The Status of American Manufacturing

Manufacturing has been a leader in the economic recovery as demand from abroad strengthened and manufacturers picked up production and spending to meet demand after a record drawdown in inventories in 2009.

Current Status of American Manufacturing

- Factories added 101,000 workers to payrolls in the first four months of the year

- The Institute of Supply Management’s (ISM) employment gauge climbed to 59.8, the highest level since May 2004.

- ISM’s measure of exports increased to 62, the highest since December 1988.

- Nondefense new orders for capital goods in April increased $5.5 billion or 9.2 percent to $66.1 billion.


Trends in American Manufacturing

- Manufacturing's share of the US economy has dropped to 12 % of GDP from the high of 28.3 percent in 1953, after WW II.

- Manufacturing employment has fallen to 9.25% of US Employment from 26.5% in 1969.

- From 2000 to 2008, the U.S. share of global output fell from 31 % to 27 %.

- Commercial shipbuilding and consumer electronics industries have largely disappeared since the 1980s, while U.S. steelmakers now account for only 7 % of global output (compared to 38 % for Chinese steelmakers).

- The migration of manufacturing overseas is not confined to traditional metal-bending activities: the pharmaceutical industry is now incapable of manufacturing antibiotics such as penicillin without supplies from China.



Issues Facing the Future of American Manufacturing


- The European debt crisis creates a stronger dollar and the potential for slower demand from Europe potentially slowing U.S. exports.

- America’s annual trade deficit has increased from $380 billion at the beginning of the decade to well over $700 billion today.

- China’s growth rate averaged about 10 percent annually throughout the decade partially due to Chinese currency manipulation keeping cost of their goods artificially low.


Ben Moore
Agent Technologies, Inc.