Even hotter take: manufacturing has never stopped improving.
People have been getting better at making stuff since the bayeux tapestry.

What happened is manufacturing changed focus.

For a long time manufacturing was focused on making the most useful thing you could for your home/farm/business/neighbour/community.

Then it was focused on making the most saleable items.

Right now manufacturing is focused on producing maximum profits for shareholders whole externalising all possible costs.

Manufacturing has never missed a beat, it has been fantastic at all these tasks.