The Myth of American Deindustrialization: Manufacturing‘s Shift, Not Its Demise
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WASHINGTON, DC – A widely held belief that the United States has experienced notable deindustrialization in recent decades, losing ground to nations like China, is being challenged by new analysis. The narrative fueling debates around industrial policy and reshoring might potentially be based on an incomplete understanding of how American manufacturing has evolved.
Published September 2, 2025
Beyond the Narrative of Decline
Conventional wisdom often portrays a picture of a withering US manufacturing sector. However, a closer look reveals a more nuanced reality. Rather than disappearing, american industry has undergone a significant internationalization, as companies strategically pursued higher-value opportunities both domestically and abroad.
Internationalization, Not Abandonment
The shift isn’t about abandoning manufacturing, but about adapting and evolving. American companies have increasingly focused on higher-value activities within the US while expanding production networks internationally. This internationalization allows for leveraging global efficiencies and accessing new markets.
Implications for Policy and Economic Strategy
This re-evaluation of American manufacturing’s trajectory has significant implications for ongoing discussions surrounding industrial policy, economic nationalism, and the push for reshoring. Understanding the complexities of this shift is crucial for formulating effective economic strategies.
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