In the most recent data, manufacturers contributed $2.33 trillion to the U.S. economy in the first quarter of 2018. This figure has risen since the second quarter of 2009, when manufacturers contributed $1.70 trillion. Over that same time frame, value-added output from durable goods manufacturing grew from $0.86 trillion to $1.26 trillion, with nondurable goods output up from $0.84 trillion to $1.07 trillion. In 2017, manufacturing accounted for 11.6 percent of GDP in the economy. (Source: Bureau of Economic Analysis)
For every $1.00 spent in manufacturing, another $1.89 is added to the economy. That is the highest multiplier effect of any economic sector. In addition, for every one worker in manufacturing, there are another four employees hired elsewhere. (Source: NAM calculations using IMPLAN)
The vast majority of manufacturing firms in the United States are quite small.In 2015, there were 251,774 firms in the manufacturing sector, with all but 3,813 firms considered to be small (i.e., having fewer than 500 employees). In fact, three-quarters of these firms have fewer than 20 employees. (Source: U.S. Census Bureau, Statistics of U.S. Businesses)
Almost two-thirds of manufacturers are organized as pass-through entities. Looking just at manufacturing corporations and partnerships in the most recent data, 65.6 percent are either S corporations or partnerships. The remainder are C corporations. Note that this does not include sole proprietorships. If they were included, the percentage of pass-through entities rises to 83.4 percent. (Source: Internal Revenue Service, Statistics of Income)
There are currently 12.75 million manufacturing workers in the United States, accounting for 8.6 percent of the workforce. Since the end of the Great Recession, manufacturers have hired an additional 1.3 million workers. There are 7.98 million and 4.77 million workers in durable and nondurable goods manufacturing, respectively. (Source: Bureau of Labor Statistics)
In 2017, the average manufacturing worker in the United States earned $84,832 annually, including pay and benefits. The average worker in all nonfarm industries earned $66,847. Looking specifically at wages, the average manufacturing worker earned more than $27 per hour, according to the latest figures, not including benefits. (Source: Bureau of Economic Analysis and Bureau of Labor Statistics)
Manufacturers have one of the highest percentages of workers who are eligible for health benefits provided by their employer. Indeed, 92 percent of manufacturing employees were eligible for health insurance benefits in 2015, according to the Kaiser Family Foundation. This is significantly higher than the 79 percent average for all firms. Of those who are eligible, 84 percent actually participate in their employer’s plans, i.e., the take-up rate. Three are only two other sectors – government (91 percent) and trade, communications and utilities (85 percent) that have higher take-up rates.(Source: Kaiser Family Foundation)
Manufacturers have experienced tremendous growth over the past couple decades, making them more “lean” and helping them become more competitive globally. Output per hour for all workers in the manufacturing sector has increased by more than 2.5 times since 1987. In contrast, productivity is roughly 1.7 times greater for all nonfarm businesses. Note that durable goods manufacturers have seen even greater growth, almost tripling its labor productivity over that time frame.
To help illustrate the impact to the bottom line of this growth, unit labor costs in the manufacturing sector have fallen 8.4 percent since the end of the Great Recession, with even larger declines for durable goods firms. (Source: Bureau of Labor Statistics)
Over the next decade, nearly 3½ million manufacturing jobs will likely be needed, and 2 million are expected to go unfilled due to the skills gap. Moreover, according to a recent report, 80 percent of manufacturers report a moderate or serious shortage of qualified applicants for skilled and highly-skilled production positions. (Source: Deloitte and the Manufacturing Institute)
Exports support higher-paying jobs for an increasingly educated and diverse workforce.Jobs supported by exports pay, on average, 18 percent more than other jobs. Employees in the “most trade-intensive industries” earn an average compensation of nearly $94,000, or more than 56 percent more than those in manufacturing companies that were less engaged in trade.(Source: MAPI Foundation, using data from the Bureau of Economic Analysis)
Over the past 25 years, U.S.-manufactured goods exports have quadrupled. In 1990, for example, U.S. manufacturers exported $329.5 billion in goods. By 2000, that number had more than doubled to $708.0 billion. In 2014, it reached an all-time high, for the fifth consecutive year, of $1.403 trillion, despite slowing global growth. With that said, a number of economic headwinds have dampened export demand since then, with U.S.-manufactured goods exports down 6.1 percent in 2015 to $1.317 trillion. (Source: U.S. Commerce Department)
Manufactured goods exports have grown substantially to our largest trading partners since 1990, including to Canada, Mexico and even China. Moreover, free trade agreements are an important tool for opening new markets. The United States enjoyed a $12.7 billion manufacturing trade surplus with its trade agreement partners in 2015, compared with a $639.6 billion deficit with other countries. (Source: U.S. Commerce Department)
Nearly half of all manufactured goods exports went to nations that the U.S. has free trade agreements (FTAs) with. In 2015, manufacturers in the U.S. exported $634.6 billion in goods to FTA countries, or 48.2 percent of the total. (Source: U.S. Commerce Department)
World trade in manufactured goods has more than doubled between 2000 and 2014—from $4.8 trillion to $12.2 trillion. World trade in manufactured goods greatly exceeds that of the U.S. market for those same goods. U.S. consumption of manufactured goods (domestic shipments and imports) equaled $4.1 trillion in 2014, equaling about 34 percent of global trade in manufactured goods. (Source: World Trade Organization)