Why Manufacturing

Why Manufacturing Why Manufacturing Why ManufacturingServices make up nearly two-thirds of the U.S. economy. Manufacturing accounts for only 12 percent. For many decades, economists looking at this disparity argued that manufacturing played a minor role in the modern economy, and that $1 billion generated by warehousing, transportation, and retailing produced the same economic benefits as $1 billion in production.They were wrong. Over the past decade, mora and more economists have confirmed that manufacturing is indeed different from services. It is essential to innovation, and tightly linked to our nations economic health and national security.First, while manufacturing might be a small component of the U.S. economy, its output still came to $1.9 trillion in 2012, and by itself would have made the worlds tenth largest economy. The U.S. manufacturing sector was larger than the total economies of India, Canada, Mexico, or South Korea.The United States was the worlds leading producer o f manufactured goods from 1895 through 2009. Although some experts estimate that Chinese output surpassed that of the U.S. in 2012, the United States remains the worlds largest advanced technology producer. Manufactured goods constituted 86 percent of all U.S. exports in 2010.