Manufacturing in the United States

[1] The United States is the world's second-largest manufacturer after the People's Republic of China with a record high real output in 2021 of $2.5 trillion.

[4] Manufacturing jobs helped build out the U.S. middle class following World War II, as the U.S. established pro-labor policies and faced limited global competition.

[7] Others point to automation or developments outside the United States, such as the rise of China, globalized free trade, and supply chain innovation.

As a share of employment, manufacturing was estimated to fall from 7.9% of the total U.S. economy in 2016 to 6.9% of it in 2026, continuing a long-term downward trend.

The US stock market also ended a sustained fourteen year bubble in 2001, and the ensuing job loss pushed a significant portion of US population below the poverty line.

The Economist reported in January 2017 that manufacturing historically created good paying jobs for workers without a college education, particularly for men.

Unions were strong and owners did not want to risk strikes in their factories due to large capital investments and significant on the job training.

Making it illegal for companies to purchase shares of their own stock has not yet gained traction as a remedy for the diversion of operating profits away from reinvestment in equipment and people.

Manufacturing continues to evolve, due to factors such as information technology, supply chain innovations such as containerization, companies un-bundling tasks that used to be in one location or business, reduced barriers to trade, and competition from low-cost developing countries such as China and Mexico.

In 2005, the top markets for U.S. exports were Canada (24%), Mexico (13%), Japan (6%), China (5%), United Kingdom (4%), Germany (4%), South Korea (3%), the Netherlands (3%), France (2%), and Taiwan (2%).

In the first quarter of 2010, the primary markets for U.S. merchandise exports were Canada, Mexico, China, Japan, the United Kingdom, Germany, South Korea, Brazil, the Netherlands, and Singapore.

[8] The Economic Policy Institute estimated that the trade deficit with China cost about 2.7 million jobs between 2001 and 2011, including manufacturing and other industries.

Manufacturing continues to evolve, due to factors such as information technology, supply chain innovations such as containerization, companies un-bundling tasks that used to be in one location or business, reduced barriers to trade, and competition from low-cost developing countries such as China and Mexico.

[27] However, 2023 research from McKinsey states that GDP numbers don't accurately capture manufacturing's economic impact.

Manufacturing output in the United States is at an all-time high as of 2023, but employment in the sector has been stagnant following a lengthy decline in the late 20th century.
U.S. manufacturing employment
U.S. manufacturing industry's share of nominal GDP
Panel showing four manufacturing charts, illustrating trends in employment, output, and productivity
Bethlehem Steel in Bethlehem, Pennsylvania was one of the world's leading steel manufacturers for most of the 20th century. But in 1982, it discontinued most of its operations, declared bankruptcy in 2001, and was dissolved in 2003.