#592 – 15 Facts That Can’t Be Ignored About ManufacturingPosted on
We love this recent piece by Rebecca Kennedy at businessinsider.com – US manufacturing is alive and well. We might think things are bad regarding manufacturing, but in reality, things are really very good. Check this out…
15 Facts That Can’t Be Ignored About Manufacturing
Historically speaking, there’s no doubt that the U.S manufacturing industry has had an incredible effect on the U.S economy. Through the captains of industry in the 20th century, manufacturing quite literally propelled the U.S into the World super power it is today.
When we talk about manufacturing, we’re referring to the process of transforming raw material into new products – Using whatever industrial means necessary. The production of cars, furniture, oil rig machinery and even medicines falls under the category of ‘manufacturing’.
It may sound like a dull sector, but manufacturing is the driving force behind tools and technologies used across multiple sectors. Health care, construction, solar energy, nuclear energy and automobile innovation – It all starts with creating a product, and it is human nature to constantly adapt, evolve and improve anything we create. Manufacturing is one of the key industries to drive forward R&D in the U.S, showing a 250% increase in manufacturing efficiency per employee since 1987.
Below are 15 incredible facts about the positively flourishing U.S manufacturing sector, and the exciting times that lay ahead.
- In the most recent data, manufacturers contributed $2.17 trillion to the U.S. economy. This figure has risen since the second quarter of 2009, when manufacturers contributed $1.70 trillion.
- Manufacturing accounts for 12% of the U.S. economy. For comparison, agriculture accounts for 4.8%.
- For every $1 spent in manufacturing, another $1.40 is added to the economy. This is the highest multiplier effect of any economic sector.
- At $2.1 trillion in value, U.S. manufacturing would be the 9th largest economy in the world.
- Most manufacturing firms are small. 99% have less than 500 employees, 75% of which have less than 20 employees.
- There are 12 million manufacturing workers in the U.S. That’s about 9% of the workforce.
- The average manufacturing worker earned $25.58/hour in February 2016 compared to the U.S. average of $21.32/hour.
- Over the next 10 years, 3.5 million manufacturing workers will likely be needed.
- In 2015, 92% of manufacturing workers were eligible for health insurance benefits compared to the average of 79%.
- Manufacturers consume over 30% of the nation’s energy.
- The output of the U.S. manufacturing industry is higher than ever before, even though manufacturing employment has hardly recovered since 2010.
- Manufacturers have increased productivity by over 2.5x since 1987.
- Over 75% of all private sector research and development is driven by manufacturers.
- Orders for durable goods and capital goods rose 4.9% and 3.9% respectively, in January 2016.
- Many manufacturing companies factor their receivables to improve cash flow and expand business.
These really are exciting times. We remain as positive as ever at the prospects in the manufacturing sector!