The Development And Challenges Of American Manufacturing

The outbreak of international financial crisis in 2008 makes a heavy hit on US economy, which also makes US get clear awareness of that it’s unsustainable to depend on fictitious economy excessively. Under the circumstance of industrial hollowing-out and high unemployment, US government puts forward the reindustrialization strategy in 2009 that especially emphasizes to revive the US manufacturing to readjustment industrial structure from fictitious economy to real economy, therefore re-industrialization strategy arouses a heat discussion. The paper stretches along the clue of industrialization-deindustrialization-reindustrialization to get a systematic analysis of the development process of the US manufacturing from the perspective of economic history, explore the factors on US manufacturing at different development stages and conclude the Development Law of manufactury. It defines the concept of reindustrialization and researches the effect of re-industrialization strategy from analyzing the measures. From the four indices of value added, jobs created, foreign direct investment and US ISM manufacturing index, it also argues that US re-industrialization strategy doesn’t achieve the desired effect of the revival of US manufacturing, discusses the reason why, and then rethinks US re-industrialization policy combined with manufacturing’s difficulties and challenges. We can also draw some lessons from US manufacturing development course, which provide a reference for China’s manufacturing industry.This paper is divided into five parts. The first part is an introduction which introduces the background and significance, research objects and methods, literature review and assessment, as well as innovations. The second part makes a detailed combing of US manufacturing development before the financial crisis, and this period contains two parts-industrialization and deindustrialization. The part divides the two parts by defining industrialization and deindustrialization, makes a combing of US industrialization and deindustrialization course, and then analyzes factors on manufacturing at different stages. The third part contains exploration of US reindustrialization after the financial crisis which defines the concept of reindustrialization, makes concrete analysis of US reindustrialization strategic measures, and analyzes its effects by four indices of value added, jobs created, foreign direct investment and US ISM manufacturing index in order to explain that the development of the US manufacturing sector has not been significantly improved. Then for what reasons doesn’t the reindustrialization strategy US puts forward get its goals of reviving manufacturing? Closely following the third part, the fourth part analyzes the current challenges facing the US manufacturing industry from the subjective and objective aspects, makes research on reasons why it can’t solve the current problems of US manufacturing, rethinks reindustrialization measures, and requires some enlightment for Chinese manufacturing based on what we get awareness of before. The fifth part that is the conclusion mainly summarizes the former parts, believes that reindustrialization strategy in order to revive US manufacturing deviates from the US actual development. Though it can stimulate manufacturing to maintain a relatively stable state in short-term, the strategy can neither save US manufacturing nor solve problems of economic imbalances in long-term.There are two innovations in the paper: one is that the paper combines reindustrialization with industrialization and deindustrialization, and puts current reindustrialization into the whole US manufacturing development history along the clue of industrialization-deindustrialization- reindustrialization to further understand the essence of reindustrialization strategy and define the concept of current reindustrialization. The other one is that the paper combines macro-factors with micro-factors, and divides current challenges facing USmanufacturing by subjective and objective when analyzing factors on manufacturing at different stages. The multilevel and synthesized consideration can help to deeply explore factors that influence manufacturing development, therefore makes it more clear to rethinkreindustrialization strategy.