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The process of “exporting America” continues unabated. New business formations are down approximately 25% or about four times the rate of slippage in the comparatively tiny U.K. market. This is a dramatic drop because nearly 50% of the U.S. workforce is employed by small firms. The drop-off in new business formations comes as no surprise when you consider that our corporate tax burden and cost of regulatory compliance is at or near the top of nations in the world. Further, although we allow illegal immigrants to skulk across our southern border we discourage smart technical foreign workers from coming to our shores legally. China now graduates nearly ten times as many engineers as the United States. A country of lawyers and bureaucrats will not re-start our nation’s economic engine. The deplorable state of service across all industry sectors is more than a matter of corporate survival but of national survival as we continue to witness the erosion of the service industry components of our GDP in the face of the outsourcing juggernaut. Aggressive protection of our nation’s intellectual property, particularly in the Far East, and a clamp-down on the outsourcing of technical work on government contracts are but two of a number of policies that can begin to level the playing field. Unfortunately, corporate leaders blinded by greed and the next quarterly earnings report fail to see the on-coming freight train. Government leaders, corrupt in their own way, appreciate the problem even less. We are no longer playing a domestic zero-sum game. The threat now is that if we lose to an offshore location we may stand no chance of recovering that lost business. It’s important to remember that in the late 19th century the GDP of both India and China was greater than our own: that scenario is about to be played out again. If manufacturing slipped away from the United States in a generation, it won’t take nearly as long for service activities—more easily outsourceable than manufacturing ever was—to disappear from our shores. The process, unfortunately, is already well on its way in fields as diverse as software engineering, product design, technical support, insurance underwriting, financial services, and a myriad back-office business processes. Few service activities are immune to the outsourcing threat. We are marooned on an island of service activities – we have no choice but to fight our way out. If the United States is to avoid a nuclear winter in its service industries it has no choice but to excel in service, do so at globally competitive prices, and do so now. Business and government policies need to be crafted consistent with this emerging challenge to our sovereignty or the consequences will be dire. I have captured many of these ideas in my recently published book, America's Service Meltdown. I believe the book is both timely and provocative and should be of interest to anyone concerned about the state and future of our economy. I would like to enlist your help in delivering this urgent message. More information about the author and the book can be found at http://ServiceMeltdown.com.



America's Service Meltdown: Restoring Service Excellence in the Age of the Customer