Improving The Manufacturing Sector

By Ideas Lab Staff August 31, 2012

A Brookings policy framework paper argues that public policy is needed to strengthen manufacturing.

Like most industries in the United States, the manufacturing sector has had a bleak outlook for jobs growth since the recession. Though the industry performs well compared to the rest of the U.S. economy, manufacturing actually performs poorly compared to other high-wage countries, according to a Brookings policy report.

The report chiefly argues that U.S. manufacturing policies must strengthen in key areas to prove that the industry matters for high-wage jobs, commercial innovation and trade deficit reduction. Among the areas suggested for improvement:

Research and development
Lifelong training of workers at all levels
Improved access to finance
An increased role for workers and communities in creating and sharing the gains from innovative manufacturing

The paper also seeks to set a framework for manufacturing policy and answer two main questions: “Why does manufacturing matter?” and “Which manufacturing matters?”

“Manufacturing serves critical purposes that make it indispensable to the U.S. economy,” the paper states. “It remains a source of high-wage jobs for virtually all types of workers, but especially for those who would otherwise earn the lowest wages.”

But the report argues that the main challenge to creating a vibrant manufacturing sector is a lack of political will to create a national manufacturing policy. Read the report here.