Current and Future Challenges for U.S. Manufacturing

38. According to the UN, U.S. Manufacturing Slipped to #2

The world does not stand still regardless of how fast American manufacturing grows. Japan’s share of global output rose from approximately 11 percent in 1980 to just over 20 percent within about a decade and a half. Yet Japan’s share subsequently shrank to 9.7 percent by 2012. When Japan’s proportion was at its highest, China began to expand manufacturing production relentlessly. From a low of about 3.4 percent two decades ago, it rose continuously to reach over 22 percent in 2012.
Is the United States still the largest manufacturing nation? Both the World Bank’s data, shown in the figure 39, as well as the United Nations statistics, shown in figure 38, confirm that China comes on top with a share of about 22 percent in 2012.
China has exceeded the U.S.’s share in global output around 2009. China’s value added manufacturing share is expanding at a rapid pace while other economies seem to be stagnating or even declining. The U.S. holds the number two spot with a 17.4 percent share compared to China’s number one spot with a 22.4 percent share. Since 2000, the U.S. share has declined by 41 percent while China’s share has grown 210 percent.

To Competitiveness

38

According to the UN, U.S. Manufacturing Slipped to #2

39

According to the World Bank, U.S and Chinese Manufacturing Are Comparable

40

Manufacturing's Share Within Countries Declines

41

Manufacturing Exports Alone Are Not Enough to Sustain U.S. Economic Growth

42

The U.S. Is the #1 Destination for Foreign Direct Investment

43

The U.S. Ranks High But Is Not the Easiest Country To Do Business In

44

Inflation-Adjusted Manufacturing Has Kept Up With the Overall Economy

45

Measuring the Quantity of Manufacturing GDP Is Distorted by High-Tech

46

Traditional Manufacturing Has Not Kept Up With Overall Economic Growth

47

The U.S. Has a Structural Cost Disadvantage

48

Among 9 Largest Trading Partners, Only France Has Higher Structural Costs Than the U.S

49

The U.S. Does Not Keep Pace With Falling Corporate Tax Rates

50

U.S. Healthcare Costs Are Skyrocketing

51

Commercial Tort Costs Climb Again

52

Despite Rhetoric, Regulations Are as Burdensome as Ever