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Manufacturing jobs down, Service Up!

General Business Discussions

A place to talk about general business discussions.
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Old 12-22-2006, 01:42 PM
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This is pretty interesting. The article talks about how the % of services vs manufacturing that contributes to the GDP. It is incredible to see how manufacturing jobs have declined yet service industry jobs have increased!

We can see that happening all over. It's very difficult to outsource service jobs when someone has to come to your house to perform the service.

Manufacturing Lies - “To say that manufacturing is less significant today than it was 45 years ago is not the case,” said Norbert Ore, Chairman of the Manufacturing Business Survey Committee at the Institute for Supply Management. “To grow 3.5 percent a year-over-year is not insignificant.”

Where the math usually gets fuzzy is in comparing manufacturing’s overall share of the U.S. economy. It is indeed true that the industry’s piece of the pie has shrunk – from 23.3 percent of gross domestic product in 1960 to today’s 12 percent – but that’s a reflection of the phenomenal growth of the services industry, which has surged to 50.9 percent of GDP from 30.2 percent.

“Today, we’re paying for services that weren’t even created 45 years ago (think
lawn care or grocery delivery), and everything we buy has a service component,” he said. “Manufacturing is continuing to thrive, but the services sector is just exploding because of the type of society we’re in.”
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