Reshaping the Future and Global Competitiveness of U.S. Manufacturing

Analyst Insight: The U.S. faces critical decisions in balancing domestic production with its reliance on imported finished goods. While innovation remains a hallmark of American competitiveness, its manufacturing base has been increasingly challenged by global competition and shifts in trade patterns. 

Since 2010, U.S. imports of finished goods have risen significantly, increasing from 11% to 13% of GDP by 2024, reflecting a growing reliance on global supply chains for consumer electronics, textiles, and automotive parts.

Simultaneously, domestic manufacturing firms have declined in manufacturing employment. Since 2000, the U.S. has lost over a quarter of its manufacturing jobs, with significant offshoring of production. Despite steady output growth at 1.12% annually, labor productivity has stagnated at 0.7%, lagging gl…