The manufacturing sector may drive the current U.S. economic recovery, but it faces several challenges, says a new handbook, The Facts About Modern Manufacturing, recently released by the National Association of Manufacturers and The Manufacturing Institute. This 7th edition spotlights the latest U.S. government statistics, NAM economic analysis and corporate success stories about manufacturing in America.
“Manufacturing output in America is at the highest level in U.S. history and continues to support our economy,” NAM President John Engler said. “At the same time, manufacturers in the United States face rising energy and health care costs and increased global competition as well as a serious shortage of skilled production workers, scientists and engineers that will intensify as the baby boom generation retires.”
“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.
Among the points made in the book:
–Manufacturing made the highest contribution (15 percent) 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 percent of private sector R&D.
–Manufacturing’s high productivity rate – which determines real wage and benefit compensation – increased by more than 50 percent over the past decade and was far higher than for services.
–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, structural non-wage costs such as taxes and regulations are more than 30 percent higher than our major trading partners,” added Engler. “The underlying pressures that make it difficult to manufacture in the United States should be a top priority for policymakers and anyone running for office during this election cycle.”
The Facts book is available at www.nam.org/facts
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