Why Manufacturing Makes America Great

While U.S. manufacturing makes up a smaller share of total employment than in decades past, the sector remains a vital source of our standard of living and economic growth.

Here’s why.

Still made in America: It’s a myth that we no longer make anything in this country. If the U.S. manufacturing sector were its own nation, its $2 trillion worth of annual value- added would make it the world’s seventh largest economy.

Supporting millions of other jobs: One in six U.S. private sector jobs depends on manufacturing, with the factory sector supporting 26 million domestic jobs, including roughly 14 million in professional services, wholesale and retailing, transportation, agriculture, and other sectors.

Driving innovation: Manufacturers account for 68 percent of all business R&D performed in America; spillover effects from these investments spread new ideas across sectors.

Generating more economic activity than any sector: Manufacturing has a higher multiplier effect than any other sector: every dollar of final sales in the sector generates $1.92 in economic activity throughout the economy.

Driving productivity growth: Superior productivity growth leads to low inflation for goods, thus stretching family budgets and lifting living standards. U.S. manufacturers are leaders in this metric because they embrace—and develop—advanced technology.

The lion’s share of exports: U.S. manufacturers exported $99 billion in goods per month last year to almost every country on earth. Manufactured products represent more than half of all American exports, helping bridge the country’s huge trade gap.

The United States boasts the world’s most productive, innovative manufacturing powerhouse. The sector is key to future economic growth and America needs to take appropriate measures to encourage and expand innovation and production.