Ten True Facts About Manufacturing that Affect the Shape and Success of the American Economy
1. Manufacturing’s share of US Gross Domestic Product is bigger than the entire GDP of France or the United Kingdon, as well as bigger than the combined economies of Canada and Mexico. America is the world’s manufacturing power house and bigger than the entire economies of Spain or Canada. It would be the eighth largest economy in the world if manufacturing were a country and roughly equal to the entire economy of China.
2. Manufacturing’s share of US GDP is:
76 percent larger than retail’s share,
10 percent larger than professional and business services, and
50 percent larger than agriculture, mining, utilities, and construction combined.
3. Manufacturing employees earn nearly 22 percent more than the national salary average:
In 2003, the average full-time manufacturing worker’s total compensation (wages/salary + benefits + bonuses + Social Security contributions) = $63,000
In 2003, the average US full-time worker’s total compensation = $51,000
4. Manufacturing employs 14.6 million workers directly and at least 8 million more in related industries such as services and construction.
5. In 2003, manufacturers paid $54 billion in taxes on corporate profits. Second only to the finance sector, manufacturers paid more in corporate profits than the retail, information, utilities, construction, transportation, healthcare, mining, and agriculture sectors combined.
6. The taxes on profits paid by manufacturers (federal, state, and local) were more than the combined outlays of the State, Commerce, Justice, Energy, and Interior departments, and roughly equal to outlays by the Agriculture Department in 2000.
7. Manufacturing is a productivity leader – manufacturing productivity grew 56 percent faster than overall non-farm business from 1995-2003.
Manufacturing: 4.2 percent per year
Non-farm business: 2.7 percent per year
8. Manufacturing alone contributes 62 percent of the nation’s innovation and R&D.
9. Manufacturing is the top US exporter, responsible for 64 percent of US exports. Without the foreign exchange earned by manufactured exports, the United States could not pay for its imports.
10. In the 90’s, manufacturing was the largest contributor to economic growth:
Manufacturing (plus software): 29 percent share
Services: 14 percent share
Finance, insurance, real estate: 22 percent share
Transport and utilities: 10 percent share
Source: National Association of Manufacturers based on U.S. Government data. For more information, contact Bill Canis, NAM Manufacturing Institute, (202) 637-3109 or e-mail becanis@nam.org.
