The role of services in manufacturing is the subject of a special chapter in the U.S. International Trade Commission's (USITC) recently released report The Economic Effects of Significant U.S. Import Restraints, Eighth Update.

The USITC, an independent, nonpartisan, factfinding federal agency, completed the report for the U.S. Trade Representative (USTR).

The chapter on the role of services in manufacturing provides an overview of trends in U.S. manufacturers' use of services and in services' contribution to manufacturing output and productivity. Among the highlights:

• More and more, manufacturing relies on services at every stage of the value chain. Services provided to manufacturers range from product design and market research to warehousing and distribution. This increasingly important role of services reflects, in large part, how manufacturers have responded to the pressure of global competition and the opportunities presented by technological innovations.

•The United States has the world's largest services economy and one of the highest shares of services in its gross domestic product in the world. Business services (i.e., services predominantly purchased by other businesses) in particular have grown rapidly relative to other sectors of the economy. The Commission's research on the value added by services shows that U.S. manufacturers are among the most intensive users of business services worldwide.

•Business services have also benefited from significant innovations that, in turn, may enhance the productivity of the users of these services, many of whom are manufacturers. The idea that innovative services are improving users' productivity is supported both by the data and by the case studies conducted for this study.

View the special topic chapter here: http://www.usitc.gov/publications/332/pub4440c.pdf

In the last several updates in The Economic Effects of Significant U.S. Import Restraints series, the USITC has produced special topic chapters exploring a variety of trade-related matters that the USTR felt were important to the trade community and the general public.

View the eighth update report here: http://www.usitc.gov/publications/332/pub4440.pdf and an earlier press release about the report here: http://www.usitc.gov/press_room/news_release/2013/er1223ll1.htm.

The Economic Effects of Significant U.S. Import Restraints: Eighth Update (Inv. No. 332-325, USITC Publication 4440, December 2013) is available on the USITC web site at http://www.usitc.gov/publications/332/pub4440.pdf.

A CD-ROM or printed copy may be requested by emailing [email protected], calling 202-205-2000 , or writing to the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.

Source: U.S. International Trade Commission