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Title: Why Manufacturing (Still) Matters? And How It Can Endure

Citation Type: Miscellaneous

Publication Year: 2012

Abstract: In 1960, the manufacturing sector employed about one of every four Americans. Today, it’s one of every 10. In terms of nominal GDP, manufacturing has gone from driving 25 percent of the economy to less than half that over the past 50 years. These trends raise a natural question: Does manufacturing still matter in the U.S. economy? The answer, supplied at a recent conference held at the Federal Reserve Bank of Cleveland, is a solid “yes,” though it comes with some interesting wrinkles. While it may never provide the employment base or comprise the share of GDP it once did, U.S. manufacturing seems positioned to remain a vital part of the economy for the foreseeable future. That forecast, however, depends on whether the country can implement policies to address potential problems and capitalize on current strengths. The views expressed in this article were largely gleaned from presentations at the May 30-31, 2012, industry conference, Making It in America: Manufacturing Matters, co-sponsored by the National Association for Business Economics and the Cleveland Fed.* The conference focused on the changing dynamics and rebalancing of U.S. manufacturing industry in the global economy.

Url: https://www.clevelandfed.org/en/newsroom-and-events/publications/forefront/ff-v3n02/ff-v3n02102-why-manufacturing-still-matters-and-how-it-can-endure.aspx

User Submitted?: No

Authors: Fee, ; Kyle,

Publisher: Federal Reserve Bank of Cleveland

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

Countries: United States

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