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Charting the Real State of the U.S. economy - Slide 13 of 23
WHAT’S HAPPENING TO THE BASE?
The growth or shrinkage of manufacturing capacity itself – as opposed to how much of it is being used – is looked at less often than capacity utilization, but tells an important story as well. Chart Thirteen shows in percentage terms the annual increases and decreases in manufacturing capacity – literally, the U.S. manufacturing base, since 1949. The two peaks coincide with the 1960s and 1990s expansions, with the rate of change during the latter period rising higher than the former but also sinking lower – and even contracting in 2003 (after the end of the 1990s expansion).
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