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The American Industrial Transformation: Beyond the Deindustrialization Myth

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  • Otaviano Canuto
  • Jorge Arbache

Abstract

Conventional wisdom holds that the United States has undergone massive deindustrialization in recent decades, with the country's manufacturing sector supposedly withering as it lost ground to China. This narrative has fueled debates about industrial policy, economic nationalism, and the reshoring of manufacturing production. But what if this story is only partially true? What if, instead of disappearing, American industry simply changed its address? Conventional wisdom holds that the United States has undergone massive deindustrialization in recent decades, with the country's manufacturing sector supposedly withering as it lost ground to China. This narrative has fueled debates about industrial policy, economic nationalism, and the reshoring of manufacturing production. But what if this story is only partially true? What if, instead of disappearing, American industry simply changed its address?

Suggested Citation

  • Otaviano Canuto & Jorge Arbache, 2025. "The American Industrial Transformation: Beyond the Deindustrialization Myth," Policy briefs on Trade Dynamics and Policies 2506, Policy Center for the New South.
    • Handle: RePEc:ocp:pbtrad:pb48_25
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