NAM study lays out 'facts’ on U.S. manufacturing

Amid a slew of negative news about American manufacturing, the National Association of Manufacturers contends in a new study that manufacturing still plays a dominant and crucial role in economic growth. “The Facts About Modern Manufacturing” produced by the NAM and The Manufacturing Institute and sponsored by Toyota Motor North America, contains government statistics and NAM econom...


Amid a slew of negative news about American manufacturing, the National Association of Manufacturers contends in a new study that manufacturing still plays a dominant and crucial role in economic growth.

“The Facts About Modern Manufacturing” produced by the NAM and The Manufacturing Institute and sponsored by Toyota Motor North America, contains government statistics and NAM economic analysis, It also features a series of success stories in manufacturing.

The book is available for download at .

“The Facts book sets the record straight about manufacturing’s central role in the U.S. economy,” said NAM President John Engler. “It is an essential resource for anyone interested in the future of manufacturing in America %%MDASSML%% from policymakers and the media to educators and political candidates who need to know how manufacturing supports their state’s economy and how they can support manufacturing.”

“The Facts book documents how manufacturing drives economic growth, productivity and innovation in America,” added Jerry Jasinowski, president of The Manufacturing Institute (the research and education arm of the NAM).

“Some mistakenly believe manufacturing in the United States is in decline because of the continuing evolution of global sourcing and competition. In fact, U.S. manufacturing is vibrant, robust and contributes greatly to the dynamic American economy,” added Dennis Cuneo, senior vice president at Toyota Motor North America.

The Facts book highlights six manufacturing pillars that support today’s U.S. economy:

  • Manufacturing made the highest contribution (15%) of all sectors to real Gross Domestic Product (GDP) growth between 2001 and today.

  • Manufacturing is the engine of American technology development and innovation, responsible for more than 70% of private sector R&D.

  • Manufacturing’s high productivity rate %%MDASSML%% which determines real wage and benefit compensation %%MDASSML%% increased by more than 50% over the past decade and was far higher than for services.

  • Manufactured goods make up more than 60% of U.S. exports, helping to pay for U.S. imports. While agricultural exports amount to about $50 billion a year, manufacturers export that much each month.

  • Manufacturing wages and benefits are approximately 25% higher than in non-manufacturing jobs.

  • Manufacturing has a greater multiplier effect on the rest of the economy than does any other sector; each manufacturing dollar generates an additional $1.37 in economic activity.

    • “Even with these strengths, there are many challenges facing manufacturers in America,” Engler said. “Structural non-wage costs such as taxes and regulations are more than 30% higher than for our major trading partners. The underlying pressures that make it difficult to manufacture in the United States should be a top priority for policymakers.”

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