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Will Services Follow Manufacturing into Decline?
The service sector, now nearly three quarters of the U.S. gross national product, may be headed toward the same global noncompetitiveness as manufacturing. Deregulation of U.S. communications and financial markets has helped drive U.S. industries into global competitive leadership, but success may be producing a familiar complacency that repeats in services the same insularity that has damaged manufacturing. This report on a multiphase study shows that warning signs have already begun to appear. U.S. companies are paying insufficient attention to customers and quality and overemphasizing scale economies.