Spring 2008 Industry Study. Manufacturing Industry
Abstract
America remains the world's leader in manufacturing, both in output and in productivity. In fact, the U.S. accounts for more than a quarter of all global output. That said, there are serious fault lines running through the sector that, if left unaddressed, could erode America's current dominance and harm the nation's long-term economic health. Manufacturing is also critical to our national security, as the relative health of our defense industrial base ensures our military has the right resources to prevail when the need arises. The health of these defense-related firms is intrinsically tied to the continued evolution and success of U.S. manufacturing. In 2005, the U.S. manufacturing sector, in terms of GDP, was close to $1.5 trillion. If the U.S. manufacturing sector was a country by itself, it would be the eighth largest economy in the world. Simply put, manufacturing matters--it creates jobs and raises productivity which, in turn, gives us higher standards of living. Manufacturers improve our quality of life, and create a multiplier effect that benefits other economic sectors: for each dollar of final demand in manufacturing, $1.37 of additional goods and services are needed to support that demand. The resiliency and robustness of the U.S. manufacturing sector belie the fact that it faces many serious long-term challenges. These challenges to the sector, if left unaddressed, could erode America's ability to maintain our way of life, influence its future and guarantee the national security. The included paper is a proposed letter to the incoming President on what those challenges are and policy recommendations to attend to these issues.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2008
- Accession Number
- ADA487617
Entities
Organizations
- Dwight D. Eisenhower School for National Security and Resource Strategy