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What Is Manufacturing? Why Does the Definition Matter?
Report

What Is Manufacturing? Why Does the Definition Matter?



Editorial Rating

9

Qualities

  • Innovative
  • Eye Opening
  • Background

Recommendation

“Buy American” is a popular slogan, but its meaning is elusive, according to an eye-opening report from the US Congressional Research Service. The definitions of two important concepts in manufacturing – the “country of origin” and the “physical transformation” of products – are exceedingly complex, but how stakeholders and policy makers characterize those ideas will determine what steps the United States should take to energize its manufacturing base. getAbstract recommends this fascinating account of what US manufacturing statistics count and don’t count to executives, policy experts and consumers interested in the nuances surrounding the notion of “Made in the USA.”

Take-Aways

  • The identification of what constitutes US manufacturing activity is complex due to ongoing changes in the where and how of product design, production and assembly.
  • Updating the definitions of “country of origin” and “physical transformation” would more accurately depict the status of American manufacturing and help officials formulate the public policy to support it.
  • US statistics count only outputs of facilities like factories, where on-site employees convert or assemble materials into products.

About the Author

The Congressional Research Service provides policy and legal analysis to the US Congress.


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