The United States needs a national policy for accelerating and sustaining productivity improvements to regain global manufacturing competitiveness. This paper establishes a basis for formulating such policy initiatives and supporting government actions. The need for national initiatives has been widely discussed. Many programs aim at improving the productivity and performance of United States manufacturing firms-including Department of Defense projects, National Science Foundation research grants to universities, and attempts to shape United States trade policy. Government policy makers appear to desire a proactive national manufacturing policy, but they lack a theory for selecting and integrating components of a meaningful policy. Such a ‘theory’, offered in this paper, would provide a foundation for effective initiatives. Critical factors necessary for competitive manufacturing success are identified, from an industry perspective, and the stimulants for an increasing level of productivity noted. Major trends that are changing the form and nature of manufacturing now and in the 1990s are described, along with their implications. A set of essential industrial needs is constructed for which national support could be useful. Finally, these needs are associated in a matrix with known and potential government programs. The conclusions and suggestions offered in this paper reflect common manufacturing-sector concerns. Although the information here is the result of a limited survey among a few industries, much consensus is evident. A more comprehensive study to extend this perspective is recommended, and should also include an assessment of conditions and needs within the small business community.
