Manufacturing's Changing Role in the U.S. Economy

Does the well-reported employment shift to services imply that the U.S. is losing its industrial base? Data from the Bureau of Labor Statistics indicate that despite a declining employment share, manufacturing industries continue to account for a large proportion of output. New projections to the year 2000 show more job losses for manufacturing, but because of new technologies and productivity gains, production keeps pace with GNP growth. The foreign trade situation improves as the falling value of the dollar makes imports more expensive, but the real trade balance still remains negative. The auto industry faces slower growth due to changing demographics.