We have already got used to downbeat economic data -- be it the growth rate, exports, youth unemployment or household debt. But the news that the combined sales of manufacturers in the country contracted last year -- for the first time since 1961 -- should ring alarm bells, and ring them very loud. 

The Bank of Korea said that manufacturers posted combined sales of 1,726 trillion won ($1.5 trillion) last year, 1.6 percent down from the previous year. It is hard to believe that this is the same sector which had grown as much as 18 percent as recently as 2010.  

A bigger problem is that the slump may go deeper. The central bank said that the sector’s contraction seemed to have worsened in the first half of this year. 

Manufacturers, too, have a pessimistic view of their short-term future. The manufacturing sector business survey index, compiled by the Korea Institute for Industrial Economics and Trade, stood at 97 for the October-December period, down from 99 for the third quarter. A BSI reading below 100 means pessimists outnumber optimists. 

The data that paint a bleak picture for the manufacturing sector should not be taken merely as yet another disappointing set of statistics. A weak manufacturing sector could threaten the foundations of the national economy.

Manufacturing has been the driving force behind the nation’s economic development, from the days when we earned foreign exchange by selling wigs and textile goods overseas. Then we shifted -- successfully -- to steelmaking, chemicals and shipbuilding, and now our electronics firms and automakers are taking over the global markets. 

In other words, we would have been unable to build this economy without the strength of the manufacturing sector. Nor can we sustain and enhance our economic strength.    

There are external and internal causes, some of which are understandable, for the drastic decline of the sector. First of all, global trade is still not showing any sign of recovery; the U.S. economy is growing at a lackluster pace; the Chinese economy is slowing down fast; and the Japanese yen is losing its value, while the Korean won is gaining strength. 

Some of these external factors may be beyond our reach, but that should not let us down, much less give up. Rather, both the government and businesses should roll up their sleeves to restore dynamism in the manufacturing sector. 

Things they have to do will include a comprehensive realignment of the nation’s industrial landscape, expediting liquidation of nonviable firms, M&As and enhancement of technological innovation.

Fostering a healthy financial sector in support of the manufacturer and improving the social environment -- like labor relations, education and training -- is important as well.   

The manufacturing sector mirrors the overall competitiveness of a nation. Moreover, the sector is essential for addressing two of the most crucial problems facing the Korean economy -- exports and job creation. The vitality of our manufacturers must be revived by all means.