Thomas Stilp, JD, MBA/MM, LLM, MSC
We represent and work with a number of manufacturing companies. We thought it would be interesting to compile statistics from various sources about manufacturing, some of which you may find surprising.
Manufacturing is an essential component of gross domestic product. In 2018, it was $2.33 trillion. That drove 11.6 percent of U.S. economic output, according to the Bureau of Economic Analysis.
Every dollar spent in manufacturing adds $1.89 in business growth in other supporting sectors, according to the National Association of Manufacturers. This figure is up from the past show that for every $1.00 spent, manufacturing added another $1.40 to the economy. Illinois Technology & Manufacturing Association.
The United States has 12.75 million manufacturing jobs, according to the Bureau of Labor Statistics. These jobs pay 12% more than all others. In 2017, they earned an average of $84,832 per worker. With benefits, that is $40.79 per hour.
In 1970, China was the world’s fifth largest manufacturer. China took the No.1 spot in 2010, replacing the United States. Japan is third, at 10 percent, followed by Germany at 7 percent, South Korea at 4 percent, and India at 3 percent.
China produces 20% of the world’s goods, according to a Brookings Institute report. The United States produces 18%, and Japan produces 10%. The top three nations produce almost 50% of all the world’s goods.
In comparing production, two facts are important. First, manufacturing represents 27% of China’s economy, whereas manufacturing represents only 12% of the US economy. Congressional Research Service, US Manufacturing in International Perspective (Prepared for Members and Committees of Congress). Second, China has almost 1.4 billion people compared to the 325 million in the US, according to the World Bank, Census Bureau. Thus, at less than a third of the population, US manufacturing is still the most productive on the planet.
At Stilp Business Law, P.C., we are a proud supporter of manufacturing. For over three decades, we have helped solve many legal needs of manufacturing companies as they continue to work to produce the world’s goods.
Additional sources retrieved at: https://www.thebalance.com/u-s-manufacturing-what-it-is-statistics-and-outlook-3305575
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