government agencies but operated by companies in the private sector. World War II saw the emergency construction of manufacturing plants, the vast majority of which were paid for and owned by U.S. The government can build and own new factories, and let companies run them Today, public authorities and business leaders might use a similar approach, by arranging to have the best versions of key items like tests, ventilators, medications and vaccines made by multiple companies, using temporary deals that would bypass delays that might come from concerns about proprietary technology and competitive advantage. Army Air Forces, which, like other military organizations, served as a top manager and coordinator of the war economy. These arrangements were encouraged and facilitated by the U.S. Similarly, Boeing worked with competitors, including Lockheed and Vega, so the Boeing-designed B-17 bomber could be made at its rivals’ plants in California, as well as in the company’s home facility in Seattle.
and General Motors, the giant automakers, so that they could mass-produce engines, under licensing agreements with nominal fees.
For example, Pratt & Whitney, the top aircraft engine manufacturer, shared drawings and knowledge with Ford Motor Co. This was done on a grand scale in the U.S. Production can be scaled up fast when companies cooperateĭuring World War II, expert manufacturers shared designs and techniques with other firms, so that key items could be produced on multiple production lines, simultaneously. As the official history of the Tools Division put it soon after the war, this device “encouraged output at a rate manufacturers could not have afforded otherwise.” The lesson for 2020 is that if we want more ventilators as soon as possible, the national government needs to guarantee it will purchase them.Ģ. To encourage maximum production of machine tools, the Tools Division of the War Production Board, an emergency civilian coordinating agency, created what it called the pool-order mechanism, guaranteeing purchases of maximum output. This was the essential sector that supplied the drills, lathes, grinders and other equipment that all sorts of manufacturers needed to turn pieces of metal into finished products. During World War II, the technique of guaranteed sales was used to good effect in the machine tools industry. That was a response to the experience of World War I, during which some contractors had been left holding unwanted goods when the conflict ended suddenly in November 1918. If the government wants machines fast, it better promise to buy themĭuring World War II, manufacturers of key items were guaranteed that national government agencies would purchase all of their output, even if the equipment ultimately wasn't needed.
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