US Manufacturing
A topic of concern regarding the United States' decline in manufacturing capabilities, especially advanced manufacturing, compared to China's automated and efficient industrial base.
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7/22/2025, 7:25:26 AM
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Summary
US manufacturing is a critical sector, ranking as the second-largest manufacturing nation globally by value added, behind China. It is a significant driver of innovation, performing over 58% of all private-sector research and development in the U.S. The sector contributes substantially to the national economy, with its value added in 2024 making it equivalent to the world's eighth-largest economy. Despite its global powerhouse status and high demand for American-made goods, the sector faces challenges, including concerns about a decline linked to cultural issues like Diversity, Equity, and Inclusion (DEI) impacting education and national competitiveness, as discussed in a fictionalized account from March 2025. Economic factors such as tariffs, short-term debt financing, and the Federal Reserve's interest rate policies also influence the industry. There's a perceived "Trump premium" that could foster private innovation through government-private sector collaboration, contrasting with a critique of the Democratic Party's perceived anti-business sentiment. Recent trends show continued investment in US manufacturing, particularly in clean-technology, even amidst higher interest rates and potential labor shortages. Key subsectors include chemical products, food, beverage, and tobacco products, and computer and electronic products.
Referenced in 1 Document
Research Data
Extracted Attributes
Key Challenges
Decline linked to Diversity, Equity, and Inclusion (DEI) issues, tariffs, short-term debt financing, Federal Reserve interest rates, labor shortages
Market Position
Tends to be a differentiator rather than a cost competitor
R&D Spending (2023)
$404.8 billion
Geographic Concentration
U.S. South (32%), U.S. Midwest (31%)
Women-Owned Manufacturers
5,330 (2% of total US manufacturers)
Global Ranking (Value Added)
2nd largest manufacturing nation (behind China)
Minority-Owned Manufacturers
2,288 (1% of total US manufacturers)
Largest Subsectors (R&D 2023)
Pharmaceuticals (36.1%), semiconductor and other electronic components (13.7%), other computer and electronic manufacturing (13.6%), motor vehicles and parts
Private-Sector R&D Contribution
Over 58% of all private-sector R&D
Largest Subsectors (Value Added)
Chemical products; food, beverage, and tobacco products; computer and electronic products
Manufacturers Importing Raw Materials
35,563 (13% of total US manufacturing companies)
Employment Increase (May 2024-May 2025)
1.2%
Foreign Multinational Employment (2022)
Over 5.3 million workers (16.4% of total sector employment)
Economic Contribution (Value Added 2024)
$2.91 trillion
Manufacturers Distributing Internationally
78,606 (30% of total U.S. manufacturing firms)
Investment in Clean-Technology Facilities (2024)
Over $31 billion across 192 facilities
New Jobs from Clean-Technology Investment (Expected)
Close to 27,000 jobs
Timeline
- U.S. affiliates of foreign multinational enterprises employed over 5.3 million manufacturing workers, accounting for 16.4% of total sector employment. (Source: web_search_results)
2022-XX-XX
- Manufacturing sector R&D rose to a record $404.8 billion, with pharmaceuticals accounting for 36.1% of all manufacturing R&D. (Source: web_search_results)
2023-XX-XX
- The Ipsos National Brands Index provided insight into the U.S. as a brand. (Source: web_search_results)
2023-XX-XX
- Value added from manufacturing in the U.S. reached $2.91 trillion. (Source: web_search_results)
2024-XX-XX
- Over $31 billion in investment in 192 clean-technology-manufacturing facilities was announced through October, expected to create close to 27,000 new jobs. (Source: web_search_results)
2024-XX-XX
- The manufacturing purchasing managers’ index (PMI) nudged back into contraction after moving into expansion earlier in the year. (Source: web_search_results)
2024-07-XX
- A fictionalized account discussed concerns about US Manufacturing decline linked to DEI and economic factors, including a perceived 'Trump premium' and critique of the Democratic Party. (Source: related_documents)
2025-03-XX
- Employment in the U.S. manufacturing sector increased by 1.2% over the past year (May 2024 to May 2025). (Source: web_search_results)
2025-05-XX
- Favorable economic conditions, such as lower interest rates and continued investment, are expected to reignite demand in the industry, potentially intensifying labor shortages. (Source: web_search_results)
2025-XX-XX
- Manufacturing USA celebrates its first decade, continuing to harness public-private partnerships to drive innovation and strengthen domestic manufacturing. (Source: web_search_results)
XXXX-XX-XX
Wikipedia
View on WikipediaManufacturing
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the secondary sector of the economy. The term may refer to a range of human activity, from handicraft to high-tech, but it is most commonly applied to industrial design, in which raw materials from the primary sector are transformed into finished goods on a large scale. Such goods may be sold to other manufacturers for the production of other more complex products (such as aircraft, household appliances, furniture, sports equipment or automobiles), or distributed via the tertiary industry to end users and consumers (usually through wholesalers, who in turn sell to retailers, who then sell them to individual customers). Manufacturing engineering is the field of engineering that designs and optimizes the manufacturing process, or the steps through which raw materials are transformed into a final product. The manufacturing process begins with product design, and materials specification. These materials are then modified through manufacturing to become the desired product. Contemporary manufacturing encompasses all intermediary stages involved in producing and integrating components of a product. Some industries, such as semiconductor and steel manufacturers, use the term fabrication instead. The manufacturing sector is closely connected with the engineering and industrial design industries.
Web Search Results
- Top 20 Manufacturing Companies in the United States (2025 Edition)
• Employment in the U.S. manufacturing sector has increased 1.2% over the past year (May 2024 to May 2025) • 5,330 U.S. manufacturers or 2% are women-owned, while 2,288 or 1% are minority-owned. • 35,563 or 13% of manufacturing companies in the United States import raw materials • 78,606 or 30% of U.S. manufacturing firms distribute their products internationally. • The U.S. South accounts for the most manufacturers, encompassing 32%, followed closely by the U.S. Midwest with 31%. [...] The U.S. manufacturing sector remains a global powerhouse, shaping countless products we rely on every day. From towering skyscrapers to intricate medical devices, American manufacturers drive innovation and economic growth. According to the National Association of Manufacturers, manufacturers in the United States perform more than 58% of all private-sector research and development (R&D), fueling advancements across industries. [...] From automobiles to electronics, American-made goods are in high demand worldwide, making the U.S. one of the top manufacturing exporters. Today, we’re focusing on American manufacturing, taking a look at exclusive statistics and trends on U.S. manufacturers and examining the nation’s most powerful manufacturing companies. Latest Trends and Statistics on the U.S. Manufacturing Sector -------------------------------------------------------------
- U.S. Manufacturing Economy | NIST
SUMMARY: In terms of value added, the primary measure of economic activity, the U.S. is the second largest manufacturing nation in the world behind that of China. The U.S. ranking as a brand suggests that it tends to be a differentiator rather than a cost competitor; however, a number of nations rank higher as a brand. In terms of value added, the largest subsectors of manufacturing are chemical products; food, beverage, and tobacco products; and computer and electronic products, as shown in [...] Rankings for a Selection of Metrics and Countries (Lower is Better) 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. Value Added for Durable Goods by Type (billions of chained dollars), 2009-2023 Value Added for Durable Goods by Type (billions of chained dollars), 2009-2023 [...] Manufacturing in Brief Some brief figures on U.S. manufacturing include the following: U.S. as a Brand Frequently, countries are discussed as brands. Two rankings provide insight into the U.S. as a brand: Ipsos National Brands Index, 2023 Ipsos National Brands Index, 2023 Made-in-Country Index, 2017 Made-in-Country Index, 2017 Inflation Inflation has increased in recent years, which diminishes purchasing power.
- Manufacturing USA
As Manufacturing USA celebrates its first decade, it continues to harness the power of public-private partnerships to drive innovation, bolster domestic supply chains, and cultivate a skilled workforce in order to solidify U.S. global leadership in advanced manufacturing. Learn More Image 14: Photo of a male leaning over a work table with machine. Join the Movement to Strengthen Domestic Manufacturing ------------------------------------------------------ [...] Image 5: Rotational Banner graphic with images and color blocks in a grid on the right showing photos of the Manufacturing USA ecosystem 10 Years of Bridging the Innovation Gap --------------------------------------- As Manufacturing USA celebrates its first decade, it continues to harness the power of public-private partnerships to drive innovation, bolster domestic supply chains, and cultivate a skilled workforce in order to solidify U.S. global leadership in advanced manufacturing. [...] Explore some of the latest news stories about the Manufacturing USA institutes and the work they are doing to advance manufacturing with partners and communities across the country. Learn More Image 12: Rotational Banner graphic with a blue background outlined with different colored geometric shapes. On the right, a photo of Katrina Wells and a photo of Keith Joseph Meet the 2025 Modern Makers ---------------------------
- Facts About Manufacturing - NAM
Manufacturers in the United States perform 52.9% of all private-sector R&D in the nation, driving more innovation than any other sector. R&D in the manufacturing sector has risen from $132.5 billion in 2000 to a record $404.8 billion in 2023. In the most recent data, pharmaceuticals accounted for 36.1% of all manufacturing R&D, spending $146.1 billion in 2023. Semiconductor and other electronic components (13.7%), other computer and electronic manufacturing (13.6%) and motor vehicles and parts [...] U.S. affiliates of foreign multinational enterprises employed more than 5.3 million manufacturing workers in the United States in 2022, or roughly 16.4% of total employment in the sector.In 2022, the most recent year with data, manufacturing sectors with the largest employment from foreign multinationals included transportation equipment (1,109,900), including 1,002,500 in motor vehicles; computers (904,000), including 427,200 in semiconductors; chemicals (595,400); machinery (506,700); and [...] Taken alone, manufacturing in the United States would be the eighth-largest economy in the world.With $2.91 trillion in value added from manufacturing in 2024, only seven other nations (including the U.S.) would rank higher in terms of their GDP. Those other nations with higher GDP in 2024 were (in order) the U.S., China, Germany, Japan, India, the United Kingdom and France. After manufacturing in the U.S., the next five economies would be Italy, Canada, Brazil, the Russian Federation and South
- 2025 Manufacturing Industry Outlook | Deloitte Insights
At the same time, 2024 demonstrated continued, albeit cooling, investment in US manufacturing that could lead to longer-term growth. For instance, a total of more than US$31 billion in investment in 192 clean-technology-manufacturing facilities has been announced during the year through October, and these investments are expected to create close to 27,000 new jobs.9 Construction spending in manufacturing—that is, dollars invested to build new or expand existing manufacturing facilities—reached [...] In 2024, US manufacturing experienced continued investment even as higher interest rates and a challenging business environment have created obstacles to near-term industry growth. Deloitte’s analysis of S&P Global data reveals that while 2024 began with the manufacturing purchasing managers’ index (PMI) moving into expansion for the first time since April 2023,1 which continued for the first half of the year, weaker demand nudged the PMI back into contraction in July 2024.2 In addition, the [...] Favorable economic conditions in 2025 such as lower interest rates and continued investment in US manufacturing may reignite demand in the industry, which could intensify labor shortages. Though wages are likely to continue to rise, manufacturers have a cost lever that they can pull: reducing turnover. According to a 2024 survey of more than 300 human resources leaders at US manufacturing companies conducted by the UKG Workforce Institute, 60% of respondents indicate that the average cost to
Location Data
Colt's Manufacturing Company, 545, New Park Avenue, Elmwood, West Hartford, Capitol Planning Region, Connecticut, 06110, United States
Coordinates: 41.7380254, -72.7225997
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