Manufacturing in America

Topic

The significant challenge of re-shoring advanced manufacturing, such as semiconductor fabs, to the United States. It involves overcoming a cultural shift away from manufacturing jobs and rebuilding the 'muscle memory' for operational excellence that has been lost.


First Mentioned

10/1/2025, 4:09:39 AM

Last Updated

10/1/2025, 4:12:10 AM

Research Retrieved

10/1/2025, 4:12:10 AM

Summary

Manufacturing is a significant sector in the United States economy, ranking as the world's second-largest producer after China, with a record output of $2.913 trillion in 2024. Despite this high output, manufacturing employment has been declining since the 1990s, leading to a "jobless recovery" and making job creation a key political issue. While manufacturing's contribution to GDP has decreased relative to sectors like finance, government, and professional services, the industry is undergoing shifts. The semiconductor landscape, for instance, is characterized by intense competition, particularly in AI chips, with companies like TSMC in Taiwan leading advanced manufacturing. The United States faces challenges in regaining manufacturing prowess, having lost some of its "muscle memory" in this area, a situation exacerbated by geopolitical factors like the US-China chip war and export controls.

Referenced in 1 Document
Research Data
Extracted Attributes
  • Key Challenge

    Loss of 'muscle memory' for manufacturing excellence

  • Real Output (2024)

    $2.913 trillion

  • GDP Contribution (2022)

    11.4% of total U.S. GDP ($2.3 trillion)

  • GDP Contribution (2023)

    10.2% of total U.S. GDP ($2.3 trillion)

  • Global Manufacturing Rank

    2nd largest producer after China

  • Employment (December 2024)

    12.76 million people

  • GDP Contribution (Q1 2025)

    9.7% of U.S. GDP ($2.90 Trillion value added)

  • Share of Private-Sector R&D (U.S.)

    53%

  • Manufacturing Job Openings (July 2025)

    437,000

  • Largest Manufacturing Subsectors (U.S.)

    Chemical manufacturing, Food, beverage, and tobacco products, Computer and electronic products

  • Largest Supply Chain Entity by Country (2022)

    United States (83.0%), Canada (3.1%), China (1.8%), Mexico (1.5%)

  • Expected New Manufacturing Positions (by 2033)

    3.8 million

  • Value of U.S. Manufactured Goods Exported (2024)

    $1.6 trillion

  • Average Annual Earnings (Manufacturing Employees)

    $102,629

Timeline
  • Manufacturing employment began declining, leading to a 'jobless recovery'. (Source: Wikipedia)

    1990s

  • Manufacturing employment started a slow recovery, pushed by an upswing in the number of manufacturing establishments. (Source: web_search_results)

    2014

  • Manufacturing represented 11.4% of the total US GDP, amounting to $2.3 trillion. (Source: web_search_results)

    2022

  • Manufacturing contributed $2.3 trillion to U.S. GDP, amounting to 10.2% of total U.S. GDP. (Source: web_search_results)

    2023

  • U.S. manufacturing output reached a record high of $2.913 trillion. Manufacturing employment was 12.76 million people as of December. The value of U.S. manufactured goods exported was $1.6 trillion. (Source: Wikipedia, web_search_results)

    2024

  • Manufacturing contributed 9.7% of U.S. GDP, with a value added of $2.90 Trillion. (Source: web_search_results)

    2025-Q1

  • Manufacturing production in the US expanded by 1.4% from the previous year. There were 437,000 manufacturing job openings. (Source: web_search_results)

    2025-07

  • Projected 3.8 million new manufacturing positions. (Source: web_search_results)

    2033

Manufacturing in the United States

Manufacturing is a vital economic sector in the United States of America. The United States is the world's second-largest manufacturer after the People's Republic of China with a record high real output in 2024 of $2.913 trillion. As of December 2024, the U.S. manufacturing industry employed 12.76 million people. Though still a large part of the US economy, in Q1 2025 manufacturing contributed less to GDP than the 'Finance, insurance, real estate, rental, and leasing' sector, the 'Government' sector, or 'Professional and business services' sector. Manufacturing output recovered from the Great Recession, reaching an all-time high in 2024, but manufacturing employment has been declining since the 1990s, giving rise to what is known as a "jobless recovery," which made job creation or preservation in the manufacturing sector an important topic in the 2016 United States presidential election.

Web Search Results
  • Accelerating the resurgence of American manufacturing - Deloitte

    The United States is the second-largest manufacturing nation for real value added behind China.8 In 2022, manufacturing represented 11.4% of the total US GDP, amounting to $2.3 trillion.9 Matt Bogoshian, executive director, American Manufacturing Communities Collaborative, explains, “We’re finally over the hump in terms of prioritizing manufacturing. We’re headed in the right direction, establishing a stronger manufacturing foundation, and now we need to continue the momentum by doing the hard [...] With a focus on bolstering domestic manufacturing, the United States has an opportunity to advance its global standing and enhance Americans’ flourishing through job growth, greater industrial resiliency, and innovation. Underpinning this transformation most recently have been legislative initiatives, which incentivize investments in US manufacturing. Yet, more is needed to foster continued growth. A sustained effort to de-risk supply chains and establish facilities closer to US customers also [...] For major sectors, like chemicals and high-tech manufacturing, the United States is second behind China in all categories except textiles and clothing, where it is fourth (figure 1).11 The top 10 largest subsectors in the United States are shown in figure 2. The United States ranks 10th among 49 countries in terms of distinct national manufacturing identity (or brand). According to the National Institute of Standards and Technology, the US manufacturing brand is competitive as a differentiator

  • United States Manufacturing Production - Trading Economics

    Manufacturing production in the US expanded by 1.4% from the previous year in July of 2025, picking up from the 0.8% increase in the previous month. It was the sharpest increase since October 2022. Manufacturing Production in the United States averaged 3.54 percent from 1920 until 2025, reaching an all time high of 67.90 percent in July of 1933 and a record low of -39.40 percent in February of 1946. source: Federal Reserve [...] ### Manufacturing Production in the United States increased 1.40 percent in July of 2025 over the same month in the previous year. Manufacturing Production in the United States is expected to be 1.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United States Manufacturing Production is projected to trend around 1.70 percent in 2026 and 2.60 percent in 2027, according to our econometric models. % [...] Manufacturing Production in the United States increased 1.40 percent in July of 2025 over the same month in the previous year.

  • U.S. Manufacturing Economy | NIST

    In 2022, U.S. manufacturing imported 20.6 % of its intermediate goods/services, resulting in 13.4 % of the output being of foreign origin. + The largest supply chain entity for U.S. manufacturing by country is itself (83.0 %) followed by Canada (3.1 %), China (1.8 %), and Mexico (1.5 %). In 2022, the U.S. manufacturing industry net stock for equipment, structures, and intellectual property were $1.8 trillion, $2.0 trillion, and $1.9 trillion, respectively. [...] In 2023, Manufacturing contributed $2.3 trillion to U.S. GDP amounting to 10.2 % of total U.S. GDP, measured in chained 2017 dollars, according to BEA data. + Direct and indirect (i.e., purchases from other industries) manufacturing value added contributed an estimated 17.1 % of GDP (see Table 3.2 of AMS 600-16). According to the Current Population Survey, there were 15.6 million employees in U.S. manufacturing in 2023, representing 9.7 % of total U.S. employment. U.S. as a Brand [...] Credit: Table 6.1 from NIST AMS 600-16 Rankings for a Selection of Metrics and Countries (Lower is Better) Types of Goods Produced The largest manufacturing subsector in the U.S. is chemical manufacturing followed by and food, beverage, and tobacco products with computer and electronic products being 3rd. Credit: Figure 2.9 from NIST AMS 600-16 Value Added for Durable Goods by Type (billions of chained dollars), 2009-2023 Credit: Figure 2-10 from NIST AMS 600-16

  • Manufacturing in the United States - NAM

    Skip to content # Manufacturing in the United States Share on Twitter Share on Facebook Share on LinkedIn Share Link Key FactsFederal and State DataManufacturers’ Outlook SurveyNAM Research ## Key Facts $2.90 Trillion Value added to the economy comprising 9.7% of U.S. GDP in Q1 2025. 13 Million People employed by more than 239K manufacturers in the U.S. 437K Manufacturing job openings as of July 2025 $102,629 Average annual earnings for manufacturing employees 74% [...] % of manufacturing firms with fewer than 20 employees 3.8 Million New manufacturing positions expected by 2033 93% % of mfg employees eligible for health insurance benefits in 2024 53% Manufacturing’s share of all private-sector R&D in the U.S. $29,100 Per employee cost of federal regulations for manufacturers $1.6 Trillion Value of U.S. manufactured goods exported in 2024

  • The Sluggish Renaissance of U.S. Manufacturing

    U.S. states differ significantly in terms of the size of their manufacturing sectors; larger states tend to have more people employed in manufacturing and more establishments. The map below shows the geographical distribution of states’ shares of U.S. manufacturing employment in 2014. The states with the largest shares of manufacturing workers were California, Texas, Ohio, Illinois, Michigan and Pennsylvania. For instance, California employed 10.4% of all manufacturing workers in the U.S., [...] Which states have played the largest role in manufacturing’s recent recovery? The figure below shows the contribution of each state to the overall increase in manufacturing employment and number of establishments from 2014 to 2024. Florida, Texas and Georgia drove most of the revival in U.S. manufacturing, with Florida contributing 17% to the rise in manufacturing employment and 13% to the rise in manufacturing establishments over the past decade. [...] The U.S. manufacturing sector has declined for most of the past 60 years as the economy has shifted toward service industries. Starting in 2014, manufacturing employment has been slowly recovering, pushed by an upswing in the number of manufacturing establishments. Over the past decade, manufacturing employment and establishments grew 5% and 19%, respectively, to 12.6 million people and to 401,000 establishments. If the number of establishments had stayed at its 2014 level, the U.S. economy

Location Data

Toyota Motor Manufacturing Indiana, Gibson County, Indiana, United States

industrial

Coordinates: 38.2906137, -87.5579349

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