While traditionalists lament the apparent decline of our domestic manufacturing capabilities in today’s global environment, a recently-released Brookings study found that our overall output standing has not changed precipitously since 1970. True, we have fallen to second behind China in total output, but, interestingly, they absorbed the most-labor intensive processes to grow their capabilities. This is evidenced by their 2015 20% global market share requiring a reported 129 million workers at a time when our U.S. 18 % share employed a much more efficient 16 million, down from 1970’s all-time highs of about 20 million jobs.
A national economic strategy should be to cherry-pick back the most attractive jobs that were likely offshored over the past several years which would also help regain the top spot in output. The Trump presidency has shown more interest in reclaiming the manufacturing sector than the prior administration that saw job growth largely occur in the governmental and service sectors.
Clearly, the U.S. has invented, grown and retained the most technically efficient manufacturing processes and industries in the world. In many ways, China is at a point where the U.S. was decades ago. Going forward, it’s important that we protect our most valuable U.S. intellectual property. Equally important is our U.S. cultivation of entrepreneurs and tech-savvy small businesses to further grow tomorrow’s manufacturing innovations . This will ensure our continued dominance on the world productivity stage, and give us added protection in a rapidly confrontational international world of nations.