Issues
Manufacturing has been the engine that drives the American economy for more than a hundred years. And it will continue to, well into the 21st century. America’s future growth, security and leadership in the global economy will depend on the strength and viability of our manufacturing base. That’s why it’s so important to reverse the current ebb: the U.S. has lost more than 5 million manufacturing jobs since 2000 – almost 17 percent of all manufacturing jobs in this country. We can maintain our leadership position in the global economy, but only if we strengthen the core of our economy - manufacturing.
America’s Economy Depends on Manufacturing:
- Manufacturing in the United States generates about $1.4 trillion, or 12 percent of our gross domestic product.
- Manufacturing is responsible for nearly two-thirds of private sector research and development in the United States.
- Over the past two decades, manufacturing productivity has increased at twice the rate of the rest of the private sector.
America Depends on Manufacturing for Good Jobs:
- Manufacturing directly employs 14 million America and supports 8 million more.
- Each manufacturing job supports as many as four other jobs, providing a boost to local economies. For example, every 100 steel or every 100 auto jobs create between 400 and 500 new jobs in the rest of the economy. This contrasts with the retail sector, where every 100 jobs generate 94 new jobs elsewhere, and the personal and service sectors, where 100 jobs create 147 new jobs. This multiplier effect reflects how manufacturing’s linkages run deep into the overall economy and means improvements in manufacturing productivity translate broadly into the economy as a whole.
- Since 1999, over 40,000 manufacturing facilities have closed.
- The resulting job losses have hit minorities, the south, and rural areas the hardest.
- One study showed that at least 52 percent, and up to 88 percent, of manufacturing workers in selected states who lost their jobs between 2000 and 2004 did so because of trade. The replacement wages for workers who found subsequent employment fall far below the wages paid in their former manufacturing jobs.
Across The Nation, Our States Depend on Manufacturing:
- Manufacturing is a vital part of the economies of most states. As a share of gross state product (GSP), in 2001 manufacturing was among the three largest private-industry sectors in all but 10 states and the District of Columbia.
- Manufacturing is the largest sector in 10 states and in the Midwest region as a whole. It’s the second largest in nine states and the third largest in 21 others.
Sources: Bureau of Labor Statistics, Industrial Union Council, National Association of Manufacturers
