Thursday, February 14, 2013
Tweet[IWS] CRS: U.S MANUFACTURING IN INTERNATIONAL PERSPECTIVE [11 February 2013]
IWS Documented News Service
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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
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Congressional Research Service (CRS)
U.S. Manufacturing in International Perspective
Marc Levinson, Section Research Manager
February 11, 2013
http://www.fas.org/sgp/crs/misc/R42135.pdf
[full-text, 22 pages]
Summary
The health of the U.S. manufacturing sector has long been of great concern to Congress. The
decline in manufacturing employment since the start of the 21st century has stimulated particular
congressional interest. Members have introduced hundreds of bills intended to support domestic
manufacturing activity in various ways. The proponents of such measures frequently contend that
the United States is by various measures falling behind other countries in manufacturing, and they
argue that this relative decline can be mitigated or reversed by government policy.
This report is designed to inform the debate over the health of U.S. manufacturing through a
series of charts and tables that depict the position of the United States relative to other countries
according to various metrics. Understanding which trends in manufacturing reflect factors that
may be unique to the United States and which are related to broader changes in technology or
consumer preferences may be helpful in formulating policies intended to aid firms or workers
engaged in manufacturing activity. This report does not describe or discuss specific policy
options.
The main findings are:
• The United States remained the largest manufacturing country in 2010, although
its share of global manufacturing activity has declined in recent years.
• Manufacturing output has grown more rapidly in the United States over the past
decade than in most European countries and Japan, although it has lagged China,
Korea, and other countries in Asia.
• Employment in manufacturing has fallen in most major manufacturing countries
over the past two decades. The United States saw a disproportionately large drop
between 2000 and 2010, but its decline in manufacturing employment since 1990
is in line with the changes in several European countries and Japan.
• U.S. manufacturers spend far more on research and development (R&D) than
those in any other country, but manufacturers’ R&D spending is rising more
rapidly in China, Korea, Mexico, and Taiwan.
• A large share of manufacturing R&D in the United States takes place in high-technology
sectors, particularly pharmaceutical and electronic instrument
manufacturing, whereas in other countries a far greater proportion of
manufacturers’ R&D outlays occur in medium-technology sectors such as motor
vehicle and machinery manufacturing.
Contents
Introduction ...................................................................................................................................... 1
How the U.S. Manufacturing Sector Ranks ..................................................................................... 2
The Role of Services in Manufacturing ........................................................................................... 7
Manufacturing Work ...................................................................................................................... 10
Technology and Research in Manufacturing ................................................................................. 14
Figures
Figure 1. Value Added in Manufacturing ......................................................................................... 3
Figure 2. Selected Countries’ Shares of Manufacturing Value Added ............................................. 3
Figure 3. Share of Manufacturing in National Economies .............................................................. 4
Figure 4. Change in Value Added in Manufacturing, 2000-2010 .................................................... 5
Figure 5. Domestic Value in Exports of Transport Equipment ........................................................ 6
Figure 6. Domestic Value in Exports of Electrical and Optical Equipment..................................... 6
Figure 7. Investment in Manufacturing Fixed Capital as Share of GDP, 2009 ................................ 7
Figure 8. Service-Sector Inputs into Manufacturing ........................................................................ 8
Figure 9. Services-Related Occupations in Manufacturing Industries ............................................ 9
Figure 10. Manufacturing Employment ......................................................................................... 10
Figure 11. Manufacturing Employment ......................................................................................... 10
Figure 12. Real Output per Labor Hour in Manufacturing ............................................................ 11
Figure 13. Importance of High-Tech Industries ............................................................................. 15
Figure 14. R&D in Manufacturing, 2008 ...................................................................................... 16
Figure 15. Growth in Manufacturing R&D ................................................................................... 16
Figure 16. Manufacturers’ Research Intensity in Selected Countries ............................................ 17
Tables
Table 1. Hourly Compensation Costs in Manufacturing................................................................ 13
Table 2. Hourly Compensation Costs in Selected Manufacturing Industries ................................ 14
Table 3. Comparative Research and Development Spending by Industry ..................................... 18
Table 4. Manufacturers’ R&D Spending by Sector ....................................................................... 18
Contacts
Author Contact Information........................................................................................................... 19
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