We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
Home » Report sheds new light on supposed end of U.S. manufacturing
Forward Thinking

Report sheds new light on supposed end of U.S. manufacturing

June 13, 2017
Supply Chain Quarterly Staff
No Comments

The demise of American manufacturing is not just premature, it's flat-out wrong: That's according to a report issued yesterday by Ball State University's Center for Business and Economic Research (CBER), based in Muncie, Ind., and Conexus Indiana, a public-private sector initiative.

U.S. manufacturing and logistics industries experienced dramatic growth over the past generation, the report said. U.S. manufacturing has grown 11 percent since the dot-com bust of 2000 to 2003 and the ensuing economic turbulence of the 2001 and 2007-09 recessions, according to the report.

The United States has lost approximately 7.5 million manufacturing jobs since employment in the sector peaked in 1979, according to the report. However, it has gained more than 9 million jobs in trade, transportation, and utilities, the broadest measure of the logistics industry, the report said.

"According to folklore, this has been a terrible generation for manufacturing and those who move goods," said CBER director Michael Hicks, George and Frances Ball distinguished professor of economics and business research. "That isn't really what the data says. Indeed, 2015 was a record manufacturing ... year in inflation-adjusted dollars. While 2016 fell just short with some weakness in the first and second quarter, 2017 looks to be a new record year.

"Most of the confusion about manufacturing and logistics is due to declining employment over the past generation," Hicks said. "The fact is, manufacturing firms have become very lean, and productivity growth means more goods produced with fewer workers."

Three factors have contributed to a decline in employment, according to the report:

  • The workforce is better educated and trained, which has increased productivity;
  • mechanization has displaced some workers;
  • improved processes, such "Lean Six Sigma" and other management methods, have led to increased production.

"Trade and productivity growth shifts job opportunities to other places and other sectors even as employment grows," Hicks said. "We are at peak U.S. employment right now."

The Manufacturing and Logistics: A Generation of Volatility and Growth reports and a data spread sheet can be downloaded from the CBER website.

  • Related Articles

    Will U.S. manufacturing be back on top?

    Is a U.S. manufacturing renaissance on the horizon?

    New government report highlights best practices for improving U.S. port productivity

Recent Articles by Supply Chain Quarterly Staff

Report tracks rise in cargo theft from storage facilities

Policy groups posit plan to support supply chains hit by Covid-19, winter storms

Logistics companies turn to “cognitive technologies,” Deloitte says

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • The 3PL industry: time to reset

  • Resiliency starts with supplier mapping

  • Freight market growth expected to slow in 2021

  • Seizing the helm

  • Retailers designing stores to support inventory and logistics work, not just shopping

Featured Video

6cabd6ef 64df 4460 bb11 e90c2bdea0a5

Identifying Intralogistics Solutions to Fit Your Operation: LinkedIn Live Ep. 4

Viewer Contributed
As technology evolves, the advantages of using semi- and fully automated solutions to increase productivity and address labor shortages are clear. However, before an organization jumps fully into automation, optimization is a key step that must happen first. Intralogistics solutions, such as Raymond’s iWAREHOUSE and...

FEATURED WHITE PAPERS

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

  • Finding the Right Transportation Management Partner

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing