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 64.9 in Q1 2022, down from 66.4 in the previous quarter, indicating that importers increased their share of U.S. consumption of manufactured goods in Q1 by 1.4 percentage points to 35.1%. This is the lowest domestic market share and highest import share since the beginning of the data series in 2005. The loss of domestic share in Q1 2022 was driven by notable declines in the U.S. share of chemical, computer, and machinery 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 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 first quarter data shows a continuation of 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. But disastrous trade policies and the overvalued U.S. dollar have negatively impacted American manufacturers and placed them at a distinct disadvantage to foreign producers. Congress and the Biden administration must recognize the urgency in passing legislation to boost U.S. manufacturing and strengthen domestic supply chains, as well as use tariffs and strongly enforce U.S. trade laws. We cannot allow American manufacturers and workers to continue to lose ground in the domestic market to foreign producers and imports.”
