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Report on Import Penetration
Reveals Trouble in Some Manufacturing Sectors

Report on Import Penetration
Reveals Trouble in Some Manufacturing Sectors

Friday, January 11, 2008
 
The U.S. Business and Industry Council has just released its annual report on import penetration in domestic U.S. manufacturing. The study uses government data to reveal the degree to which imports have captured shares of the home markets for more 114 key U.S. manufacturing industries. Among its findings: Despite price advantages created by the weakening dollar, numerous U.S.-based manufacturers of high-tech and other capital-intensive products in 2006 lost record shares of their U.S markets to foreign-based competitors. Between 2005 and 2006, 79 of the 114 industries studied lost shares of the U.S. market to imports (import-penetration rates rose), and between 1997 and 2006, total import-penetration rate for all of the sectors grew by nearly 60 percent, says the report. Of the 79 sectors that lost U.S. market share in 2005-2006: semiconductors, aircraft, aircraft engines and engine parts, and machine tools. Another finding: 27 of the 114 sectors saw output fall (in non-inflation-adjusted terms) from 2005 to 2006. These sectors include farm machinery and equipment, motor-vehicle engines and engine parts, and special dies and tools. Adjusting for inflation expands the number of shrinking industries to 44. The report’s author is Alan Tonelson, atonelson@aol.com. USBIC is online at www.usbusiness.org.

 

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