Facts About Manufacturing
The Top 18 Facts You Need to Know
1. Manufacturers contributed $2.91 trillion at the annual rate to the U.S. economy in Q2 2024.
Manufacturing value-added output increased from $2.881 trillion at the annual rate in Q1 to $2.910 trillion in Q2 2024. Value-added output also fell slightly in Q1 for both durable goods (down from $1.576 trillion to $1.565 trillion) and nondurable goods (down from $1.310 trillion to $1.301 trillion). Value-added output also grew in Q2 for both durable goods (up from $1.527 trillion to $1.548 trillion) and nondurable goods (up from $1.353 trillion to $1.362 trillion). Manufacturing accounted for 10.0% of value-added output in the U.S. economy in Q2. At the same time, real value-added output in the manufacturing sector increased from $2.337 trillion at the annual rate in Q1 to $2.384 trillion in Q2, as expressed in chained 2017 dollars. In Q1, real value-added output grew for both durable goods (up from $1.259 trillion to $1.277 trillion) and nondurable goods (up from $1.077 trillion to $1.105 trillion). (Source: Bureau of Economic Analysis) |
2. For every $1.00 spent in manufacturing, there is a total impact of $2.69 to the overall economy.
Including indirect and induced impacts, for every $1.00 spent in manufacturing, there is a total impact of $2.69 to the overall U.S. economy. This figure represents one of the largest sectoral multipliers in the economy. In addition, for every one worker in manufacturing, 4.8 workers are added in the overall U.S. economy, including indirect and induced impacts, and for every $1.00 earned in direct labor income in the manufacturing sector, $3.99 in labor income earned is added to the overall U.S. economy. (Source: NAM calculations using 2022 IMPLAN data) |
3. The majority of manufacturing firms in the United States are quite small.
The majority of manufacturing firms in the United States are quite small. In 2021, there were 238,851 firms in the manufacturing sector, with all but 3,920 firms considered to be small (i.e., having fewer than 500 employees). In fact, three-quarters of these firms have fewer than 20 employees, and 93.4% have fewer than 100 employees. With that said, the bulk of employment comes from larger firms, with 59.0% of all employees in the sector working for firms with 500 or more employees. (Source: U.S. Census Bureau, Statistics of U.S. Businesses) |
4. There were nearly 13 million manufacturing workers in November 2024.
Manufacturing employment went up in November, gaining 22,000 employees from October. Job growth in the sector has slowed in the past year, yet remains above pre-pandemic levels, with 12,887,000 manufacturing employees in November. The sector averaged 12,648,000 employees pre-pandemic (2017–2019). At the same time, nonfarm payroll employment rose by 227,000 in November. The unemployment rate increased to 4.2%, and the number of unemployed Americans increased from 6,984,000 to 7,145,000. The labor force participation rate fell slightly to 62.5%. (Last Updated: 12/6/24; Source: Bureau of Labor Statistics) |
5. Manufacturing employees earned $102,629 on average in 2023, including pay and benefits.
In 2023, manufacturing workers in the United States earned $102,629 on average, including pay and benefits. Workers in all private nonfarm industries earned $86,598 on average. Looking specifically at wages, the average hourly earnings of production and nonsupervisory workers in manufacturing rose to $28.30 in November, with 5.2% growth over the past 12 months. For all manufacturing employees, average hourly earnings were $34.48, up 4.3% year-over-year. (Last Updated: 12/6/24; Sources: Bureau of Economic Analysis and Bureau of Labor Statistics) |
6. In 2024, 93% of manufacturing employees were eligible for health insurance benefits.
Manufacturers have one of the highest percentages of workers who are eligible for health benefits provided by their employer. Indeed, 93% of manufacturing employees were eligible for health insurance benefits in 2024, according to the Kaiser Family Foundation. This is significantly higher than the 81% average for all firms. Of those who are eligible, 78% participate in their employer’s plans (i.e., the take-up rate). State and local government (90%) as well as transportation, communications and utilities (83%) had higher take-up rates in 2024. Meanwhile, the average annual cost of a family health care plan for a family of four in manufacturing was $24,971, below the average of $25,572 for all industries in 2024. (Last Updated: 11/6/24; Source: Kaiser Family Foundation, Employer Health Benefits 2024 Annual Survey) |
7. There were 465,000 manufacturing job openings in October 2024.
There were 465,000 manufacturing job openings in October, down from a revised 478,000 in September. Durable goods job openings decreased to 317,000 in October from a revised 321,000 in September. Nondurable goods openings fell to 148,000 from 156,000 the previous month. As the labor market continues to ease, the number of openings in manufacturing moves closer to pre-pandemic levels. Between 2021 and 2023, the average number of openings in the sector was 832,500, while the average was 432,000 between 2017 and 2019. In the larger economy, nonfarm business job openings bounced back from 7,372,000 in September to 7,744,000 in October. There were 6,984,000 unemployed Americans reported in October. Therefore, for every 100 job openings in the U.S. economy, there were 90.2 unemployed workers. As such, the labor market continues to tighten, with only slightly more job openings than people actively looking for work. One year ago, there were 72.8 unemployed workers for every 100 open jobs. (Last Updated: 12/3/24; Source: Bureau of Labor Statistics) |
8. By 2034, 3.8 million manufacturing jobs will likely be needed.
Over the next decade, 3.8 million manufacturing jobs will likely be needed, and 1.9 million are expected to be unfilled if we do not inspire more people to pursue modern manufacturing careers. Of open jobs, 2.8 million will come from retirement and 760,000 from industry growth; an estimated 230,000 jobs will be created from recent legislative and regulatory actions. Meanwhile, attracting and retaining talent is the primary business challenge indicated by more than 65% of respondents in the NAM’s Manufacturers’ Outlook Survey for the first quarter of 2024. (Source: Deloitte and The Manufacturing Institute) |
9. U.S.-manufactured goods exports totaled roughly $1.6 trillion in 2023.
After weakening in 2019 and 2020 on trade policy and COVID-19 challenges, trade volumes rebounded in the past two years, with U.S.-manufactured goods exports hitting a new record level. In 2023, manufacturers in the United States exported $1,602.00 billion, with durable goods exports hitting an all-time high, at $1,012.28 billion. Nondurable goods exports were slightly lower in 2023, falling to $589.72 billion from $628.77 billion. (Source: U.S. Commerce Department) |
10. Manufactured goods exports have grown substantially over the past couple decades.
Manufactured goods exports have more than doubled over the past two decades. U.S.-manufactured goods exports totaled $622.31 billion in 2002, and in 2023, that figure is $1,602.00 billion, or 2.57 times larger. Nondurable goods exports have grown even faster over that time frame, up from $171.26 billion in 2002 to $589.72 billion in 2023, or 3.44 times larger. Meanwhile, durable goods grew from $451.05 billion in 2002 to $1,012.28 billion in 2023, or 2.24 times higher. (Source: U.S. Commerce Department) |
11. World trade in manufactured goods grew to nearly $15.3 trillion in 2022.
World trade in manufactured goods continued to expand rapidly, rising from $14.87 trillion in 2021 to $15.29 trillion in 2022. That figure has risen from $4.67 trillion in 2000 and $12.14 trillion in 2010. The U.S. share of world trade in manufactured goods was 7.8% in 2022. (Source: World Trade Organization) |
12. Manufacturing in the U.S. would be the seventh-largest economy in the world.
Taken alone, manufacturing in the United States would be the seventh-largest economy in the world. With $2.60 trillion in value added from manufacturing in 2022, only six other nations (including the U.S.) would rank higher in terms of their GDP. Those other nations with higher GDP in 2022 were (in order) the U.S., China, Japan, Germany, India and the United Kingdom. After manufacturing in the U.S., the next five economies would be France, Russia, Canada, Italy and Brazil, in that order. (Source: Bureau of Economic Analysis, International Monetary Fund) |
13. Foreign direct investment in the U.S. reached nearly $2.2 trillion in 2023.
Foreign direct investment in U.S. manufacturing reached a new record level in 2023. Overall, foreign direct investment has jumped from $756.87 billion in 2010 to $2,223.55 billion in 2023. The manufacturing sector comprised 41.22% of total foreign direct investment in 2023, as expressed on a historical cost basis. These data should continue to grow over the coming years, with the sector increasingly more competitive globally and with more companies reevaluating their supply chain and renewing their investments in the United States. (Source: Bureau of Economic Analysis) |
14. Private manufacturing construction spending remains at record levels but is slowing down.
Private manufacturing construction was relatively unchanged in October at $235.0 billion. Manufacturing construction soared dramatically in 2022 and 2023 but is slowing. While up 16.3% year-over-year in October, this is down from 45.5% year-over-year growth in the same month in 2023. Nevertheless, the sector continues to make significant increases in capacity in the United States. (Last Updated: 12/3/24; Source: U.S. Census Bureau) |
15. U.S. affiliates of foreign multinational firms employed more than 5.3 million manufacturing workers.
U.S. affiliates of foreign multinational enterprises employed more than 5.3 million manufacturing workers in the United States in 2022, or roughly 16.4% of total employment in the sector. In 2022, the most recent year with data, manufacturing sectors with the largest employment from foreign multinationals included transportation equipment (1,109,900), including 1,002,500 in motor vehicles; computers (904,000), including 427,200 in semiconductors; chemicals (595,400); machinery (506,700); and food (505,700). Total compensation in the manufacturing sectors from these affiliates was $215.9 billion, and those entities spent nearly $33.8 billion on research and development. (Last Updated: 11/6/24; Source: Bureau of Economic Analysis, Activities of U.S. Affiliates of Foreign Multinational Enterprises, 2022) |
16. Manufacturers perform 52.9% of all private-sector R&D.
Manufacturers in the United States perform 52.9% of all private-sector R&D in the nation, driving more innovation than any other sector. R&D in the manufacturing sector has risen from $132.5 billion in 2000 to a record $404.8 billion in 2023. In the most recent data, pharmaceuticals accounted for 36.1% of all manufacturing R&D, spending $146.1 billion in 2023. Semiconductor and other electronic components (13.7%), other computer and electronic manufacturing (13.6%) and motor vehicles and parts (9.6%) also contributed significantly to R&D spending in 2023, with each hitting new all-time high levels of R&D for the year. (Source: Bureau of Economic Analysis) |
17. Manufacturers consume one-third of the nation’s energy.
Industrial users consumed 33.25 quadrillion Btu of energy in 2022, or 33.5% of the total. Moreover, the U.S. Energy Information Administration estimates that industrial users will consume 34.21 quadrillion Btu of energy in 2030, or 2.9% more than in 2022. (Source: U.S. Energy Information Administration, Annual Energy Outlook 2023) |
18. The cost of federal regulations falls disproportionately on manufacturers.
The cost of federal regulations falls disproportionately on manufacturers, particularly those that are smaller. Manufacturers pay $29,100 per employee on average to comply with federal regulations, or nearly double the $12,800 per employee costs borne by all firms as a whole. The burden is even greater for small manufacturers in the U.S., or those with fewer than 50 employees, which incur the highest regulatory costs of all U.S. firms: an estimated $50,100 per employee per year. Overall, the total cost of complying with federal regulations in 2022 was $3.079 trillion (in 2023 dollars). (Source: The Cost of Federal Regulation to the U.S. Economy, Manufacturing and Small Business, October 2023). |