WASHINGTON — The Coalition for a Prosperous America (CPA) today released its Domestic Market Share Index (DMSI), a new indicator that measures the success of U.S. manufacturing producers in the U.S. home market. The U.S. market for manufactured goods, worth over $7 trillion last year, is the world’s largest. Since 2002, when current government data series became available, U.S. producers have lost 10% of market share to imports, worth around $700 billion of goods at today’s prices—roughly the GDP of Saudi Arabia.
This decline in U.S. manufacturing production means the loss of millions of jobs, thousands of factories and other facilities, and in some cases the loss of complete industries and the knowhow and technology that went with it. The success of the U.S. manufacturing sector depends on the ability of U.S. producers to win share in the U.S. market. The DMSI is the first index that measures this performance directly, on a quarterly and annual basis. It is calculated entirely from federal government data. The data shows that the annual DMSI has fallen from 77.3 in 2002 to 66.4 last year. In 2021, U.S. producers held 66.4% of the U.S. market and importers held 33.6%. The import share rose by more than 10 percentage points in 19 years.
CPA also calculated a DMSI for each of the 19 manufacturing sub-sectors to see sub-sector performance compared with import penetration. For example, in the Computer and Electronics sub-sector, U.S. producer share has fallen below 30%, meaning over 70% of U.S. supply of these vital products comes from imports. Additionally, CPA reports import penetration in U.S. consumption of manufactured goods by source nation, where China continues to dominate, followed by the European Union and Mexico.
“CPA’s groundbreaking new Domestic Market Share Index shows for the first time how American manufacturers have been decimated by disastrous trade policies that offshored millions of U.S. jobs and industries,” said Zach Mottl, Chairman of CPA. “The U.S. domestic market is the largest, most important market in the world. It is critical that American manufacturers, and the millions of American workers they employ, are able to win share in our home market. Our new index demonstrates the urgent need for Congress to pass legislation that boosts U.S. manufacturing, strengthens domestic supply chains, and strongly enforces U.S. trade laws to protect American workers against unfair trade activity.”