Facts about American Manufacturing

February 09, 2015

- See more at: http://www.nam.org/Newsroom/Facts-About-Manufacturing/#sthash.4LujANnP.dpuf

The Loss of American Manufacturing Jobs: What Are The Facts?

by Elliott R. Morss

Introduction

Many have bemoaned the loss of US manufacturing jobs to foreign lands. The following quote by Mark Riddix is typical:

One of the biggest challenges facing the American economy is that we lack a domestic manufacturing base. Simply put we do not produce anything anymore. We buy tons of foreign goods and then wonder why we are lacking jobs. We import most of our goods which has resulted in a huge trade deficit and industrial job losses. Our economy has transitioned from an agricultural society to an industrial society to a service economy[1].

And recently, Steve Hansen has argued that job losses are associated with the growing US trade deficit. I quote Hansen:

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The burr under my saddle is jobs…. Trade deficits export jobs. Some think it is only money on balance sheet – but it is jobs that are exported when a country imports manufactured goods.[2]

In the most recent data, manufacturers contributed $2.09 trillion to the economy. This figure has steadily risen since 2009 when manufacturers contributed $1.73 trillion. The sector accounts for 12.0 percent of GDP.1 For every $1.00 spent in manufacturing, another $1.37 is added to the economy, the highest multiplier effect of any economic sector. - See more at: http://www.nam.org/Newsroom/Facts-About-Manufacturing/#sthash.4LujANnP.dpuf
  • In the most recent data, manufacturers contributed $2.09 trillion to the economy. This figure has steadily risen since 2009 when manufacturers contributed $1.73 trillion. The sector accounts for 12.0 percent of GDP.1 For every $1.00 spent in manufacturing, another $1.37 is added to the economy, the highest multiplier effect of any economic sector.2  
  • Manufacturing supports an estimated 17.6 million jobs in the United States—about one in six private-sector jobs. More than 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing.3  
  • In 2013, the average manufacturing worker in the United States earned $77,506 annually, including pay and benefits. The average worker in all industries earned $62,546.4  
  • Manufacturers in the United States are the most productive in the world, far surpassing the worker productivity of any other major manufacturing economy, leading to higher wages and living standards.5  
  • Manufacturers in the United States perform more than three-quarters of all private-sector R&D in the nation, driving more innovation than any other sector.6  
  • Taken alone, manufacturing in the United States would be the ninth-largest economy in the world.7     
- See more at: http://www.nam.org/Newsroom/Facts-About-Manufacturing/#sthash.4LujANnP.dpuf
  • In the most recent data, manufacturers contributed $2.09 trillion to the economy. This figure has steadily risen since 2009 when manufacturers contributed $1.73 trillion. The sector accounts for 12.0 percent of GDP.1 For every $1.00 spent in manufacturing, another $1.37 is added to the economy, the highest multiplier effect of any economic sector.2  
  • Manufacturing supports an estimated 17.6 million jobs in the United States—about one in six private-sector jobs. More than 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing.3  
  • In 2013, the average manufacturing worker in the United States earned $77,506 annually, including pay and benefits. The average worker in all industries earned $62,546.4  
  • Manufacturers in the United States are the most productive in the world, far surpassing the worker productivity of any other major manufacturing economy, leading to higher wages and living standards.5  
  • Manufacturers in the United States perform more than three-quarters of all private-sector R&D in the nation, driving more innovation than any other sector.6  
  • Taken alone, manufacturing in the United States would be the ninth-largest economy in the world.7     
- See more at: http://www.nam.org/Newsroom/Facts-About-Manufacturing/#sthash.4LujANnP.dpuf