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.

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.