I don't know the situation in the US, but in France, most shrinkage of the industrial sector is due to outsourcing within the same country. For example, car man

I don't know the situation in the US, but in France, most shrinkage of the industrial sector is due to outsourcing within the same country. For example, car manufacturers did almost everything by themselves 30 years ago in France, and they know depend a lot on "equipementier" (not sure what the right English translation would be - this refers to companies like Faurecia, which make seat, etc...). Those are counted as services, not industries. Yet, they build exactly the same thing. This has been studied extensively in France, I would be surprised if it were not the case in the US as well.