Industrial College of the Armed Forces: Industry Studies 2000: Services   [open pdf - 322KB]

The services industry is a "revolution" impacting all industries. It affects not only non-manufacturing, non-farm producers, but even those industries that make goods. By restructuring work, manufacturers can outsource segments to service providers, including assemblers of products. The services industry permits the optimization of the supply or value chain and provides increased efficiency. Although its definition is unclear, its contributions to the economy are not. The industry provides three-fourths of the gross national product (GNP) and the nation's employment. It is the major growth engine for the U.S. economy, the primary source of new jobs in the next decade. It is a new way of doing business. The services industry provides solutions.