U.S. Still World’s Largest Manufacturing Economy
Manufacturing continues to play a critical role in the U.S. economy but is challenged by increasing costs including corporate taxes, health care and pensions, regulations, energy and tort litigation, according to the recently released, “The Facts About Modern Manufacturing.” The new Facts handbook was produced in partnership by The Manufacturing Institute, the Manufacturers Alliance/MAPI and the U.S. Department of Commerce.
“The facts clearly illustrate that manufacturing is central to America’s economic future,” said Emily Stover DeRocco, president, The Manufacturing Institute. “The United States has the largest manufacturing economy in the world, producing $1.6 trillion in goods annually. America’s global market share of manufacturing has held steady at around 22 percent for 30 years. Productivity growth is higher in manufacturing than in other sectors, holding down inflation and contributing to a higher standard of living. And one in six U.S. jobs is in or directly tied to manufacturing, which still pays premium wages and benefits.”
“Manufacturing continues to generate more economic activity per dollar of production than any other business sector in the country. And manufacturing drives innovation by conducting nearly half of all research and development and creating the bulk of technology in the nation,” Stover DeRocco said. “Rising costs, however, are hampering our manufacturers’ competitiveness in a global, interconnected marketplace. Non-production costs add almost 18 percent to U.S. manufacturers’ costs relative to our major trading partners.”
The Facts book points out several major cost drivers that are hurting U.S. manufacturing competitiveness, investment and job creation:
- U.S. Does Not Keep Pace with Falling Corporate Tax Rates
- High Health Care Costs Hamstring Competitiveness
- Regulatory Compliance Costs are Large and Growing
- Energy is Critical to the Industrial Sector
The 8th edition of the Facts book is available at NAM.org/facts.