The Metric Path to Global

Markets and New Jobs:

A Question*and-Answer

and Thematic Discussion

Gary P. Carver

U.S. DEPARTMENT OF COMMERCE

Technology Administration

National Institute of Standards

and Technology

Metric Program

Technology Services

Gaithersburg, MD 20899

Nisr

—QC

100

.056

NO. 5463

1994
/
NISTIR 5463

The Metric Path to Global

Markets and New Jobs:

A Question-and-Answer

and Thematic Discussion

Gary P. Carver

U.S. DEPARTMENT OF COMMERCE

Technology Administration

National Institute of Standards

and Technology

Metric Program

Technology Services

Gaithersburg, MD 20899

June 1994

U.S. DEPARTMENT OF COMMERCE

Ronald H. Brown, Secretary

TECHNOLOGY ADMINISTRATION

Mary L Good, Under Secretary for Technology

NATIONAL INSTITUTE OF STANDARDS

AND TECHNOLOGY

Aratl Prabhakar, Director

THE METRIC PATH TO GLOBAL MARKETS AND NEW JOBS:

A QUESTION-AND-ANSWER AND THEMATIC DISCUSSION

The logic for use of the metric system in the United States is strongest when metric use is viewed as an element of our national economic infrastructure, as an investment in efficiency,

and as a necessity for international competitiveness.

Keywords: exports, global markets, international trade, metric, metric conversion, metric

system, metric transition, metrication, standards, trade. Why use the

metric

system?

By encouraging use of the metric system in US. trade and commerce, the

Federal Government is helping US. industry gain advantages that will benefit

the entire Nation. Exports have been responsible for most of our domestic

economic growth in recent years. Exports are important for U.S. workers

because each $1 bUlion in merchandise exports supports almost 20,000 jobs, over seventy million Americans work in export-related jobs, and exportrelated jobs have higher than average pay. U.S. exports must compete in

foreign markets where quality, cost effectiveness, and reliability are defined

by international standards, including the metric system—which is the

international standard for measurement. By converting to use of the metric

system in trade and commerce, U.S. industry can make its products more

acceptable to foreign customers. Our metric products will sell more easily in

export markets, and that will lead to greater economic growth and more jobs

in the United States.

What are the

advantages

of metric use

for U.S.

industry?

US. industry will gain increased access to growing world markets and a

resulting increased ability to export, and it will benefit from improved

efficiency and greater competitiveness, by using the metric system.

Improvements in efficiency and competitiveness can result from the use of

the same product standards for both domestic and foreign markets, the

standardization of parts and part sizes, the ability to maintain smaller

inventories, and the inherent simplicity of the metric system. These

advantages will help U.S. industry to gain an even larger share of world

markets and create even more new high-quality jobs.

What are the

national

benefits of

metric use?

The entire Nation will benefit from the metric-driven economic expansion of

U.S. industry, as well as from the creation of new jobs. In addition, the

Nation will benefit from eliminating inefficiency in business and daily life that is caused by use of two different systems of measurement units. By

adopting the metric system as the preferred system, education and training can be improved, especially mathematics and science education. This is one

of the President's goals.

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What has

been the

experience of

U.S. firms

that have

converted?

Why can't

domestic

industries

stay

nonmetric?

What is

influencing

U.S.

industries to

be metric?

How would

education

benefit with

the metric

system?

Why can't

we keep

using two

measurement

systems?

Business enterprises that converted to the metric system usually ended up

saving money. Frequently, metric conversion has been a means of

standardizing and reducing the number of sizes of supplies and parts. Some

U.S. companies that converted experienced increases in sales to imexpected

new customers, particularly foreign-owned companies operating in the

United States. Some companies reported lower costs from fewer mistakes

and less rework because switching to decimal metric units simplified their

work.

Domestic industries that ignore global realities and continue to use nonmetric measures will find that they risk increasing their costs. They risk limiting

themselves to a smaller pool of nonmetric supplier firms, paying more for

nonstandard parts and materials, and having to readjust or recalibrate metric

equipment from other industries to nonmetric specifications. Nonmetric

modular products and those that interface with outside-industry products

are especially vulnerable to the added costs of adaptmg to a metric

environment. Even in nonmetric domestic-only industries, metric standards

are beginning to appear because national standards are being "harmonized"

or brought into agreement with metric international standards.

Most U.S. industries that do business abroad are already predominantly

metric due to global sourcing of parts, service, components, and production.

The remaining nonmetric U.S. industries are increasing their metric use for

selected products and activities, or are being influenced by metrication in

other industries. Also, federal agency use of the metric system is encouraging

firms that do business with the government to use the metric system.

The biggest benefit would come in mathematics. Because there would be no

need to spend as much classroom time on cumbersome conversions among units

and on manipulating fractions^ students could spend more time on learning

mathematics. Converting to metric use will also provide an opportunity to

improve the entire mathematics curriculum and to use a simpler system of

units throughout the educational program. Upon entering the work force,

graduates would be better prepared to make metric products for the global

marketplace and to provide metric services that can be more easily exported.

It is much more efficient for business enterprises, industries, and nations to use a single measurement system instead of two. For firms, using two

measurement systems usually means two sets of tools, parts, and product

specifications, as well as repeated conversions among units. It leads to

higher overhead costs, such as when separate catalogs and package labels

with metric units must be used for products sold overseas. Using two

measxirement systems industry-wide multiplies the inefficiencies suffered by

individual firms. It adds uncertainty and potential confusion to industry

standards and marketing, and it may lead to habitual unit conversions.

Nationally, consumers face added difficulties in comparison shopping

because of the variety of units. Also, many people, businesses, and

organizations need two sets of tools.

2
Why do U.S.

exports have

to be metric?

Why is the

Federal

Government

involved?

What can

Government

leadership

accomplish?

Many of our products that are still not metric are not readily exportable. In

effect, we are imposing a trade barrier on our own goods. International

standards and the regulations of regional trading blocs require metric units

for measurements because the metric system is the international standard of

measurement. More importantly, customers in other nations have grown up

with the metric system of measurement. Foreign customers are fanriliar with

and expect—usually prefer—products made to metric measures. They are neither familiar nor comfortable with U.S. pints and ounces and inches and

pounds. On the shelves of shops in other nations, our inch-pound products are at a disadvantage. In today's highly competitive world markets, any

disadvantage quickly translates to lost sales and fewer exports. This

inevitably leads to less domestic economic growth, fewer new jobs, and a lower

standard of living than we could otherwise enjoy.

The 1988 amendments to the Metric Conversion Act direct federal agencies to convert programs relating to trade, industry, and commerce to the metric

system. The strategy is to use federal procurement, financial assistance, and

other business-related activities to encourage and help U.S. firms to convert

volxmtarily to the metric system. The Act allows exceptions to federal metric use to avoid unintended harm to U.S. firms. For example, federal agencies

are not required to use the metric system if it is "impractical or likely to cause

significant inefficiencies or loss of markets to United States firms.”

Another reason for government involvement is that just like energy,

transportation, and telecommunications, our national measurement system is an important element of our economic infrastructure. Therefore, it is appropriate that the Federal Government has the Constitutional power to

"fix the standards of weights and measures." When it amended the Metric

Conversion Act, Congress declared as U.S. policy that the metric system is the

preferred system of weights and measures for trade and commerce.

Federal Government leadership and commitment can remove the remaining

uncertainties about metric conversion and bring the big picture ” national

benefits into focus. Many non-metric firms are willing to convert. However,

they are looking to the Government to make it clear to their suppliers,

customers, and competitors that the dtne has come to convert the entire

Nation to metric usage. When the Gw '\^emment makes metric conversion a national priority, the business community will see the long-term benefits in

efficiency and international trade deriving from metric conversion as economic issues it can support. Similarly, when the Government makes a

visible commitment to metric conversion and explains the economic

necessity, the public will understand the educational, economic, and

competitive benefits, and will accept an orderly adoption of the metric

system.

3
If metric

conversion is

good for

business,

why don't

we let the

free

enterprise

system

decide?

If the federal

agencies are

converting to

metric, isn't

that enough?

What are

some of the

next steps

we could

take?

By working with industry on metrication, federal agencies found no major

barriers to the conversion of nonmetric U.S. industries. However, the federal

agencies also found that some firms believe that U.S. customers may be

imwilling to use the metric system. In actual experience, U.S. customers

readily accepted metric beverage containers, automobiles, nutrition labeling,

vitamins, and track and field events.

Some firms responded to a federal survey that they are unable to justify upfront investments in metric conversion because the benefits are diffuse and

not immediate. Some said that they do not plan to convert because their

current customers are not demanding metric products. Companies that do

not export say that there is no need for them to change to metric units.

Although such views may appropriately reflect individual firms' assessments

of their business environment, they do not reflect the national 'big picture"

economic benefits that can be gained from metric conversion. Also, such

views do not reflect the hidden costs of using two measurement systems.

Besides eliminating the costs of two measurement systems, the national

benefits include removing the self-imposed trade barrier caused by a nonstandard measurement system. Based upon the positive experiences of

firms and industries that have converted, the federal agencies have concluded

that widespread metric use will yield long-term benefits that are beyond any

one-time costs or inconveniences.

No matter how broad their national vision, the federal agencies cannot by

themselves establish the metric system as the preferred system in trade and

commerce. They ultimately need the support of private industry and the

public. It may be time for additional steps to move the Nation out of its dual-system comfort zone and to continue national progress toward

preferred metric use.

Some possible next steps might include:

1. Greater Federal Government leadership and public articulation of the

national vision.

2. Actions to encourage a broad national exchange on metric conversion.

3 Public forums to consider the interrelated interests and views of

government, industry, and the public.

4. A broadly based campaign to increase awareness of the economic

issues related to metric use and the application of metric measures in

daily life. 5. Review and revision of existing nonmetric regulations, standards, and

legislation.

6. Actions to identify and remove any impediments to metric use in

industry and to minimize any potential adverse economic effects.

4
Why do we

need any

next steps?

Industry and the public may have reached a stable dependence on two

measurement systems. The stability may be due to the perception that for

the remaining nonmetric activities, temporary costs for changing to

predominant metric use exceed expected benefits. The perception arises

partly because the continuing costs of inch-pound use are invisibly absorbed

by current accounting methods and partly because our existing dualmeasurement-system economy is passively accepted by the public. If the

economic baseline were a more efficient single-system metric economy, then

industry would see that short-term metric conversion costs are an investment

that will reduce current costs and eventually provide a large return. Cultural

attitudes will have to change to eliminate the inch-pound measurement

system from our economy.

LEADING METRIC THEMES

Theme: The isolated position of the United States as the sole nonmetric Nation.

Increasing U.S. exports and advancing U.S. participation in the global economy is hindered by our

retention of an obsolete measurement system. The United States is the only industrialized nation

that does not mainly use the metric system in its commercial and standards activities. The

incompatibility between many U.S. standards and those used in world markets forces U.S.

exporters to operate at a competitive disadvantage. The global economy requires an unimpeded

flow of goods and investments and coordinated industrial processes among nations, as well as the use of a Rowing world database of industrial information. The metric system is the measurement

system for products, processes, and information in international commerce. Nonmetric U.S.

manufacturers, exporters, and investors are faced with a choice: continue to use a costly dual

system of production (metric and nonmetric) or ask the world to make exceptions for our goods

and investments. Can U.S. trade expansion proceed successfully in the face of such a difficulty?

Isn't the real choice whether to adopt the metric system and succeed or to resist change and be left behind?

Theme: Demand offoreign customers for metric products.

Our trading partners are pressing us to meet their demand for products that conform to metric measures. For example, European Union regulations will require by the end of this decade that all products sold in Europe be labeled in metric units and all accompanying documentation be

expressed in metric units. United States negotiations with Japan on trade issues are made more

difficult by Japan's position that U.S. suppliers often fail to meet requirements for metric products.

The U.S. policy that impediments to world trade, trade barriers, and trade discrimination must be

eliminated is diminished by our own inability to meet the demand by the rest of the world that

metric measures be used in world trade.

Theme: Widespread and growing adoption of metric standards by U.S. business.

Many U.S. businesses have already adopted metric standards. Today, almost half of all U.S.

products are designed, built, and sold using metric specifications. Some entire industries make

extensive use of metric units and produce metric products. Examples of metric U.S. products are: automobiles, tractors, electronic devices, computers, machine tools and other factory equipment.

5
ball bearings, munitions, off-road and earthmoving equipment, pharmaceuticals, photographic

equipment, medical and health care equipment, and beverage containers. In addition, the U.S.

scientific community uses metric units almost exclusively. Many U.S. industries have metric

conversion under active consideration; they include commercial construction and aerospace. The

growing number of economic opportunities in foreign markets, such as the Pacific Rim countries

and the Eastern European countries from the former Soviet Union, are the driving force for metric

conversion in these industries.

Theme: The need for U.S. businesses to replace their investments in production facilities with

modem, world<lass metric facilities.

Industry periodically replaces capital assets because of obsolescence, wear, changing market

demand, and new technology availability. Firms often replace still-usable capital equipment with

the newest world-class technology to improve productivity and economic performance. In many

cases, it pays to switch to the latest technological innovations in equipment and facilities before

the existing ones wear out. Replacement also offers an opportunity make changes that will

respond to new industry directions and world standards. One of the best investments that a firm can make to conform to world standards is to convert to metric production. This will lead to

opportunities for more active participation in foreign markets and for increased efficiencies

through standardization of product lines.

Theme: Exclusive use of the metric system in research and applied technology.

Most research and development is conducted in metric units. U.S. industry uses research findings

to develop new products. Moreover, the time lag between scientific discovery and market

introduction of new products has decreased steadily. In many cases this time lag has declined

from 5 or more years to only months. Another factor is the growing proportion of new products

in a firm's output. Ten years ago, new products accounted for about 10 percent of the average

firm's line of products; now it is around 30 percent. A technological, research-dominated

economy can function more efficiently when metric measures are used in the entire product cycle:

from research through commercialization to market introduction.

Theme: The unrealized market for scientific products and systems with metric designs.

The world market's relationship with technology is not limited to derived products. Many

scientific systems and products are directly in demand for a great variety of purposes. Examples

include laboratory facilities and systems for high technology production testing and controls,

training and educational systems, scientific equipment for environmental and trace contaminant

detection, and general scientific equipment for a variety of uses. Almost all scientific equipment

and facilities are metric throughout the world and in the United States.

Theme: The need for the Federal Government to convert to the metric system to reinforce and

complement metric use in the private sector.

The Federal Government's metric conversion of its programs has two facets. First, its conversion

of regulations, grcints, and procurement leads and encourages the private sector to adopt the

metric system; and second, it must convert to keep up with and not inhibit those parts of the

6
private sector that are already using the metric system. Unfortunately, in some cases federal

agencies lag the private sector. An example of this is the miles per gallon standards for

automobile fuel consumption to reduce air pollution. By law, the standards must be stated in

miles per gallon, even though automobiles in this country and abroad are almost exclusively

metric. To express compliance with the statutes, the automobile industry must calculate the

nonmetric values. Another example is the requirement to stamp gallons per flush and gallons per

minute on bathroom fixtures. The salability of these items to foreign customers is compromised

by the unfamiliar nonmetric markings.

Theme: Ease of computation in the metric system as an aid to the training of U.S. workers for new

business opportunities.

Workers in training and retraining programs are pleasantly surprised to find that the metric

system is easier to use than the inch-pound system they have always known. The inch-pound

system requires the use of a variety of different numerical values (5280 feet per mile, 12 inches per

foot, 3 feet per yard, 32 ounces per quart, 16 ounces per pound, etc.) that require tedious

arithmetical calculation to convert from one to another. The metric system, on the other hand,

operates in multiples of 10; conversion among units requires only the movement of a decimal

point. Metric measurements remove one entire complicating area from training programs and

permit more time and attention to be spent on the essential elements of industrial processes.

Anything that eases the training of a highly skilled work force should be welcomed at this time

when there is a national need for a larger number of better trained workers.

Theme: Standards^ the Path to Global Markets.

International standards are becoming more important because world trade is becoming more

competitive. Also, regional trading blocs are establishing bodies of regulations based upon

international standards that define acceptable products within their borders. Products and

services that are exported must comply with a growing number of standards and certification

procedures. In the overwhelming majority of cases, metric measurements are used. U.S.

industries that export incur additional costs when they must meet international standards that are incompatible with U.S. standards. By removing the obstacles to exporting that result from

disparities between U.S. standards and international standards, the "harmonization," or bringing

into agreement, of standards will significantly improve U.S. global competitiveness.

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