1、 itif.org Declining Manufacturing Births Contribute to US Manufacturing Woes TRELYSA LONG|JUNE 2026 Manufacturing start-ups,particularly in critical national economic power industries,are essential to the nations economic and security strength.Yet,U.S.manufacturing start-ups have declined over the l
2、ast three decades.KEY TAKEAWAYS U.S.manufacturing start-ups are declining at a time when all other start-ups are growing.From 1989 to 2023,U.S.manufacturing start-ups declined 58 percent from an index of 100 to 42.5.All other start-ups grew from 100 to 104.6.Most of the decline occurred prior to 200
3、9 and appears related to the significant drop in U.S.manufacturing competitiveness.Manufacturing start-ups have declined faster than total manufacturing firms.From 1989 to 2023,manufacturing start-ups declined from an index of 100 to 42.5,while total manufacturing firms declined from 100 to 74.8.The
4、 average manufacturing start-up is now smaller.Manufacturing start-ups average number of employees fell from 9.2 in 1989 to 7.7 in 2023.Dual-use,enabling,and nonstrategic industries had very similar rates of decline,ranging from 57 percent to 60 percent.In contrast,defense industries had a much smal
5、ler rate at 45 percent.The is likely due to facing much less overseas competition.Manufacturing start-ups have not declined because of growing industry concentration,as 82.3 percent of manufacturing industries saw a decline or slight increase(5 percent)in concentration.To avoid losing more manufactu
6、ring strength to China in economic power industries,the United States should set a national goal of at least doubling the annual number of manufacturing start-ups in its economy.INFORMATION TECHNOLOGY&INNOVATION FOUNDATION|JUNE 2026 PAGE 2 CONTENTS Key Takeaways.1 Introduction.2 Manufacturing Start-