U.S. Manufacturing Is the World's Tenth-Largest Economy
Industry Multiplier Effects
Manufacturing Companies by Number of Employees
Manufacturing Sectors by Output and Employment
Number of Jobs in Manufacturing in the U.S.
Number of Jobs Supported by Manufacturing in Other Sectors
Change in Manufacturing Jobs by State since 2009
Change in Manufacturing Jobs by Region since 1996
Manufacturing as a Percentage of State Economies
Manufacturing Sector Size in Selected Countries
Manufacturing's Impact on Living Standards
Manufacturing's Impact on Productivity
Where Manufacturing Goods are used in the U.S. Economy
Manufacturing Sector Profitability
Manufacturing is complex and its production processes increase the demand for raw materials, energy, construction, and services from a broad array of supplying industries. Additionally, many functions previously completed within manufacturing companies—from back-office operations and accounting to some types of logistics—are now contracted to other service providers and hence not counted as part of the manufacturing sector.
A measure of the breadth of the supply chain is the backward linkage in the input-output structure of the economy. For an industry with a larger backward linkage, growth in its output induces more production—both directly and indirectly—from other sectors. A mapping of relationships in the economy reveals that manufacturing has the highest backward linkage among the major sectors. As the demand for manufacturing grows, it in turn spurs the creation of jobs, investments, and innovations elsewhere.
The backward linkage (or multiplier effect) shows how much additional output is generated by a dollar’s worth of final demand for each industry. Every dollar in final sales of manufactured products supports $1.48 in output from other sectors—this is the largest multiplier of any sector. The retail and wholesale trade sectors have much lower multipliers, generating only 54 cents and 58 cents respectively in other additional inputs for every dollar of economic activity they generate. Manufacturing plants, therefore, have a powerful and positive impact on economic development.