Industrial Insight

Manufacturing is still big | February 19, 2016

According to the BEA, “goods production” (agriculture and industry) today comprise only 21% of GDP value added. But if we look only at the private sector, that share rises to 24%. What’s more, a rising share of the other 76%—“services”—in effect comprise intermediate inputs to industrial companies. Just think of all the professional functions, from IT to legal to finance to PR, which used to be handled in-house by the industrials but are now outsourced. Estimates vary, but some believe a full adjustment for this “contracting-out” could push goods production up to about 33% of GDP value added.


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About author

I'm the executive vice president for a steel casting trade association, the Steel Founders' Society of America. I've got a crazy wife, five crazy children, three crazy people that married into the family, and two crazy fun little grandsons.







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