True USA Manufacturing and its Impact on the Economy

Source: SnugzBlog

Did you know:

1 – Manufacturers contributed $2.25 trillion to the United States economy in 2016.

Since Q2 of 2009, when manufacturers generated $1.7 trillion, this number has been on an upward trend. Value-added output from durable goods also grew over that same time period from $0.87 trillion to $1.20 trillion and non-durable goods output from $0.85 trillion to $1.00 trillion. In 2016, manufacturing was responsible for 11.7% of GDP in the U.S. economy. (Source: Bureau of Economic Analysis)

2 – $1.00 spent in manufacturing equates to $1.89 added to the economy.

That’s the highest multiplier effect of any economic sector. Further, for each worker in manufacturing, there are an additional four hired in another industry. (Source: NAM calculations using IMPLAN)

3 – More than 3/4 of all private sector R&D is conducted by manufacturers in the USA, driving more innovation than any other sector.

Research and development in manufacturing has gone from $126.2 billion in 2000 to $229.9 billion in 2014. Pharmaceuticals, chemicals, computers, electronics and motor vehicles and parts were the most significant contributors to R&D spending in that year.  (Source: Bureau of Economic Analysis)

4 – If manufacturing in the United States was its own country it would be the ninth-largest economy in the world.

Manufacturing had $2.1 trillion in value added in 2014. Including the United States, only eight other nations could best that in terms of GDP. (Source: Bureau of Economic Analysis, International Monetary Fund)

5 – Most manufacturers in the U.S. are considered to be quite small.

In 2015, there were 251,774 manufacturers and all but 3,813 had less than 500 employees. Three-quarters had fewer than 20 people working for them. (Source: U.S. Census Bureau, Statistics of U.S. Businesses)

6 – With nearly 12.5 million workers in the United States, manufacturing takes up 8.5% of the workforce.

After the Great Recession came to an end, manufacturing companies have hired more than one million workers. 7.8 million people work in durable goods and 4.7 million work in non-durable goods manufacturing. (Source: Bureau of Labor Statistics)

7 – Virtually 50% of all manufactured goods exports went to nations that the United States has FTAs with.

The U.S. exported $634.6 billion in manufactured goods to fair trade agreement countries in 2015. 48.2% to be exact. (Source: U.S. Commerce Department)

8 – Tremendous growth over the past couple decades has made manufacturers more “lean” than ever and more competitive globally.

Output per hour has increased by more than 2.5 times since 1987 for all manufacturing workers. Productivity is about 1.7 times great for all non-farm businesses. As a matter of fact, durable goods have seen even larger growth, almost tripling its labor productivity in that same span of time. (Bureau of Labor Statistics)

9 – It’s predicted that 3.5 million manufacturing jobs will be needed in the next decade and 2 million of those openings are expected to go unfilled due to lack of skills.

(Source: Deloitte and the Manufacturing Institute)

10 – U.S. manufactured goods exports have quadrupled over the past 25 years.

Back in 1990, $329.5 billion in goods were exported. A decade later that figure more than doubled to $708 billion. Despite slowing global growth exports reached an all-time high in 2014 of $1.403 trillion. (Source: U.S. Commerce Department)

(Manufacturing Facts Source: National Association of Manufacturers)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Create a website or blog at WordPress.com

Up ↑

%d bloggers like this: