade agreements in place, it’s harder for the U.S. government to protect industries — a fact that may be good for poor people in China, India, and other developing countries, but does not bode well for Americans toiling in the manufacturing sector. Furthermore, the automation that helps American firms compete is quickly spreading throughout the world. These companies may not be able to rely on their technological edge for much longer. (Indeed, as Thomas Friedman points out in his new book, America is falling behind other countries in churning out the engineers and scientists who can fuel its future innovation.)

Victor Tan Chen Victor Tan Chen is In The Fray's editor in chief and the author of Cut Loose: Jobless and Hopeless in an Unfair Economy. Site: victortanchen.com | Facebook | Twitter: @victortanchen