Manufacturing still key to US economic strength
The National Association of Manufacturers has just issued its seventh edition of The Facts About Modern Manufacturing . It's a reference book about the value of manufacturing the the US economy.
As such, it counters the notion that we are a post-industrial economy, pointing out that if manufacturing would be considered by itself, it would be the eighth largest economy in the world.
Some key facts:
Manufacturing makes the highest contribution to economic growth of any sector, being responsible for more than 70% of private sector research and development.
Manufacturing achieves a high productivity rate year in and year out, increasing by more than 50 % in the past decade.
Manufacturing contributes more than 60% of U.S. exports or about $50 billion a month.
Manufacturers pay wages and benefits that are about 25% higher than in non-manufacturing jobs.
More than other sectors, each dollar spent by manufacturing generates an additional $1.37 in economic activity.
The report also documents policy changes NAM believes necessary to ensure future growth of manufacturing, including:
An educated and productive workforce. Eighty-one percent of respondents in NAM's 2005 Skills Gap survey said they could not find qualified workers to fill open positions.
High built-in costs. Structural costs such as taxes and health care add 31.7% to U.S. manufacturing costs, making it more difficult to produce from a U.S. base.
There's lots more.
