The Bright Future for the Winning U.S. Manufacturing Sectors
This paper determines, through detailed analysis of tangible data, which of the 21 U.S. manufacturing sectors have continued to grow and remain globally competitive over the past decade and which have not. It also uncover whether there is any tangible market economic evidence of re-shoring of sourced products from Asia back to the United States? And seek tangible evidence of whether there has yet been any impact upon manufacturing growth from cheaper and more plentiful Oil & Gas in the United States.
Growth and Competitiveness – 9 of the 21 manufacturing sectors [82%] of output continue to grow and remain globally competitive in the U.S. [‘The Winners’] 2 of the 21 sectors [3% of output] remain globally competitive but are highly correlated to the rises and fall of the construction markets [‘Construction Cyclicals’]. And 10 of the 21 sectors [15% of output] have been and remain in decline for decades [‘The Dogs’].
Re-shoring – The’ Winners’ and the ‘Construction Cyclicals’ show increasing exports and are holding at a constant level of imports. The ‘Dogs’ continue to have increased imports but surprisingly, what little manufacturing by them that remains in the U.S. has seen some uptick in exports.
Energy Advantage – 5 sectors consume the majority of the energy for all manufacturing. All of them are likely to benefit eventually from cheap and plentiful U.S. energy. But to date only Primary Metals show visible evidence of a benefit in scale and increased exports.