2001 Industry Studies: Services Industry

Abstract : In recent years, there has been substantial growth of the services industry to the point where it now constitutes 80 percent of the U.S. GDP. The pace and breadth of the changes in the services industry have spawned new services in a highly complex marketplace. The U.S. has maintained its economic strength in traditional services industries such as transportation, tourism, public utilities, finance and insurance, accounting, engineering, architecture, medical, legal, food, custodial and retail services. However, the information revolution has provided a catalyst for the provision of new information technology services and the extension of the services industry into the manufacturing sector through "outsourcing". The industry is a major employer of U.S. workers. It will provide the greatest opportunity for employment in the future. The services industry is one of the main engines of growth for the U.S. economy. As such, it is critical to the nation s competitive position in the global economy and the ability of the U.S. to pursue its national security objectives.