I think it is important to keep in mind that manufacturing output has actually been increasing over the last 50 years. It is just manufacturing employment that has fallen. That is a natural consequence of becoming more productive. See: http://mercatus.org/publication/us-manufacturing-output-vs-j

The Forbes author is arguing that it is hard to innovate when all the manufacturing expertise leaves. To support this he argues that some Kindle parts are made in China, others Taiwan, others South Korea. To me this is evidence that innovation occurs at a decentralized level. Innovation occurs when companies specialize and focus on a better battery, or screen, or lens instead of a better device. Most people on HN seem to believe that small decentralized start-ups are more innovative than bigger companies. Why is decentralization good for software innovation, but bad for hardware innovation?