Effects of Globalization on the Gas Engine Manufacturing and Parts Industry in Indiana As Experienced By Those Working In This Sector

Abstract

Globalization has often been perceived as the culprit in the decline of employment in several manufacturing industries in the United States. The purpose of this research was to investigate how globalization affected the gas engine manufacturing and parts industry in Indiana during the period of 1998 – 2008, in order to assess the perception of industry professionals as to the characteristics that could, or have, led to globalization through offshoring and outsourcing. Additionally factors for the employment decline experienced in this industry were identified and assessed. For this study an anonymous online survey was conducted targeting individuals directly associated with this industry and holding positions in the areas of engineering and management. The survey addressed the areas of technology, education, globalization/competition and employment. The survey results identified factors such as the influx of foreign goods, quality, workforce skill sets, and automation as competitive deficiencies present in this industry. These results are in contrast to the common perception that offshoring is the main factor for the dislocation of workers related to this sector. Further research in these areas could be conducted to ascertain the interrelated connections, as well as the level of their impact on these manufacturers.