WASHINGTON — The Coalition for a Prosperous America (CPA) today released an update to the Domestic Market Share Index (DMSI), a new indicator that measures the success of U.S. manufacturing producers in the U.S. home market. The DMSI fell to 66.2 in Q2 2022, down from 67.2 in the previous quarter, indicating that domestic producers lost a full percentage point of market share while importers increased their share of the U.S. market for manufactured goods by one point to 33.8%. The Q2 DMSI of 66.2 matches the DMSI for Q4 2021 as the lowest quarterly DMSI and correspondingly highest import share since the beginning of available data in 2002. The loss of domestic share in Q2 2022 was driven by notable declines in the U.S. share of machinery, plastics/rubber, and electrical equipment manufacturing industries.
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 more than 11% of market share to imports, worth around $811 billion of goods.
Looking at full-year data, the annual DMSI fell by 1.1 percentage points from 67.7 in 2020 to 66.6 in 2021, the all-time lowest annual reading since data sources became available in 2002. The 2021 decline in domestic share was due to rising import share in most sectors of manufacturing, including sectors where imports were already dominant such as computers and electronics.
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 second quarter DMSI—an all-time low—is another data point in the alarming trend of American manufacturers losing even more share of the domestic market,” said Michael Stumo, CEO of CPA. “Our domestic market is the largest, most important market in the world. However, the rise of the overvalued U.S. dollar continues to damage American manufacturers and their workers. Today’s update to the DMSI should be a clear warning to Congress and the Biden administration on the urgency to reverse the trend of American manufacturers and workers losing even more ground in the domestic market to foreign producers and imports.”
Correction: An earlier version of this press release said the DMSI fell to 63.8. The correct DMSI for Q2 is 66.2.