American Manufacturing: Rise, Fall, and Revival

Timeline of Main Events in American Manufacturing (1791-2025)

• December 5, 1791: Alexander Hamilton submits his "Report on Manufactures" to Congress, outlining his vision for the United States to become a modern industrial powerhouse through protective tariffs, industry subsidies, and infrastructure development.
  

• Mid-20th Century (Post-WWII to 1970s): The United States becomes the world's undisputed manufacturing superpower.
  

• 1960s: Considered a "golden era" of U.S. manufacturing. Nearly 17 million Americans are employed in the sector, contributing close to 28% of the nation's GDP. The U.S. leads globally in industries like automobiles (Detroit), steel (Pittsburgh), aerospace (Boeing), and computing (IBM).
  

• 1970s: Manufacturing employment peaks at 19.5 million Americans. However, by the late 1970s, the sector began to lose momentum due to rising labour costs, global competition, and shifting economic priorities.
  

• 1980s: The U.S. government, under President Ronald Reagan, embraced free-market policies, including deregulation, tax cuts, and global trade, leading to reduced support for domestic industries and weakening of labour unions.
  

• Late 1970s - 1980s Onward: A wave of "offshoring" begins as American companies move production to countries with cheaper labour and fewer regulations, initially Japan and Taiwan, later China, Mexico, and Southeast Asia.
  

• 1972: President Richard Nixon's visit to China laid the groundwork for diplomatic and economic ties between the two countries.
  

• 1978: Deng Xiaoping launches sweeping economic reforms in China, opening its economy to the world and setting the stage for its rise as a manufacturing hub.
  

• 1979: Under President Jimmy Carter, the U.S. formally establishes diplomatic relations with China and signs a trade agreement granting Chinese goods access to American markets.
  

• Late 1970s - 2001: China gradually transforms from an agrarian economy to a significant global manufacturing player.
  

• 2001: China joins the World Trade Organisation (WTO), gaining greater access to global markets and further accelerating its transformation into the "world's factory."
  

• 2001-2010s: China's share of global manufacturing output significantly increases, becoming the world's largest manufacturing nation. Simultaneously, America's share of global manufacturing value added drops.
  

• 2017: During his first term, President Donald Trump made reviving American manufacturing a central part of his economic agenda, adopting a more protectionist approach to trade.
  

• 2017-2019: The Trump administration imposes tariffs on imported steel and aluminium and launches a trade war with China, imposing tariffs on over $350 billion worth of Chinese goods. U.S. manufacturing employment sees a modest increase.
  

• 2018: The Trump administration replaces NAFTA with the USMCA (United States–Mexico–Canada Agreement). Tariffs on imported steel and aluminium lead to a surge in U.S. steel prices.
  

• 2020: The COVID-19 pandemic disrupts global supply chains, causing a significant drop in U.S. manufacturing employment, wiping out earlier gains.
  

• Post-2020: The Biden administration embraces the "Make in America" initiative, shifting focus from tariffs to federal legislation and significant industrial policy investments.
  

• 2022: The Biden administration passes major legislation, including the CHIPS and Science Act, the Inflation Reduction Act, and the Infrastructure Investment and Jobs Act, allocating nearly a trillion dollars towards boosting domestic manufacturing in semiconductors, clean energy, and infrastructure.
  

• 2023: Manufacturing construction spending in the U.S. hits a record high, driven by investments related to the CHIPS Act and other initiatives. However, manufacturing output shows only a marginal increase.
  

• 2025: Now in his second term, President Trump is again prioritising tariffs to revitalise American manufacturing, leading to a new wave of investment announcements from domestic and international companies across various sectors. Companies like Hyundai announce significant investments in US manufacturing.

Cast of Characters and Brief Bios:

• Alexander Hamilton (1755-1804): The first Secretary of the Treasury of the United States. In 1791, he submitted his "Report on Manufactures," a foundational document advocating for government policies to promote industrial development in the young nation. He envisioned a strong manufacturing sector as crucial for America's economic strength and sovereignty.
  

• Thomas Jefferson (1743-1826): The third President of the United States. While Hamilton championed manufacturing, Jefferson favoured an agrarian society composed primarily of farmers.
  

• Ronald Reagan (1911-2004): The 40th President of the United States (1981-1989). His administration implemented free-market policies, including deregulation and tax cuts, and prioritised global trade, which contributed to the rise of offshoring of American manufacturing.
  

• Richard Nixon (1913-1994): The 37th President of the United States (1969-1974). His historic visit to China in 1972 laid the groundwork for establishing diplomatic and economic ties between the two countries.
  

• Jimmy Carter (born 1924): The 39th President of the United States (1977-1981). Under his presidency, the U.S. formally established diplomatic relations with China in 1979 and signed a significant trade agreement.
  

• Deng Xiaoping (1904-1997): Paramount leader of the People's Republic of China from 1978 to 1992. He launched sweeping economic reforms in 1978, opening China's economy to foreign investment and trade, which was instrumental in its rise as a global manufacturing hub.
  

• Bill Clinton (born 1946): The 42nd President of the United States (1993-2001). His administration supported China's entry into the World Trade Organisation (WTO).
  

• George W. Bush (born 1946): The 43rd President of the United States (2001-2009). China officially joined the WTO during its presidency.
  

• Barack Obama (born 1961): The 44th President of the United States (2009-2017). His administration also addressed the need to strengthen American manufacturing.
  

• Donald Trump (born 1946): The 45th President of the United States (2017-2021) and the current President (2025-present). During his first term, he implemented protectionist trade policies, including tariffs on steel and aluminium and a trade war with China, aiming to revive domestic manufacturing. In his second term (as of 2025), he continues to prioritise tariffs.
  

• Joe Biden (born 1942): The 46th President of the United States (2021-2025). His administration embraced the "Make in America" initiative, focusing on significant federal investments through legislation like the CHIPS Act and the Inflation Reduction Act to boost domestic manufacturing in key sectors.
  

• Shyam Gowtham: The author of the article "Can American manufacturing be made great again?", provides a historical overview and analysis of the trends in American manufacturing.