Manufacturing accounts for more than 12 million jobs in the U.S1. It is a critical industry with an economic impact that goes far beyond the manufacturing sector. With higher than average employee wages and the “multiplier effect,” manufacturing is an economic game-changer.
In the second quarter of 2015, the average total annual compensation (including benefits, insurance and retirement) earned by a manufacturing employee was $76,8772, whereas, those employed in the private sector earned an average of $45,3693. Manufacturing employees’ higher wages open the doors to a higher standard of living and overall greater spending—money that is put back into the economy.
Manufacturing creates a cycle of growth that affects other sectors. As manufacturing grows, it requires more employees, resources and suppliers to support its output. Directly and indirectly, supporting sectors increase their activities, resources and create new jobs as well.
According to the U.S. Bureau of Economic Analysis summary provided by the Manufacturing Institute, every dollar input into final sales of manufactured products supports $1.33 in economic output from other sectors4. The effect manufacturing has on other sectors and the economy is called the multiplier effect. No other sector has a greater effect than manufacturing!
Manufacturers develop national wealth and power through innovation. The economic significance of the manufacturing industry is impressive while perhaps underestimated. Manufacturing is arguably the main driver of economic growth in the U.S.A. and we’re proud to be a part of its success.
Learn more about MME group contract manufacturing services.
1,2 U.S. Bureau of Labor Statistics – Manufacturing: NAICS 31-33
3 U.S. Bureau of Labor Statistics – Economic News Release. Sept. 9, 2015.
4 Manufacturing Institute – U.S. Bureau of Economic Analysis, Annual Input-Output Tables