This Note presents research into the adjustments made by the U.S. machine tool industry as it faced the challenges of a secular decline in domestic demand compounded by the effects of economic recession and acceleration of foreign competition. It presents a picture of the industry's response and adaptation to events, the path of output and the movement of capital and labor, and the influence of government policies on these adaptations. The author considered both government policies directly related to trade effects and to declining industries, and also more general policies that may have influenced the ability of U.S. machine tool firms to react to a variety of forces unlike anything the industry had witnessed in its long history.
This report is part of the RAND Corporation note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.
Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.