Is US manufacturing dead? Not exactly. Contrary to this often-repeated pronouncement, total US manufacturing production has more than doubled since the 1970s and is now close to record-high levels.
Manufacturing employment, on the other hand, has fallen over this period, and the reduction in jobs is responsible for the above misconception. Although the US has outsourced some production, total manufacturing output has steadily expanded over recent decades, and significant domestic advantages create strong incentives for keeping manufacturing production onshore. In fact, the major productivity gains that have enabled labor-force reductions are among these incentives.
Join ITR Economics for our latest webinar on manufacturing. We will discuss the evolution of the sector, including key trends in technology, employment, and productivity. Attendees will also receive ITR Economics’ forecasts for total manufacturing production as well as for select subsectors, which will identify areas of opportunity and potential concern.
US manufacturing is not dead – it is alive and well. Please join us August 23 to learn more!
Lauren Saidel-Baker, CFA
Economist