Manufacturing is part of everyday life, however people have underestimated the importance of the manufacturing industry for many years. Manufacturing is critical to the economy and also helps to drive innovation. The United States is a world leader in manufacturing, developing processes and technologies that have had an impact on manufacturing across the globe. Manufacturing facilities are no longer the dark, dirty and dangerous places they used to be, they are now a desirable place to work and they have a focus on technology and innovation.
Here, we share with you our top 10 facts about manufacturing:
The most recent data shows that manufacturers have contributed $2.17 trillion to the U.S. economy, compared to $1.7 trillion in 2009.
Following the recession in 2008, this data tells us that the manufacturing sector is experiencing a healthy level of growth and development. If the trend continues this way, manufacturing will be able to contribute positively to the economy and also support other sectors that are still recovering from the recession.
Manufacturing accounts for 12% of the U.S. economy. For comparison, agriculture accounts for just 4.8%.
While the manufacturing sector accounts for approximately 12.5% of the U.S. economy, in comparison the agriculture sector accounts for just 4.8% of the economy. The agriculture sector relies heavily upon the manufacturing sector for things such as machinery and equipment, so in today’s economy, you can’t have one without the other.
For every $1.00 spent in manufacturing, $1.40 is added to the economy. This is the highest multiplier of any sector.
This fact is simple – the more money we invest into manufacturing, the more return on investment we will see in our economy.
At $2.1 trillion in value, U.S. manufacturing would be the 9th largest economy in the world.
If the U.S. manufacturing sector were its own country, it would rank number 9 out of 247 countries in terms of Gross Domestic Product (GDP).
Most manufacturing firms are small. 99% have less than 500 employees, 75% of which have less than 20 employees.
Smaller organisations offer employment opportunities for those who may not be able to work at a large organisation due to location, work style preferences or strict guidelines. It can also be presumed that small organisations have their own way of approaching efficiency, quality and safety, creating more diversity and the chance for innovation within the sector.
There are over 12 million manufacturing workers in the U.S. That’s about 9% of the workforce.
After the recession in 2008, employment figures in all sectors dropped dramatically. However, manufacturing has recovered well and remains one of the largest industries in terms of its number of workers. The showcases the resilience of the manufacturing sector and confirms the amount of overall employment opportunities.
Over the next 10 years, 3.5 million manufacturing workers will likely be needed.
Currently, employers say that they have a shortage of qualified and skilled workers applying for the manufacturing roles. They are unable to keep up with the increase in demand for manufactured goods, as there aren’t enough highly skilled workers available, despite the above award rates for the roles. Moving forward, manufacturing organisations will need to offer forms company-funded training along with other benefits to ensure they can keep up with the demand for skilled workers.
Manufacturers consume over 30% of the nation’s energy.
Put simply, the manufacturing industry supplies the equipment required to run the manufacturing sector. It takes energy to make energy. Although, this equipment is becoming more innovative and energy efficient every year which is all thanks to manufacturing.
The output of the U.S. manufacturing industry is higher than ever before, even though manufacturing employment has hardly recovered since 2010.
As manufacturers are more productive and innovative than ever before, manufacturing organisations are able to create more output with less input due to rapidly advancing technologies and processes.
Manufacturers have increased productivity by over 2.5x since 1987.
With the introduction of new technology, smarter processes and continual innovation, manufacturers continue to increase productivity without the need for additional workers. Higher productivity with the same amount of workers equals a higher return on investment.
In comparison, the Australian manufacturing industry has struggled to maintain is prominence over the past few years. However, it could be poised for recovery with the sector enjoying its largest improvement in employment conditions in a decade. Manufacturing jobs have increase by 40,000 in the past 12 months and productivity has returned to close to its previous peak. The sector’s output has decreased by 13% along with employment, but it looks like the industry has stabilised and profits have begun to regain some of the lost ground since the GFC.
If the Australian manufacturing sector can follow in the footsteps of the United States, it will put Australia back on the map in terms of manufacturing and will help to boost the economy.