Describe two reasons for the decline of the manufacturing sector in the US and the tremendous growth in the service sector
The manufacturing sector of a country includes all the industries and firms that are primarily involved in the process of converting raw materials into finished or intermediate goods with the help of capital, machines, labor, and resources. The manufacturing sector is also known as the secondary sector of a country that procures raw materials from the primary sector for further processing, the goods produced under the manufacturing sector are automobiles, aircraft, machines, consumer durable goods, etc.
The service sector includes different types of businesses that primarily deal in providing various types of services to customers/companies. This sector is also known as the tertiary sector of an economy that supports the secondary sector by providing auxiliary services such as banking services, transportation, warehousing, etc.
In the US the manufacturing sector has seen a steady decline in its total output and jobs since 2000. From 2000 to 2012 the US manufacturing sector registered a minimal growth of 0.5 to 0.6% per year whereas during the global financial crisis the manufacturing sector faced more than a 10% decline in its total production.
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