Visualized: Globalization’s Impact on U.S. Manufacturing

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Visualized: Globalization's Impact on U.S. Manufacturing

September 5, 2024

Since the advent of the 21st century, globalization has dramatically impacted U.S. manufacturing. China's entry into the World Trade Organization in 2001 and other factors, like the North American Free Trade Agreement, have dramatically reshaped the global economy and caused a large decline in U.S. manufacturing activity.

Between 2002 and 2022, the U.S. lost more than 45,000 manufacturing firms, a reduction of 14% over 20 years. The U.S. remained the world's leading manufacturer until 2010, but now trails China by $2.4 trillion.

The losses have been uneven among different sectors, however. While the number of clothing and textile mills has fallen by more than 50% in years between 2002 and 2022, a boom in craft breweries and seltzer companies has seen the number of beverage manufacturers surge by more than 350% over that period.

For a full breakdown of how American manufacturing has shifted in the past 20 years, our friends at Visual Capitalist have compiled the following infographic based on data from the U.S. Census Bureau.

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