The Economic Impact of Manufacturing

Today, the manufacturing industry continues to impact the daily lives of countless people. The ability to manufacture individual parts has had some amazing effects on our world. Unfortunately, many people are unaware of the benefits that manufacturing provides for businesses and everyday consumers across the world. Even today, the American economy is heavily impacted by the manufacturing industry.

The most important benefit of the manufacturing industry is how many jobs it creates for Americans. Tags and stamps that read, “Made in the U.S.A,” are an indication that someone in America helped produce that product. It represents a job created, providing an income for a person or even a family. There are approximately 12.5 million workers in this field which equates to 8.5% of the workforce.

Other benefits stem from the job creation in manufacturing. For example, it also cuts down on costs. All the elements of production are in the same place with the same workers. Likewise, manufacturing in the U.S. increases the public perception of your company and brand overall. Most people appreciate that you want to create jobs in America. As a result, they choose to buy your products over products from a company that outsources their production.

When it comes to supporting other sectors of the economy, the manufacturing industry provides the greatest support. As a result, it is considered the largest multiplier out of every part of the economy. For every dollar spent in manufacturing, other sectors earn even more on the back end. On average, it equals about 50 cents on the dollar. By creating profits for other sectors of the economy, manufacturing proves to be a vital industry to have around; without it, the economy would take a serious hit.

No economy is complete without the import and export of goods. When the manufacturing industry in America is strong, it results in the exports of quality goods to different countries. In the last two decades, the export of manufactured goods has continued to increase. Because of the strong growth over the years, we can count on manufacturing to deliver quality products for exportation. With FTAs (Free Trade Agreements) with several countries, the economy in the US reaps the benefits of importing and exporting goods. In turn, this improves the global economy as well. Every year the percentage of exported goods continues to increase.

The manufacturing industry plays a crucial role in many areas, but none are quite as important as the economy. Mosty, the importance is felt in the creation of jobs. Our economy cannot grow if consumers have no money to spend. On a bigger scale, it also increases the value of products made, and in turn, these quality products are perfect for export. These are only a few ways that manufacturing impacts the economy, but they are some of the biggest ways that are known. Every day the process of developing goods for consumers creates jobs as well as revenue for the United States. Creating manufactured items in the United States can change our country and the lives of everyone here for the better. If you want to learn more about these benefits from LTC Roll and Engineering, we can help. Contact us today by calling (586) 465-1023.