U.S. Manufacturing At a Crossroads, The Facts Shows

November 3, 2009—The Manufacturing Institute

The 8th edition of The Facts About Modern Manufacturing, released October 6, illuminates a critical reality in the future of U.S. manufacturing: while domestic manufacturing continues to be a cornerstone of the U.S. economy, it faces significant challenges that threaten its health as the current economic climate intensifies external costs and competition from abroad. The Facts, produced in partnership with the U.S. Department of Commerce and the Manufacturers Alliance/ MAPI, provides a glimpse into the strengths of the manufacturing sector as it has kept pace with the overall economy, maintaining a consistent 22 percent market share and increasing its GDP by over 7 times since 1947.

"The facts clearly illustrate that manufacturing is central to America's economic future," says 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. 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."

While highlighting U.S. manufacturing as the world's largest manufacturing economy, Facts also narrates a real-time story of how it must navigate the turning tides of government policy, an increasingly integrated and complex global economy, and the new demands for a skilled 21st century workforce.

"This positive portrait of the domestic manufacturing industry cannot overcome the doubts about its future; the Recession has resulted in a tremendous loss of jobs, investment, and creative energy in 2008 and 2009," DeRocco says.

Facts reveals that now, more than ever, the United States must focus on a significant re-investment in the manufacturing industry in order to drive critical innovation, develop the skills of the next generation of workers, and effect policies that sustain a favorable business climate. On the horizon, industrial powerhouses like China, Brazil, India, and the Asian Tigers, and established high-tech industrial leaders in Germany, Japan, and the Nordic countries, threaten to surpass the United States on a competitive world stage.

For the complete report, click here.