I might be wrong, but I actually don't think it is as simple as that. Yes, it is detrimental with a too strong us-vs-them sentiment. But it is also true that the world is better off when every individual state is in good shape.
The author of the article argues that the ability to innovate within an industry niche disappears with the manufacturing. Correct or not, the problem they are pointing out is not that manufacturing is disappearing but that all capacity for intellectual development goes with it.
I'm all for balance, but I don't think the right way to achieve it is to cripple the stronger side of the scale.