Factoryless Goods Producers in the US

31 Pages Posted: 1 Nov 2013

See all articles by Andrew B. Bernard

Andrew B. Bernard

Dartmouth College - Tuck School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Teresa Fort

Dartmouth College - Tuck School of Business

Multiple version iconThere are 4 versions of this paper

Date Written: June 1, 2013

Abstract

This paper documents the extent and characteristics of plants and firms in the US that are outside the manufacturing sector according to official government statistics but nonetheless are heavily involved in activities related to the production of manufactured goods. Using new data on establishment activities in the Census of Wholesale Trade conducted by the US Bureau of the Census in 2002 and 2007, this paper provides evidence on so-called “factoryless goods producers” (FGPs) in the US economy. FGPs are formally in the wholesale sector but, unlike traditional wholesale establishments, FGPs design the goods they sell and coordinate the production activities. This paper documents the extent of FGPs in the wholesale sector and their employment, wages, productivity and output. Reclassifying FGP establishments to the manufacturing sector would have increased manufacturing employment anywhere from 595,000 to 1,311,000 workers in 2002 and from 431,000 to 1,934,000 workers in 2007.

Keywords: product design, offshoring, outsourcing, wholesale plants and firms, manufacturing plants and firms, contract manufacturing services

JEL Classification: L23, F61, L24, L81, D22

Suggested Citation

Bernard, Andrew B. and Fort, Teresa C., Factoryless Goods Producers in the US (June 1, 2013). Available at SSRN: https://ssrn.com/abstract=2285677 or http://dx.doi.org/10.2139/ssrn.2285677

Andrew B. Bernard

Dartmouth College - Tuck School of Business ( email )

100 Tuck Hall
Hanover, NH 03755
United States
603-646-0302 (Phone)
603-646-9084 (Fax)

HOME PAGE: http://mba.tuck.dartmouth.edu/pages/faculty/Andrew.Bernard/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Teresa C. Fort (Contact Author)

Dartmouth College - Tuck School of Business ( email )

Hanover, NH 03755
United States

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