Manufacturing Descent - American GDP/Capita change by sector (1953-2024)

In just over 70 years, America has transformed from a manufacturing powerhouse into a service-dominated economy—services now make up 71% of GDP, nearly doubling their share since 1953.

Key Takeaways:

• Manufacturing has collapsed from 31% to just 10% of GDP, reflecting offshoring, automation, and the rise of global supply chains.
• Agriculture, once a major sector, is now nearly irrelevant economically—just 1% of GDP, despite feeding not just America but large parts of the world.
• Despite the dominance of services, GDP per capita has more than tripled, from $28,175 to $91,666 (adjusted for inflation), showing productivity gains and economic expansion.

Authors Note:

While I’m no economist, I was happy with how clearly this sankey graph captures some of the biggest threads in America’s economic conversation. Restoring American greatness supposedly revolves around the eradication of government and bolstering of manufacturing, but what stood out to me is how services have quietly—and massively—expanded. As a category, it seems to grow uncoupled from the rest of the traditional economic classes, almost without limit. To me the message is clear, the growth of services is the heart of the american success story, anything else, is manufactured.

Data:

The graphic compares the sectoral makeup of U.S. GDP per capita between 1953 and 2024. It’s calculated using data from the BEA, U.S. Census, and inflation-adjusted metrics, dividing each sector’s output by population. The "Sankey-style" flow shows the dramatic rebalancing of economic activity.

Related Facts:

🔧 Robots replaced riveters — U.S. factories now produce more with fewer workers, thanks to automation starting in the late '70s.

📱 Apple’s market cap now exceeds the entire 1953 U.S. GDP — a sign of how intangible services outpace industrial assets.

🌾 One farmer feeds over 160 people today, up from just 25 in 1953 — tech turned farms into high-efficiency engines.

🏛️ The Cold War built tanks; today’s budget builds trust funds — government spending shifted from defense to entitlements.

⛏️ The U.S. builds apps, not dams — construction's share dropped as physical infrastructure took a back seat to digital.