High-Tech Distorts Manufacturing Trends

Traditional Manufacturing Has Not Kept Up With Overall Economic Growth

Traditional manufacturing (excluding computers, semiconductors, and communications equipment) has not kept pace with the growth in the rest of the economy. In 2007, the quantity of total GDP excluding computer and electronic products had increased 120% over the preceding 30 years, while the quantity in traditional manufacturing rose only 50%. Manufacturing volume declined a great deal more in the 2008-2009 recession than in the overall economy and the industry’s recovery is not complete. The MAPI Foundation estimates that traditional manufacturing value-added will achieve its pre-recession peak in the fourth quarter of 2015.