| Regarding the question "Is America in decline?" there is much discussion. While some contend this is the case, others argue the reverse. After a brief discussion of both sides of the argument, I look to mature American manufacturing industries for a clue to the appropriate answer. More specifically, has the U.S. textile mill products industry, as the most mature of our "sunset" industries, entered a period of continual decline, as would be expected if America is in decline, or has the industry responded to the maturing of the economy with some coherent strategy to continue its growth and maintain its market?;Within the framework of the Product Life Cycle theory, data provided by ten of the largest firms in the industry indicate eleven management strategies which have been instrumental in keeping market share despite continuously rising competitive imports, as well as major environmental and structural changes to the industry. The analysis concludes by showing that firms will expend extensive resources to extend their product life cycle, rather than exit the industry. This conclusion is corroborated by indications from at least two other mature U.S. industries--automobiles and steel. The ability to substitute capital and technology for labor allows these industries to increase factor productivity, cutting costs and holding profit margins.;The result of the analysis extends the Product Life Cycle theory in the declining product stage, as well as offers some suggestions, not only to other mature industries in the U.S., but to maturing industries in developing countries as well. |
