Manufacturing output has been ~monotonically increasing except during the great recession for the past 3 decades. Jobs though have been basically monotonically decreasing.

We're still getting the strategic benefits of more manufacturing, just have fewer people getting their thumbs cut off in stamping machines or melted alive in steel mills.

I don't think "we" are getting benefits from more manufacturing. Surely the company CEOs and shareholders are, but the average Joe who doesn't hold shares and just needs an honest, well-paying job is not reaping any benefits.

I view manufacturing to have some parallels like farming. An advanced society is eventually going to get the employment numbers down low through inevitable automation and technology. The goal then is to continue to enjoy having the food and things you made despite not being employed in those fields. How exactly that happens is up for debate.