While it may seem like manufacturing is no longer a big piece of the American economy, the fact is that our country continues to be responsible for the most manufacturing of any country in the world, and one of the most efficient as well. The perception that the American manufacturing sector is weakening merely comes from the fact that, unlike many other leading nations, the American economy is not as dependent on manufacturing. So what other facts might surprise you about the manufacturing sector in the United States?
- In 2012, the manufacturing sector produce $2.03 trillion worth of gross product. If it was its own economy, it would have ranked eighth in world for output.
- Manufacturing is the most efficient when it comes to generating extra money from connected sectors. For every dollar of sales in the manufacturing sector, $1.33 worth of output is created from other sectors, meaning manufacturing jobs help to create non-manufacturing jobs.
- The manufacturing sector provides the most reliable job growth. Since the beginning of 2010, the manufacturing industry has added nearly 600,000 American jobs, or almost 150,000 new jobs every year.
- The overwhelming majority of manufacturing firms are small companies like Kellett Enterprises – in 2011, companies with less than 100 employees accounted for 94% of the manufacturing firms in the United States.
- As of April of 2014, there were over 12 million American employed in a manufacturing job.
- The average yearly compensation for a manufacturing worker in 2012 was $79,662, as compared to the average non-manufacturing yearly compensation of $62,117.
- A major part of this higher compensation is healthcare costs – employer-provided healthcare payments have a high rate of growth, and contributions by employers have increased 43% over the last decade, as opposed to a wage increase of only 24.5%.
- The average manufacturing worker in 2012 as 44.7 years in age, versus 42.3 years of age for the workforce as a whole. This indicates that manufacturing needs an injection of younger workers, which many firms are working to do through STEM-centered initiatives.
As part of the United States’ manufacturing sector for over 50 years, Kellett Enterprises has seen the ups and downs of the American manufacturing sector. One thing we can be sure of is that manufacturing will continue to be a major part of America’s economy for years to come. Regardless of the ups and downs, we expect manufacturing to continue to be a strong, successful backbone that helps the country move into the future.