ABSTRACT
Some of the strongest and fastest-growing industries throughout the world are in the service sector. The consulting and financial services industries, in particular, hire thousands of college graduates each year. This fact has prompted many to suggest that manufacturing in developed countries has not only declined in importance, but is on a path toward extinction. It seems clear, however, that nations care deeply about manufacturing. This is particularly true in certain industries. Our observations suggest that, although they receive little attention in the press, the textile/apparel, machine tool,* and food industries are considered vital. Why is this so? We think it is due to at least two reasons. The first is that food and machine tools are fundamental to national security. Without an industry that manufactures and distributes food, a nation is very vulnerable if it is isolated due to a conflict; and in such situations, without machine tools, the hardware that drives the economy will grind to a halt. The second reason is employment. The textile/apparel industry employs millions of people worldwide, many in low-skill, entry-level, jobs. Without this industry a nation can face high levels of unemployment and has reduced capacity to bring people, such as immigrants, into the workforce.
