Celebrating National Manufacturing Month
The Importance of Manufacturing
Whether you know it or not, your daily life is impacted by the manufacturing industry. From the goods that you buy, to the car that you drive.
There is often a large misconception that the manufacturing industry is simply working in a factory, but we’re here to set the record straight. The manufacturing industry is much more than just an assembly line in a factory. It is a key driver of the U.S. economy, playing a crucial role in employment, innovation, productivity, environmental sustainability, and our nation’s exports.
As we celebrate National Manufacturing Month, it’s important to educate ourselves and gain a deeper understanding of the industry that propels our world forward, driving growth and progress.
For Every $1 spent in manufacturing, there is a total impacts of $2.69 to the overall economy
What this statistic shows is that when money is invested in manufacturing activities, it has a positive impact on the economy, creating a total economic effect of $2.69 for every dollar spent. This includes indirect benefits, such as employees in related industries spending more and the increased demand for goods and services to support the manufacturing process.
Manufacturing is responsible for 55% of patents in the U.S. making it the main source of innovation for our country,
According to the Department of Defense, U.S. manufacturing is driving force of innovation in the U.S., responsible for 55% of all patents and 70% of all research and development spending. Click below to watch a brief video to learn more
There are nearly 13 million manufacturing workers in the U.S. as of September 2024
There’s a few reasons why there is such a high employment rate within the manufacturing industry. The first one being that the manufacturing industry keeps growing and changing, making new jobs all the time. As the industry grows, it needs more specialists and people with specific skills. This leads to even more jobs being created, and the cycle continues.
The second reason is because the manufacturing industry is facing a massive shortage in workers due to the fact that over 1/3 of the manufacturing workforce is over the age of 55. Despite the wave of baby boomers retiring, there are still over 12 million people employed in the manufacturing industry and that number is going to grow more and more everyday.
U.S. manufacturing accounts for 35% of American productivity growth and 60% of our exports
The manufacturing sector does a lot more than just creating jobs. It’s a driving force toward innovation and growth!
When manufacturing companies put money into research and development, they come up with cool new technologies and products that help different industries grow. Making stuff right here at home also cuts down on our need for imports and gives a nice boost to local economies. Plus, all that investment in research and development leads to some pretty exciting innovations that can shake things up in the global market!
By 2024, 3.8 Million Manufacturing jobs with likely be need
In the next ten years, about 3.8 million manufacturing jobs will be up for grabs. It’s expected that 1.9 million of these jobs won’t be filled unless we get more people interested in modern manufacturing careers. Out of the available jobs, 2.8 million will come from retirements and 760,000 from industry growth. On top of that, approximately 230,000 jobs will be created due to recent legislative and regulatory actions.
So overall, the manufacturing industry plays a crucial role in society in numerous ways, which is why we aim to emphasize a few key reasons for its importance. While the industry is primarily focused on converting raw materials into products, these goods populate our homes, communities, and workplaces, shaping our daily lives. It serves as the foundation of our economy, significantly contributing to job creation, technological progress, national productivity, and innovation, all while making ongoing efforts to improve the environment.
Sources
- “U.S. Manufacturing Ecosystem Key to Economic Growth, Innovation, Competitiveness.” U.S. Department of Defense, 14 Oct. 2022, www.defense.gov/News/News-Stories/Article/article/3189049/us-manufacturing-ecosystem-key-to-economic-growth-innovation-competitiveness/
- “Facts about Manufacturing.” NAM, National Association of Manufacturers, 9 Oct. 2024, nam.org/manufacturing-in-the-united-states/facts-about-manufacturing-expanded/.
- Hartmann, Anath. “Study: Manufacturing in U.S. Could Need up to 3.8 Million Workers.” NAM, National Association of Manufacturers, 3 Apr. 2024, nam.org/study-manufacturing-in-u-s-could-need-up-to-3-8-million-workers-30626/.
- “US Manufacturing Could Need as Many as 3.8 Million New Employees by 2033, According to Deloitte and the Manufacturing Institute.” Deloitte United States, 3 Apr. 2024, www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/us-manufacturing-could-need-new-employees-by-2033.html.
