Unsettling signs for U.S. manufacturers

U.S. Manufacturing Innovation at Risk, a report by Dr. Joel Popkin, lists five warning signs as to why downward trends in U.S. manufacturing innovation pose a serious threat to America's long-term economic growth.

1. Manufacturing output has grown only 15 percent since the last recession—half the pace averaged in recoveries in the last half-century.
2. Total plant and equipment investment has risen at half the pace seen in the last half-century of recoveries. Manufacturing capacity is growing at less than 1 percent annually, compared to 5 percent in the 1990s.
3. The U.S. share of global trade of manufactured products has fallen from 13 percent in the 1990s to 10 percent in 2004.
4. Manufacturing is experiencing a broadening shortage of skilled workers.
5. U.S. growth in R&D averaged only about 1 percent per year in real terms since 2000.

The report is available at www.nam.org/Popkinreport.