Apr 30, 2019
...This doesn’t mean the U.S. should give up on manufacturing, as some have recommended. Traditionally, manufacturing has had faster productivity growth than other sectors (though the gap has narrowed in recent years). And although some industries like software, finance and biotech are likely to cluster into a few big metropolises, manufacturing can provide an anchor for the local economy of a midsized or small city. Maintaining a healthy manufacturing industry is important for ensuring a diversified economy, which tends to be associated with higher levels of national wealth. There is evidence that manufacturing is less subject to monopoly power, meaning that it gives smaller companies more of a chance to grow and thrive. And retaining manufacturing supply chains may help to support high-value industries -- for example, China’s strength in battery manufacturing is probably one reason that country is gaining strength in the electric vehicleindustry.
More from Bloomberg>>