Industrial Insight

manufacturing… | February 23, 2012

http://mjperry.blogspot.com/2012/02/us-manufacturing-is-open-for-business.html

Saturday, February 18, 2012

U.S. Manufacturing Is Open for Business and Doing Well; Despite, Not Because of, Government Policy
The manufacturing crisis, if that’s the word, has been jobs. Industry employed one of three workers after the war. Today, it’s one of eight. Yet this, too, is largely a measure of economic progress—because it is the result of productivity gains. Productivity is the basic measure of how much we can do with our resources, human and monetary, and increasing it is what drives wage gains and higher standards of living.

Real manufacturing output stood at about $35,000 per worker in 1947, in constant dollars. It doubled by 1980 as companies became more efficient. Today this measure is an astonishing $150,000 (see chart above). Manufacturing productivity has increased by 103% since the late 1980s, outpacing every other industry and double the 53% in the larger business economy.

This translates to gains for consumers: Prices for manufactured goods have declined 3% since the 1990s, even as overall prices rose 33%.

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