Sound advice from Europe

I heard Siemens AG CEO Peter Loscher’s speech to the Detroit Economic Club today and I wish every policymaker in America could have been there as well.
Addressing the question of whether America still matters to global companies, Loscher said the answer will always be yes because of this country’s strength in innovation, creativity and inventiveness.
But he also said the United States is poised for a unique opportunity in manufacturing, for several reasons.
First is the fact that low wages are no longer a driving factor in a world of high-tech production systems and high-value products. So companies are looking for educated, skilled labor rather than cheap labor.
He also said America’s low energy costs — 25 percent lower than Europe’s — are a “gamechanging” competitive edge. Hopefully Pesident Barack Obama will keep that in mind as he prepares his battle plan for combatting global warming. Europe has high energy costs largely because of its poorly vetted pursuit of expensive green energy. The U.S. will lose its competitive edge by adopting those same policies.
Losher said education and infrastructure are key factors when a global company decides where to locate. That should give us more impetus to improve the quality of our schools and focus education on skills needed in the new economy.
And it should be a reminder that we have to invest in maintaining our avenues of commerce, both physical and digital.
Asked what could derail America’s progress, Losher said global companies are looking for certainty that our politicians are commited to long-term policies that encourage job creation.
The current trends toward high taxes, over-regulation and big spending on government don’t pass that test.
That’s sound advice from one of Europe’s most powerful executives, and a guy who decides every year where to locate thousands of new jobs.