Andy Grove, one of the founders of Intel, on why the U.S. needs to get back on the stick in regards to manufacturing. First of all, we are still the largest manufacturer in the world, by the way. And we manufacture a lot of stuff that the rest of the world wants and can't make themselves. But we have a self-defeating internal story about our decline, its inevitability, and that manufacturing is not interesting anyway - all wrong!
The received wisdom is that "everybody knows manufacturing in the U.S. is dead." If you believe those things and act on them, they're going to be true. I think venture investments are influenced by the "everybody knows" factor before the first spreadsheet is run. And if you don't get the money to scale manufacturing here, you won't do it. And if you don't do it, your suppliers won't move to the United States either.
My favorite part of any city is the low-rent tilt-up building section, where amongst the muffler repair and window tinting and upholstery and martial arts supply shops, there people are making actual stuff in little businesses that are critical to our nation's economy.