“The Facts book sets the record straight about manufacturing’s central role in the U.S. economy,” said NAM President John Engler in an announcement of the new report, The Facts About Modern Manufacturing. “It is an essential resource for anyone interested in the future of manufacturing in America – from policymakers and the media to educators and political candidates who need to know how manufacturing supports their state’s economy and how they can support manufacturing.
“Some mistakenly believe manufacturing in the United States is in decline because of the continuing evolution of global sourcing and competition. In fact, U.S. manufacturing is vibrant, robust and contributes greatly to the dynamic American economy,” added Dennis Cuneo, Senior Vice President at Toyota Motor North America, a sponsor of the report project.
The Facts book highlights six manufacturing pillars that support today’s U.S. economy:
- Manufacturing made the highest contribution (15 percent) of all sectors to real Gross Domestic Product (GDP) growth between 2001 and today.
- Manufacturing is the engine of American technology development and innovation, responsible for more than 70 percent of private sector R&D
- Manufacturing’s high productivity rate – which determines real wage and benefit compensation – increased by more than 50 percent over the past decade and was far higher than for services.
- Manufactured goods make up more than 60 percent of U.S. exports, helping to pay for U.S. imports. While agricultural exports amount to about $50 billion a year, manufacturers export that much each month.
- Manufacturing wages and benefits are approximately 25 percent higher than in non-manufacturing jobs.
- Manufacturing has a greater multiplier effect on the rest of the economy than does any other sector; each manufacturing dollar generates an additional $1.37 in economic activity.
The report is available online for download at NAM's website.
