Abstract :
Arguments on the impact of offshoring, of both manufacturing and service jobs, have raged for many years. The dominant argument is that these movements are inevitable and that developed economies will prosper by focusing on high-value add activities. Implicit in this analysis is a traditional perspective on the economy as having two major components, manufacturing and services, and that the loss of manufacturing will not matter. This approach ignores the rapid evolution of manufacturing and the continuing integration of products and services. Without a realistic framework for analysing the economy, companies and governments are at risk of making mistakes when thinking about the strategic importance of different activities. This paper outlines a new framework for categorising companies that provides a more nuanced perspective on the structure of the economy to help decision makers, in government and industry, achieve sustained economic growth
