Statement on the IHS Global Insight Report
Study Says China Has Eclipsed U.S. in Manufacturing Output
March 15, 2011
A report released this week by IHS Global Insight is once again sparking debate regarding the future of American manufacturing. The report estimates that China has overtaken the U.S. as the global leader in manufacturing output by dollar amount, ending America’s 110 year run as the world’s top manufacturer. While the study is simply reflecting the inevitable impact of China’s growth and its demographics, the data also serves as an important opportunity for us to reiterate our vision for the future of U.S. manufacturing.
In interviews with the Financial Times and the Huffington Post, the Council responded to the IHS Global Insight report, stating that it only reinforces our belief that commodity manufacturing is not the source of future American strength. Instead, innovation and new services that are driven by production industries will be responsible for the next wave of America’s economic success. Also, the U.S. and other developed economies need to ensure that China follows its WTO obligations and works towards a level playing field in trade, investment and standards along with protection of intellectual property.
Still, the report highlights the incredible strength and productivity of American manufacturing and the American workforce. The U.S. is producing roughly the same amount of manufactured goods with 11.5 million workers as China is with 100 million workers. By continuing to focus on higher value products, which mean high-tech manufacturing methods, better management and more skilled workers, America’s industrial base will thrive in the global economy.
As our U.S. Manufacturing Competitiveness Initiative moves into its next phase of deep-dive analysis and in-depth conversations, we will continue to articulate our vision for a robust U.S. manufacturing sector that will serve as engine for the next generation of American prosperity.
In interviews with the Financial Times and the Huffington Post, the Council responded to the IHS Global Insight report, stating that it only reinforces our belief that commodity manufacturing is not the source of future American strength. Instead, innovation and new services that are driven by production industries will be responsible for the next wave of America’s economic success. Also, the U.S. and other developed economies need to ensure that China follows its WTO obligations and works towards a level playing field in trade, investment and standards along with protection of intellectual property.
Still, the report highlights the incredible strength and productivity of American manufacturing and the American workforce. The U.S. is producing roughly the same amount of manufactured goods with 11.5 million workers as China is with 100 million workers. By continuing to focus on higher value products, which mean high-tech manufacturing methods, better management and more skilled workers, America’s industrial base will thrive in the global economy.
As our U.S. Manufacturing Competitiveness Initiative moves into its next phase of deep-dive analysis and in-depth conversations, we will continue to articulate our vision for a robust U.S. manufacturing sector that will serve as engine for the next generation of American prosperity.
Contact:
Lisa Hanna
T 202 383 9507
F 202 682 5150
lhanna@compete.org