Jumpstart domestic manufacturing through Smart Grid

Jumpstarting domestic manufacturing through Smart Grid is like running up steps. First, the Smart Grid needs to succeed, the faster the better. This will create a hardware and software market for electrical grid modernization here in the U.S. and worldwide. Then domestic manufacturers need to design, build the manufacturing capacity, hire and train employees, and then start producing Smart Grid widgets.

But there are risks. The market may not materialize as predicted, or a foreign manufacturer will get product to market first. Maybe there will be a short term market, and demand will dry up once it is satisfied. Then all the equipment used to make the grid equipment will go unused as it depreciates in value.

Who will invest capital in such a situation? It's not the same as it was with Henry Ford who had years to design and build up manufacturing capacity.

That's the argument for government intervention, or more nicely put, government support and stimulus.

Some technical details need to be attended to for smart grid and for the manufacturing steps.

Smart Grid

Hardware needs to be "plug and play" that is, just like Microsoft puts out standards to make any piece of hardware properly designed simply work when plugged in, hardware from any vendor needs to be able to be installed and work immediately. This requires interoperability standards.

There is a risk here. China is using its own standards because it is banking on its market being big enough to make hardware custom made for its market profitable to domestic (Chinese!) manufacturers. This can be done by any big market player.

Stimulus is a bad word today. It seems that the 2009 stimulus didn't work, or at least its positive results can't be measured, because one can't measure job years created + job years saved.