There is an increasing sense of optimism for U.S. manufacturing. Reports are indicating that the manufacturing field is bouncing back and we are starting to experience a renewed feeling of pride for the Made in the U.S. label. As the manufacturing industry recovers, this can only benefit the U.S. economy as a whole. This is because manufacturing and our economy work hand-in-hand.
The place to start: jobs. The manufacturing field supports more than 17.2 million U.S. jobs and has a multiplier effect. Meaning, every job created in manufacturing creates more than 2.91 jobs in other sectors. Manufacturing also creates wealth. Every $1.00 that is spent on manufacturing within the U.S. turns around to produce $1.48 for the economy.
Manufacturing is additionally creating excellent middle class jobs for our economy. Did you know that the average salary of a manufacturing worker is more than $77k? Nearly $60k is the annual salary of an entry-level manufacturing engineer. Manufacturing helps grow our tax base and enables middle class Americans to invest in our economy.
You might also be surprised to learn that 12% of the U.S. GDP is made up of manufacturing. While other countries may boast a higher percentage rate, you have to consider the size of our country. U.S. manufacturing is actually the tenth largest of the world economies!
Because of manufacturing’s impact on the economy, there has been a lot of recent attention placed on re-shoring.Outsourcing is a hot topic in the manufacturing field, as many point to the fact that losing manufacturing production overseas negatively impacts our economy as a whole. Re-shoring is bringing back production to the U.S. that had been previously outsourced.
To simplify things when looking at manufacturing and our economy, it is wise to consider the “circle” that runs our economy. Essentially, if we make money in our local communities, we are going to spend that money domestically…and those funds will be reinvested locally. Consequently, this will create more jobs…and those individuals employed by local companies will now spend their money locally. The more jobs we have, the more money we make and the more money people are able to spend.
It’s pretty simple reasoning: manufacturing success: economic success!