Great article. It is also important to take note that the heavily capitalized PPE based companies have been outsourcing their operations overseas for years, so what we have in the US are a collection of heavily capitalized companies that straddle the line between service and manufacturing with some strong hold on intellectual capital that can only be done in the US.
For example: Company A builds roads and bridges. It’s only customer is the government and requires massive amount of capital for equipment and a fare share of human capital as well. This industry has massive barriers to entry with very little margin built in to each project due to the slack in the industry.
Company B builds widgets for the mobile device. There are relatively few barriers of entry, but an extremely high percentage of failure. Company B makes an exit in 4–6 years and makes millions, thus pumping capital into another project.
We have become an economy based on the device with only the ability to formulate purposes on specific platforms. As we have “squeezed the balloon” over the last 150 years from an economy based on the farm, factor, cubicle, and device. We have slowly outsourced our way into a knowledge and technologically based economy that is propped up by labor driven economies overseas.