'All too often the perception is that the heyday of U.S. manufacturing is in the past, but nothing could be further from the truth. Standing by itself, U.S. manufacturing would be the eighth largest economy in the world. There are six manufacturing pillars that support today’s U.S. economy, manufacturing:
- makes the highest contribution to economic growth of any sector (Agri, Const., Info., Trans/Ware., Prof. Serv., Retail, Finance, Wholesale Trade, Health Care/Ed. Serv./Soc. Asst.;
- is responsible for more than 70 percent of private sector research and development and the center for a wide range of advanced technologies that cut energy use and lead to a cleaner environment;
- achieves a high productivity rate year in and year out, increasing by more than 50 percent in the past decade;
contributes more than 60 percent of U.S. exports or about $50 billion a month;
- pays wages and benefits that are about 25 percent higher than in non-manufacturing jobs;
- multiplies every dollar spent into an additional $1.37 in economic activity, greater than other sectors.
Even with these strengths, there are many challenges for manufacturers, especially in the area of costs and encouraging young people to pursue a career in manufacturing. Eighty one percent of respondents to the Institute/NAM 2005 Skills Gap survey said they could not find qualified workers to fill open positions. Structural costs such as taxes and health care add 31.7 percent to U.S. manufacturing costs, making it more difficult to produce from a U.S. base.
Even though it is more difficult to manufacture in the US, by itself US manufacturing would be the eighth largest economy in the world.
