SERVICE INDUSTRIES CREATING NEW HOT SPOTS.

SERVICE industries; CITIES & towns; EMPLOYMENT; MANUFACTURING industries; CAPITAL intensive industries

The article cites a recently released report from the Conference Board in the U.S., according to which, the rapid growth of service industries across the country is permanently changing the face of many American cities. Service industries, ranging from financial and computer firms to health care and retailing companies, will generate the majority of new jobs in virtually all parts of the country for the rest of this century. This trend is spurring the redevelopment of both big-city business districts and smaller outlying areas. The proliferation of service industries is also expected to create lucrative new markets for capital equipment manufacturers. Latest federal government data show that the service sector now accounts for nearly half of the 30 most capital intensive industries. In 1982, an estimated 80% of all communications, computing and information technology equipment sold in the country was bought by service industry firms. The continued expansion of service industries is critically linked to manufacturing growth.