Skip to content 
In a wide-ranging, unapologetically candid interview on the “See Beyond Podcast“, hosted by Mika Tienhara, legendary manufacturing expert Sandy Munro delivered a masterclass in tough truths about the state of modern industry. The conversation touched on reshoring, vertical integration, the collapse of Western manufacturing dominance, and the dangerous psychological pitfalls plaguing decision-makers in both the U.S. and Europe. For engineers, manufacturing professionals, and industrial strategists, this conversation is essential listening and reading.
Manufacturing: The Forgotten Foundation
Sandy Munro, founder of Munro & Associates, known for his brutally honest vehicle teardowns and design innovation insights, minced no words on the existential importance of manufacturing.
“Manufacturing is the enabler for the future… As soon as you start giving away your profound knowledge — and manufacturing is a profound knowledge – you’re done.”
In his view, the shift from domestic product design and manufacturing to outsourcing was the West’s original sin. He blames not just corporate consultants but business schools like Harvard, which pushed low-cost labor strategies through offshoring that hollowed out domestic capabilities.
“You give away manufacturing, you’ve given away the farm.”
Having spent close to a decade working in China (2012–2020), Munro saw firsthand what Western leadership ignored – the intense hunger for knowledge and rapid capability development in Asia.
“I have never had such enthusiastic audiences who want to know how to design a good quality product as what I saw in China. Now they’re kicking our butts. Why? Because we were looking for cheap.”
He’s now watching the U.S. scramble to reshore critical capabilities, especially in defense, while realizing too late that foundational knowledge in materials, tooling, and process engineering has vanished domestically.
“No raw materials; no machine tool companies. No companies that really and truly know how to make things. Well, we used to give that away. Now you can’t.”
The Psychology of Collapse: Rome, Germany, and Ball Bearings
In classic Sandy Munro fashion, the historical analogies came hard and fast.
“What happened to Rome? They offshored… Eventually, you see fewer Romans in the army and more of the others. And then rebellions. Guess Why?”
He draws a clear line from ancient empires to modern manufacturing failures, blaming what he calls “the psychology of arrogance” — the belief that Western superiority is permanent and self-sustaining.
“Where there’s arrogance, there’s opportunity. That’s what Eiji Toyoda said. And the opportunity is to crush them.”
According to Munro, this blind spot explains the fall of British industrial might, Germany’s overconfidence, and the current struggles of OEMs like Volkswagen, which dismissed Tesla while ignoring software and OTA (over-the-air) capabilities.
“They thought, ‘We can’t make money on small cars. Let China have it.’ Well, how about now?”
“The Industrial Talent Crisis”
Sandy Munro doesn’t just focus on corporations, he sees the collapse of industrial education and values in North American and European societies as a root problem.
“Nobody wants to get their hands dirty. Teachers laugh when you suggest kids should learn how to be a tradesman or work in a factory.”
He recounted conversations with educators who insist every student is bound to become a lawyer or doctor, ignoring the fact that tradespeople and engineers often out-earn those professions.
“A plumber makes more money than an accountant. But oh no, ‘he touches poo-poo.’ That’s the kind of thinking we’re dealing with.”
For him, the human capital crisis isn’t about buildings or equipment; it’s about lost experience and the lack of drive to rebuild capability.
Munro was skeptical of Europe’s ability to reindustrialize, particularly with policies around green steel and hydrogen production.
“What is green steel? Instead of coke, you use hydrogen. Wow. But green hydrogen is super expensive… That $600 of steel in a car? Double it.”
While acknowledging the intent behind sustainability, he emphasized that without technical know-how and cost discipline, these transitions are doomed to stumble.
“You can’t solve this with AI. AI can write a book report, maybe, but AI cannot make anything, at least not yet.” Perhaps the most powerful part of the interview was Sandy’s philosophy of legacy.
“If you’re old and you don’t share what knowledge you’ve gained over the years, you’re evil.”
Referencing Dr. W. Edwards Deming and Eiji Toyoda, he championed the idea that sharing profound knowledge is a moral obligation, not just an economic imperative.
“Knowledge once gained is not necessarily retained. And that, right there, is why we’re in trouble.”
Author: Alistair Munro
Explore More
For deeper insights into manufacturing, lean design, and vehicle teardown analysis, visit Munro & Associates or subscribe to Munro Live. Follow us for expert breakdowns of the technologies shaping the future of the automotive and EV industries.