The Lion's Pride , Vol. 5 (Feb. 2016) | Page 53

The impact of a factory shutting down can be great. When a factory closes down, U.S. companies that supply certain services to the factory are also hurt. Surrounding businesses such as restaurants and other service industries may shut down due to the loss of customers. This also leads to the loss of the tax base, which supports government establishments such as schools, police, and fire departments. This results in even more unemployment and has been the cause for the financial downfall of countless U.S. towns and cities (McCormack 2009). The manufacturing process is not the only business process commonly outsourced, however. Many different types of whitecollar jobs are now outsourced too. Engineering and design usually follow the manufacturing process out of the country, both to cut costs and because engineering and design are closely collaborated with manufacturing. Many office worker jobs are now leaving the country. Call center operators are one of the most common office jobs outsourced. Clerical workers such as financial analysts and accountants are often outsourced as well as design drafters for a large range of products. Software jobs and IT jobs such as programmers are also leaving the country (Armour and Kessler 2003).