1986–1995
“In a few moments, I will sign three agreements that will complete our negotiations with Mexico and Canada to create a North American Free Trade Agreement…We will make our case as hard and as well as we can. And, though the fight will be difficult, I deeply believe we will win. And I’d like to tell you why. First of all, because NAFTA means jobs. American jobs, and good-paying American jobs. If I didn’t believe that, I wouldn’t support this agreement.” —President Bill Clinton, 1993
In 1985, the Tool & Die Institute updated its name and purpose to be the “Tooling & Manufacturing Association.”
In 1993, President Bill Clinton signed the North American Free Trade Agreement (NAFTA) and opened the door for unrestrained trade between the U.S., Mexico and Canada. Clinton said he hoped the agreement would stir more global trade pacts.
With the expansion of trade and more realistic travel costs, U.S. manufacturers recognized the opportunities in markets around the world. Companies started building facilities outside the United States, a practice known as “offshoring,” where labor costs were lower than in the U.S. and regulations were minimal.
By the late 1980s and early 1990s, Computer Numerical Control (CNC) machining had become the standard for large-volume manufacturing and production. This development allowed manufacturing processes to speed up through automation, improving quality and dimensional consistency, and ultimately lowering production costs.
However, the economic impact of offshoring became more clear as there was a sharp decline in US manufacturing jobs, which fell drastically, reaching a peak of 20 million workers in 1979.