7 Statistics that Show Positive Trends in Domestic Manufacturing
Each month, the Institute for Supply Management (ISM) publishes the ISM Report On Business. It’s a collection of important facts and figures, benchmarked to show the relative health and strength of the economy. It provides, at a glance, a review of how the manufacturing economy is doing month over month and year over year, as well as what trends may be developing or what outliers exist. It’s an extremely important, informative overview. But it doesn’t always tell the whole story.
To understand the real picture of what’s going on, it’s worth looking at statistics from other reputable sources, including the National Association of Manufacturers (NAM), the National Institute of Standards and Technology (NIST), and IndustryWeek, to name a few. Below, we’ve compiled seven statistics that add context to recent ISM reports following the pandemic in 2020. They’re extremely telling as to where the manufacturing economy is and where it’s going.
1. For every $1 spent in manufacturing, $2.74 is added to the economy
We often hear about the U.S. as a consumer-based economy, where production outputs are lower and less impactful than they once were. The fact is, manufacturing continues to drive a significant portion of the economy. Manufacturing is still essential, with a nearly threefold return on investment.
2. There are more than 12.13 million workers employed in manufacturing
There are consistently headlines about the skills gap and difficulties hiring within the manufacturing sector. The fact is, manufacturing continues to be one of the largest sector-based employers in the U.S. economy. More than 12 million blue-collar workers still rely on their manufacturing job in 2020.
3. 92% of manufacturing employees are eligible for health insurance
Not only is manufacturing a thriving sector to work in, it’s also one of the best in terms of pay and benefits! More than 90% of manufacturing employees are eligible for health benefits — a number that’s better than any other sector. Manufacturers are committed to keeping their employees safe and healthy.
4. Since 1990, U.S.-manufactured goods exports have quadrupled
A shrinking manufacturing economy? Hardly. Even amidst reports of offshoring and manufacturing jobs migrating overseas, domestic manufacturers have managed to quadruple their export production over the past 30 years. This is a staggering feat that shows the resilience of American-made goods on a global scale.
5. Foreign direct investment in U.S. manufacturing is nearly $2 trillion today
Speaking of American-made goods, foreign investments in the production of those goods have never been higher than they are today. With nearly $2 trillion in overseas investments in American manufacturing, it’s clear that the world still values U.S. production and sees it as a strategic investment.
6. 37% of world manufacturers would prefer to produce in the United States
How much does the world love American manufacturing? Enough that more than a third of global manufacturers would like to relocate their production to U.S. soil. What’s stopping them? According to those surveyed, higher costs associated with relocation to U.S. soil and taxation affiliated with production.
7. 23% of U.S. manufacturers expect to grow +10% in the next five years
What does the future look like for domestic manufacturing? According to small manufacturers (<$100 million in annual sales), the future is bright! Almost a quarter of small domestic producers expect their business to grow by 10% or more over the next five years, even in spite of current headwinds. It’s a positive sign that U.S. manufacturing is reaching stable, sustainable ground at a time of global competitiveness.
The above statistics paint a positive picture of domestic manufacturing, even amidst some current uncertainties and question marks. It’s hard to argue with these numbers, though — and that should mean plenty of reasons for U.S. producers to feel good about the future.