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February 7, 2007

Manufacturing Productivity

Heard about the demise of the U.S, manufacturing sector? Take a look at the following chart, which shows an index of total U.S. manufacturing output since 1987. Wow!

Manufacturing%20Output.jpg

If you want an even bigger WOW look at the U.S. manufacturing sector's productivity performance, measured by output per man-hour of work, over the same period, in the chart below.

Manufacturing%20Productivity%3B%20Output%20Per%20Man-Hour.jpg

The difference is Information Technology investments that have radically decreased the time it takes to get products produced and in customers hands.

JR

Posted by John Rutledge at February 7, 2007 10:48 PM

Comments

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Posted by: longtong at February 16, 2007 5:42 AM

Let’s hope the improving productivity of US manufacturing (and other sectors) along with falling deficits is able to stem the drain of our resources in the form of the terribly negative balance of trade. On the other hand, maybe it’s better that we use “theirs” instead of “ours.
Dale

Posted by: Dale Moretz at February 13, 2007 5:20 PM

For a different spin on this, plot Chinese productivity against the USA.

Then look at GDP/Energy consumption. There is a shocking amount of upside.

If I was in the cleantech business, I would move to China.

Posted by: Andrew Schmitt at February 8, 2007 1:54 PM