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Think Tank Says U.S. Manufacturing Renaissance a Myth

Posted January 17, 2015

Under Economic Issues, International Trade Issues

(RTT News)

Notwithstanding claims by pundits that U.S. manufacturing is making a strong comeback, a report by a Washington-based think tank says the renaissance attributed to the sector is a myth and any recovery is only a cyclical phenomenon and as such lacks a structural foundation.

The report by the think tank, the Information Technology and Innovation Foundation, says that the manufacturing recovery has been tepid since the Great Recession, and flies in the face of statistics by free trade advocates that the sector is rebounding from the precipitous declines seen in the 2000s.

According to the report, there are still two million fewer jobs and 15,000 fewer manufacturing establishments than there were in 2007. In fact, at the end of 2013 (the most recent year available) real manufacturing value added (considered the best measure of the health of U.S. manufacturing) was still 3.2 percent below 2007 levels, the report says. Read more here.