CASE ANALYSIS : Manufacturing in the United States

Case Analysis Read the CASE ANALYSIS : Manufacturing in the United States (page 320).

Write a 5 page paper (1500 or more words) in APA format in response to  the questions :

a.        Provide an overview of this case analysis ; summarize the key points .

b.       Using Figure 13.2 (page 321), how does this data support the  case analysis .

c.        Estimate how these numbers will look over the next 10 years (2009 – 2018) based upon what you have read in this unit.

Below is a recommended outline.

2. Cover page (See APA Sample paper)

3. Introduction

a. A thesis statement

b. Purpose of paper

c. Overview of paper

4. Body (Cite sources using in – text citations.)

a. Provide an overview of this case analysis ; summarize the key points.

b. Using Figure 13.2 (page 321), how does this data support the case analysis .

c. Estimate how these numbers will look over the next 10 years (2009 – 2018) based upon what                you have read in this unit.

5. Conclusion – Summary of main points

a. Lessons Learned and Recommendations

6. References –

List the references you cited in the text of your paper according to APA format.

(Note: Do not include references that are not cited in the text of your paper)

Please find attached Page 320

CASE STUDY

Manufacturing in the United States

In what year did the United States produce its highest output of manufactured

goods? When asked to a large group, the guesses range from the 1960s to the

1990s. The correct answer is usually “last year.” Figure 13.2 illustrates this by

plotting on the right scale the real value added in manufacturing, 1960–2008.

Given that a recession began in 2008,there was a slight downturn since manufac-

turing is sensitive to the business cycle.As the graph shows, however, there is a

long-run upward trend in manufacturing output that is interrupted briefly by the

occasional recession.

The left scale shows manufacturing employment.Employment peaked in 1979 at

19,426,000, and began a long-run decline after that. In 1980 the United States

entered a mild recession,and then a more severe one in 1981–1982.Manufacturing

employment recovered some of its losses in 1984,but continued its trend downward.

Within the story of the growth of manufacturing output, there are a couple

of other stories not directly shown in the graph. First, there is the story of

manufacturing relocation within the United States. Traditional industrial

states in the north central part of the United States, such as Ohio and

Michigan, have seen many jobs leave for other parts of the country. Some

jobs have gone overseas, but quite a few have also gone to southern states

such as South Carolina,Tennessee, and Texas.When coupled with the overall

decline in the total number of jobs, the plight of older manufacturing states

has been grim. This has also contributed to the mistaken perception that the

United States no longer has a vibrant manufacturing sector, but the story of

Figure 13.2 is that the United States continues to produce a large and grow-

ing quantity of manufactured goods.

The second story is the rapid increase in productivity in the manufacturing

sector. Fewer workers but more output means each worker is producing more,

and output per hour worked in manufacturing has increased at a very rapid rate.

This has occurred in part through the application of new technologies and new

processes, and while productivity growth speeds up and slows down, it is usually

much more rapid in manufacturing than in services or agriculture.Hence,even if

we consume the same quantity of manufactured goods, we would expect a

smaller share of the labor force to produce them for us.