1、 itif.org US National Power Industries Are at Risk MEGHAN OSTERTAG|NOVEMBER 2025 Instead of treating manufacturing as a monolith to be revived,policymakers must focus on national power industries.These industries protect U.S.national defense and economic security,and are eroding at an alarming rate.
2、KEY TAKEAWAYS The strongest case for revitalizing U.S.manufacturing is national power.National power industries,which include enabling,dual-use,and defense industries,are those that enable a strong military and give the United States leverage over other nations.These industries are under threat.Enab
3、ling and dual-use industries experienced the steepest drops in employment,establishments,capital investment,and value added between 2007 and 2022,outpacing declines in nonstrategic and defense sectors.When adjusting for inflation,real value added fell across all manufacturing categories,with enablin
4、g industries declining by over 30 percent,the largest drop among power industries.Defense industries,protected from global competition by federal demand,saw capital expenditures,sales,and value-added grow more than other power industries had.While the United States struggles to revive its manufactur
5、ing sector,China is focused on achieving dominance in advanced industries,giving it leverage over the United States.Unchecked Chinese dominance in power industries will translate into sustained cost advantages,persistent price,profit,and employment losses for American advanced manufacturers at the h
6、ands of Chinese market manipulations.INFORMATION TECHNOLOGY&INNOVATION FOUNDATION|NOVEMBER 2025 PAGE 2 CONTENTS Key Takeaways.1 Introduction.2 Methodology.4 Empirical Analysis.7 Implications for U.S.Power.15 Conclusion.16 Appendix 1:Full Methodology.17 Appendix 2:Industries With the Greatest Changes