Look past the dated stereotypes, because America's manufacturing sector is a dynamic, $2.9 trillion engine of innovation and growth, directly employing nearly 13 million workers whose evolving skills, demographics, and productivity are powering a remarkable 21st-century resurgence.
Key Takeaways
- In 2022, the US manufacturing sector employed 12.94 million workers, representing 8.1% of total nonfarm employment
- As of May 2023, average hourly earnings in manufacturing were $28.22, up 4.2% from the previous year
- Women accounted for 29.8% of manufacturing employment in 2022, totaling about 3.85 million workers
- US manufacturing output reached $2.3 trillion in 2022, measured in chained 2017 dollars
- In 2022, durable goods manufacturing output was $1.41 trillion, up 5.2% from 2021
- Nondurable goods production index stood at 101.2 in 2023 (2017=100)
- In 2022, manufacturing contributed $2.91 trillion to US GDP, or 10.9% of total GDP
- Manufacturing value added grew 4.8% in real terms in 2022
- In 2021, manufacturing accounted for 11.4% of US private nonfarm GDP
- In 2022, US manufacturing exports reached $1.42 trillion
- Machinery and mechanical appliances exports were $238 billion in 2022
- Vehicle exports totaled $171 billion in 2022
- US manufacturing R&D expenditure was $325 billion in 2021
- In 2022, 62% of manufacturers adopted Industry 4.0 technologies like IoT
- US manufacturers filed 145,000 patents in 2022, 48% of total US patents
US manufacturing is growing with higher wages and jobs, but faces worker shortages and an aging workforce.
Economic Contribution
- In 2022, manufacturing contributed $2.91 trillion to US GDP, or 10.9% of total GDP
- Manufacturing value added grew 4.8% in real terms in 2022
- In 2021, manufacturing accounted for 11.4% of US private nonfarm GDP
- Chemical products contributed $298 billion to GDP in 2022
- Manufacturing payroll was $857 billion in 2022
- In 2022, manufacturing ROI averaged 12.5% for public companies
- Food manufacturing value added was $214 billion in 2022
- Transportation equipment sector GDP contribution $452 billion in 2022
- Manufacturing capital expenditures totaled $243 billion in 2022
- In 2022, manufacturing generated $1.2 trillion in corporate profits before tax
- Fabricated metals value added $127 billion in 2022
- Machinery manufacturing GDP $104 billion in 2022
- In 2022, manufacturing taxes on production were $112 billion
- Computer/electronic products value added $157 billion in 2022
- Manufacturing supported $2.17 trillion in total economic output in 2021 via multipliers
- Electrical equipment GDP contribution $38 billion in 2022
- Plastics/rubber products value added $66 billion in 2022
- In 2022, manufacturing R&D spending was $295 billion, 45% of total US business R&D
- Primary metals GDP $52 billion in 2022
- Petroleum/coal products value added $142 billion in 2022
- Manufacturing depreciation charges totaled $345 billion in 2022
- Pharmaceuticals GDP contribution $202 billion in 2022
Economic Contribution Interpretation
America's manufacturing engine, humming at a cool $2.9 trillion and investing heavily in its own future, is clearly not just making things, but serious money, a mountain of tax revenue, and the very innovations that will keep it competitive.
Employment and Workforce
- In 2022, the US manufacturing sector employed 12.94 million workers, representing 8.1% of total nonfarm employment
- As of May 2023, average hourly earnings in manufacturing were $28.22, up 4.2% from the previous year
- Women accounted for 29.8% of manufacturing employment in 2022, totaling about 3.85 million workers
- Manufacturing added 297,000 jobs from February 2020 to February 2023
- The median age of manufacturing workers was 44.3 years in 2022, higher than the all-industry median of 42.5
- In 2021, 1.2 million manufacturing jobs were held by veterans, comprising 10% of the sector's workforce
- Union membership rate in manufacturing was 8.6% in 2022, down from 10.7% in 2021
- From 2010 to 2022, manufacturing employment grew by 9.2% in professional and technical occupations within the sector
- In 2022, the transportation equipment manufacturing subsector employed 1.68 million workers, the largest subsector
- Manufacturing worker productivity increased by 1.8% annually from 2012 to 2022
- In 2022, 42% of manufacturing establishments reported difficulty finding skilled workers
- Hispanic or Latino workers made up 19.3% of manufacturing employment in 2022
- From 2021 to 2022, manufacturing employment in computer and electronic products grew by 2.5%, adding 28,000 jobs
- In 2023, the quit rate in manufacturing was 1.9% , lower than the total private sector's 2.3%
- Manufacturing supported 18.3 million jobs indirectly in 2022 through supply chains
- In 2022, 65% of manufacturing executives planned to increase workforce training investments
- Black or African American workers comprised 9.1% of manufacturing employment in 2022
- From 2019 to 2022, manufacturing apprenticeships grew by 22%, reaching 50,000 active apprentices
- In 2022, the food manufacturing subsector had 1.72 million employees
- Manufacturing overtime hours averaged 3.2 hours per week in 2023
- In 2022, 28% of manufacturing workers had a bachelor's degree or higher, compared to 37% nationally
- Chemical manufacturing employed 850,000 workers in 2022
- From 2020 to 2023, semiconductor manufacturing added 43,000 jobs
- In 2023, manufacturing job openings averaged 585,000 per month
- Machinery manufacturing subsector employment was 1.12 million in 2022
- In 2022, 55% of manufacturers offered remote work options to some employees
- Asian American workers represented 6.2% of manufacturing employment in 2022
- Fabricated metal product manufacturing employed 1.43 million in 2022
- Manufacturing labor turnover rate was 3.8% in 2022
- In 2023, 72% of manufacturers reported hiring challenges for entry-level positions
Employment and Workforce Interpretation
America's manufacturing backbone is a seasoned, slightly graying workhorse that's stubbornly adding jobs and raising wages while grappling with a skilled worker drought, yet its persistent hiring headaches reveal a sector in a race to modernize its workforce faster than its workers retire.
Innovation and Technology
- US manufacturing R&D expenditure was $325 billion in 2021
- In 2022, 62% of manufacturers adopted Industry 4.0 technologies like IoT
- US manufacturers filed 145,000 patents in 2022, 48% of total US patents
- Additive manufacturing (3D printing) market in US reached $12.6 billion in 2022
- 45% of manufacturers used AI/ML in operations in 2023
- Robotics installations in US manufacturing totaled 39,435 units in 2022
- Cybersecurity spending by manufacturers hit $25 billion in 2022
- 71% of manufacturers invested in digital twins in 2022
- US semiconductor R&D was $55 billion in 2022
- Cloud computing adoption in manufacturing reached 58% in 2023
- Advanced materials R&D funding totaled $8.2 billion federally in FY2022
- 52% of manufacturers used predictive maintenance tech in 2022
- Biotech manufacturing innovations led to 2,500 new patents in 2022
- Industrial internet of things (IIoT) devices in US factories exceeded 50 million in 2022
- Clean energy manufacturing R&D was $10 billion in 2022
- Automation reduced manufacturing defects by 30% on average in adopting firms by 2022
- Quantum computing pilots in manufacturing by 15 major firms in 2023
- 5G implementation in factories covered 25% of large manufacturers in 2022
- Nanotechnology applications in manufacturing generated $1.5 trillion economic impact projected by 2022
- AR/VR training programs adopted by 40% of manufacturers in 2022
- Battery manufacturing capacity expanded 25% to 1.2 TWh annually by 2022
- Blockchain for supply chain transparency used by 28% in 2023
- Gene editing tech in ag-manufacturing led to 15% yield increase by 2022
- Edge computing deployment in 35% of smart factories in 2022
- Sustainable manufacturing tech investments $18 billion in 2022
- Hypersonic materials R&D funded $1.2 billion in 2022
- Digital supply chain platforms adopted by 67% in 2023
- Photonic chip manufacturing scaled 40% production in 2022
- Exoskeleton usage in manufacturing improved productivity 20% for 12% of firms in 2022
Innovation and Technology Interpretation
American factories are feverishly inventing a sci-fi future, spending mountains of cash on robots, brains, and bytes, not just to build things better, but to rebuild everything from the atom up—all while desperately trying to hack-proof the whole dazzling, fragile operation.
Production and Output
- US manufacturing output reached $2.3 trillion in 2022, measured in chained 2017 dollars
- In 2022, durable goods manufacturing output was $1.41 trillion, up 5.2% from 2021
- Nondurable goods production index stood at 101.2 in 2023 (2017=100)
- Chemical manufacturing shipments totaled $922 billion in 2022
- In 2022, primary metal manufacturing output grew by 4.1%
- US factory output capacity utilization was 77.8% in Q4 2023
- Computer and electronic product manufacturing value of shipments was $379 billion in 2022
- In 2023, machinery production index rose 2.3% year-over-year
- Food and beverage manufacturing output was $1.02 trillion in shipments for 2022
- Fabricated metal products shipments reached $1.12 trillion in 2022
- Transportation equipment manufacturing produced $878 billion in value added in 2022
- Plastics and rubber products output increased 3.7% in 2022
- Petroleum and coal products manufacturing shipments were $795 billion in 2022
- Electrical equipment output index was 92.4 in 2023 (2017=100)
- Apparel manufacturing shipments totaled $13.5 billion in 2022, down 2.1%
- Wood product manufacturing value of shipments was $134 billion in 2022
- Printing and related support activities output fell 1.8% in 2022
- Furniture and related product manufacturing shipments $76 billion in 2022
- Nonmetallic mineral products output grew 4.5% in 2022
- Textile mills shipments were $28.4 billion in 2022
- Paper manufacturing output index at 88.7 in 2023
- Pharmaceutical and medicine manufacturing value $496 billion in 2022
- Motor vehicles and parts production was 10.6 million units in 2022
- Aerospace product manufacturing shipments $323 billion in 2022
- Beverage and tobacco product manufacturing output $285 billion in 2022
Production and Output Interpretation
For all the talk of its decline, American manufacturing flexed a $2.3 trillion muscle in 2022, proving it's far from obsolete but clearly picking its battles, with everything from chemicals to cars driving growth while apparel and printing gently fade.
Trade and Exports
- In 2022, US manufacturing exports reached $1.42 trillion
- Machinery and mechanical appliances exports were $238 billion in 2022
- Vehicle exports totaled $171 billion in 2022
- In 2022, US manufacturing trade surplus in chemicals was $48 billion
- Electrical machinery exports $129 billion in 2022
- Aircraft and spacecraft exports $100 billion in 2022
- Optical, medical instruments exports $62 billion in 2022
- Plastics exports $38 billion in 2022
- Pharmaceuticals exports $65 billion in 2022
- Iron and steel exports $18.5 billion in 2022
- US manufacturing imports were $2.45 trillion in 2022
- Computer exports $52 billion in 2022
- Semiconductors exports $52 billion in 2022
- Motor vehicle parts exports $39 billion in 2022
- Organic chemicals exports $71 billion in 2022
- Furniture exports $15 billion in 2022
- US manufacturing trade deficit was $1.03 trillion in 2022
- Mexico was the top destination for US manufactured goods exports at $324 billion in 2022
- Canada received $307 billion in US manufacturing exports in 2022
- China imported $154 billion in US manufactured goods in 2022
- Exports of environmental goods from manufacturing reached $45 billion in 2022
- In 2022, 78% of US manufacturers exported or expected to export
- Germany imported $157 billion in US goods, mostly manufactured, in 2022
- Japan received $76 billion in US manufacturing exports in 2022
- UK imports of US manufactured goods $68 billion in 2022
- South Korea $66 billion in US exports in 2022
- Netherlands $71 billion in 2022
Trade and Exports Interpretation
The US manufacturing sector confidently sold $1.42 trillion of its impressive wares, from planes to pharmaceuticals, to the world—yet still finds itself a trillion dollars in the hole after a shopping spree of its own, proving that even an export powerhouse can have a serious impulse-buying problem.
Sources & References
- Reference 1BLSbls.govVisit source
- Reference 2NAMnam.orgVisit source
- Reference 3CENSUScensus.govVisit source
- Reference 4DELOITTEwww2.deloitte.comVisit source
- Reference 5DOLdol.govVisit source
- Reference 6AMERICANCHEMISTRYamericanchemistry.comVisit source
- Reference 7SEMICONDUCTORSsemiconductors.orgVisit source
- Reference 8BEAbea.govVisit source
- Reference 9FEDERALRESERVEfederalreserve.govVisit source
- Reference 10FREDfred.stlouisfed.orgVisit source
- Reference 11ANNUALSURVEYOFMANUFACTURESCENSUSGOVannualsurveyofmanufacturescensusgovVisit source
- Reference 12NCSESncses.nsf.govVisit source
- Reference 13TRADEtrade.govVisit source
- Reference 14ITAita.doc.govVisit source
- Reference 15PHRMAphrma.orgVisit source
- Reference 16SEMICONDUCTORINDUSTRYsemiconductorindustry.orgVisit source
- Reference 17EPAepa.govVisit source
- Reference 18USPTOuspto.govVisit source
- Reference 19FORTUNEBUSINESSINSIGHTSfortunebusinessinsights.comVisit source
- Reference 20ROBOTICSrobotics.orgVisit source
- Reference 21PTCptc.comVisit source
- Reference 22NISTnist.govVisit source
- Reference 23MCKINSEYmckinsey.comVisit source
- Reference 24GEge.comVisit source
- Reference 25ENERGYenergy.govVisit source