Manufacturing research summary. The manufacturing industry in the US has faced many ups and downs, but it is still a vital part of the country’s economy. Whether you’re interested in a manufacturing job or you’re an employer looking to stay up-to-date, we’ve gathered all of the latest insights on the US manufacturing industry. Some key takeaways from our research include:
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Manufacturing businesses contributed $2.3 trillion to the US GDP in 2021.
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Manufacturing makes up 12% of the US GDP.
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As of 2023, 12.984 million Americans are employed in manufacturing.
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If growth and competitiveness were restored to key manufacturing industries, 1.5 million manufacturing jobs would be restored.
For further analysis, we broke down the data in the following ways:
Production | Over Time | Downtime | Industry | Global
Manufacturing employment statistics
Despite a lingering feeling that manufacturing has declined in the US, the manufacturing industry employs millions of Americans across the country. For more information about manufacturing employment in the US, here are the facts:
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Manufacturing employs 9.6% of all US workers.
The share of Americans employed in manufacturing peaked in 1979 at 22%. Since then, manufacturing employment has declined significantly.
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The number of manufacturing jobs in the US is now only 1.3% less than the pre-pandemic peak.
Though the number of manufacturing jobs has been increasing year-over-year, adding 1.3 million new jobs since the dip in 2020, it still hasn’t reached pre-pandemic levels.
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The average manufacturing worker in the US earns between $35,000 and $45,000.
Depending on the state, manufacturing jobs can pay an average of anywhere between $35,000 and $45,000. More specifically, the average manufacturing worker can expect to make around $17.50 an hour in 2023.
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In the past 10 years, manufacturing employment in the US has increased by 8.2%.
In May 2013, there were around 12 million Americans employed in manufacturing. As of 2023, that number is 12.984 million.
Manufacturing employment over time
Year Manufacturing employment 2023 12.984M 2022 12.789M 2021 12.259M 2020 11.646M 2019 12.815M 2018 12.657M 2017 12.409M 2016 12.334M 2015 12.333M 2014 12.146M 2013 12.000M -
The manufacturing industry is the 4th largest employer in the US.
Employing 12.984 million people, the manufacturing industry is the 4th largest employer in the US, behind Accommodation and Food Services at 14.5 million. The largest employer in the US is Healthcare and Social Assistance.
Largest employers in the US by employment
Industry Number of employees Health care and social assistance 20.9M Retail trade 15.7M Accommodation and food services 14.5M Manufacturing 12.9M Administrative and support and waste management and remediation services 12.6M Professional, scientific, and technical services 9.3M Construction 7.0M Finance and insurance 6.6M Wholesale trade 6.2M Other services 5.6M
Manufacturing production statistics
Manufacturing production is far from its peak in the 1970s, but many Americans have the goal of reducing our reliance on foreign manufacturing. To explore more about manufacturing production in the US, here are some key statistics:
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US manufacturing imports 18.2% of intermediate goods and services.
US manufacturing relies far more on imports of goods and services than it did in the 1970s, when only around 12% were imported.
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About 1 in 10 manufacturing outputs come from foreign origins.
The need to import intermediate goods and services leads to 10.6% of all manufacturing outputs being of foreign origin.
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US manufacturing output (measured in USD) increased by 81% between 1997 and 2021.
This doesn’t account for inflation, as the manufacturing industry’s share of the GDP has actually decreased from 16.09% to only 10.71% within that same time frame.
US manufacturing output over time
| Year | Output (in trillions) | Share of GDP |
|---|---|---|
| 2021 | $2.497T | 10.71% |
| 2020 | $2.238T | 10.63% |
| 2019 | $2.364T | 11.06% |
| 2018 | $2.330T | 11.35% |
| 2017 | $2.193T | 11.26% |
| 2016 | $2.098T | 11.22% |
| 2015 | $2.123T | 11.66% |
| 2014 | $2.046T | 11.66% |
| 2013 | $1.987T | 11.80% |
| 2012 | $1.927T | 11.86% |
| 2011 | $1.864T | 11.95% |
| 2010 | $1.792T | 11.91% |
| 2009 | $1.694T | 11.70% |
| 2008 | $1.804T | 12.22% |
| 2007 | $1.848T | 12.77% |
| 2006 | $1.795T | 12.99% |
| 2005 | $1.693T | 12.98% |
| 2004 | $1.609T | 13.17% |
| 2003 | $1.526T | 13.32% |
| 2002 | $1.470T | 13.45% |
| 2001 | $1.473T | 13.92% |
| 2000 | $1.549T | 15.12% |
| 1999 | $1.489T | 15.46% |
| 1998 | $1.429T | 15.77% |
| 1997 | $1.380T | 16.09% |
Manufacturing production over time
Manufacturing production has changed over time for many reasons. From new technologies to reliance on foreign imports, here are some interesting trends that show how manufacturing production has changed over time:
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US manufacturing production is down -0.3% year-over-year.
After a 0.8% decrease in April 2023, May 2023 shows an overall 0.3% decrease in production from 2022. On the other hand, industrial production in the US is up 3.3% year-over-year.
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The number of manufacturing firms and plants in the US has decreased by 25% since 1997.
Around a quarter of all manufacturing firms and plants that were in operation in 1997 are no longer around today. This has had a substantial impact on production capabilities and outputs.
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Manufacturing productivity has increased by 3.3% since 1987.
While not every good is now being produced more, the production of motor parts has seen one of the most impressive comebacks. Compared to 1987, the US now manufactures 124% more motor vehicles and parts.
Manufacturing downtime statistics
Manufacturing downtime produced especially disastrous effects during the height of the COVID-19 pandemic. While the manufacturing industry has since begun to recover, here are some stats that show the reality of manufacturing downtime:
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In the last three years, 82% of companies have experienced unplanned downtime.
Downtime can also be shockingly expensive. For example, the average automotive manufacturer will lose $22,000 per minute when a production line stops.
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Manufacturing downtime costs companies an average of $260,000 per hour.
Speaking of shockingly expensive, the average hourly cost of downtime can seriously harm companies. Despite this, downtime is actually fairly common.
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Manufacturers experience an average of 800 hours of downtime per year.
This downtime is typically caused by anything from maintenance, tool breaks, adjustments, and more. Overall though, human error and hardware/software issues are the biggest causes of downtime.
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Companies lose an average of $208 million to downtime each year.
When you multiply the average cost of an hour of downtime by the average amount of downtime companies experience per year, you get the obscene figure of $208 million per year.
Manufacturing industry statistics
The manufacturing industry in the US not only affects GDP, but can also affect the lives of US consumers. To discover more about this important industry, we’ve gathered some essential facts you should know:
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Prices received by producers for manufacturing have increased by 1.1% within the past year.
Growing inflation has been an issue since 2020, but it’s unclear where this inflation will go. For instance, prices decreased by 0.3% in May of 2023, but overall inflation is projected to continue increasing.
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US GDP would increase by 15% if growth and competitiveness were restored to key manufacturing industries.
Experts also project that restoring manufacturing industries would produce over 1.5 million new jobs, which would be a huge boon for the US economy.
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Manufacturing is responsible for 20% of US capital investment.
Additionally, the industry is also responsible for 35% of productivity growth, 60% of exports, and 70% of R&D spending.
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Every $1 spent on manufacturing generates $2.79 in economic activity.
That’s an impressive ROI of 179%, showing just how valuable it would be for the US to invest more in the manufacturing industry.
Global manufacturing statistics
Manufacturing is an important industry not only in the US, but around the world. If you want to know a little bit more about manufacturing on a global scale, here are some interesting insights:
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The US is ranked #2 in global manufacturing output.
The US is responsible for 18% of manufacturing worldwide ($1.867 trillion). China is the #1 country for manufacturing overall, responsible for 20% of manufacturing worldwide ($2.010 trillion).
Top 10 countries by manufacturing output
Country Manufacturing output (in billions) Share of global manufacturing China $2,010B 20% United States $1,867B 18% Japan $1,063B 10% Germany $700B 7% South Korea $372B 4% India $298B 3% France $274B 3% Italy $264B 3% United Kingdom $244B 2% Taiwan $185B 2%
US Manufacturing FAQ
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How much of the US economy is manufacturing?
12% of the US economy (GDP) is manufacturing. Manufacturing businesses contributed $2.3 trillion to the US GDP in 2021.
Additionally, the manufacturing industry is the 4th largest in the US by employment, with 12.984 million employees as of 2023.
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Is US manufacturing growing?
US manufacturing has fluctuated between growth and decline over time. For example, in 2021, manufacturing saw a net decline of 8%, while in November of 2022 things turned around to a net positive 0.26%. Events like the COVID-19 pandemic and the 2008 recession tend to have a heavy impact on manufacturing.
However, certain sectors within manufacturing are growing at an impressive rate, with motorcycles, ships, aerospace products, and rail stock growing by 3.9%. Additionally, machinery and computer/electronic products are growing by 3.6% and 3.0% respectively.
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When did US manufacturing start to decline?
US manufacturing started to decline after its peak in 1979. More specifically, the most significant decline in manufacturing occurred between 2000 and 2010, when nearly 6 million jobs in US manufacturing were lost due to cheaper and more readily available foreign manufacturing.
Conclusion
Manufacturing is one of the most important cogs in the gears of the US economy. Manufacturing employs an impressive 12.984 million Americans as of 2023, and is responsible for 12% of the country’s total GDP.
However, these impressive numbers don’t mean that US manufacturing is in a healthy state. After peaking in 1979, the US manufacturing industry has actually declined significantly.
Luckily, new investments in manufacturing have the potential to drive the creation of 1.5 million new jobs, as well as increase the US GDP by up to 15%. Politicians and companies simply need to choose to invest in US manufacturing.
References
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McKinsey & Company – Delivering the US manufacturing renaissance
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BLS – Forty years of falling manufacturing employment
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Federal Reserve Bank – Labor Constraints Remain Greatest Challenge for Resurgent Manufacturing Sector
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Macrotrends – U.S. Manufacturing Output 1997-2023
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BLS – Productivity and compensation, 1987–2015
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BLS – Producer Price Indexes
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U.S. Department of Defense – U.S. Manufacturing Ecosystem Key to Economic Growth, Innovation, Competitiveness
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Brookings – Global manufacturing scorecard: How the US compares to 18 other nations
Author
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
