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The New Economy
Over the last few decades, the economy has become increasingly technology based, inspiring the term "The New Economy." With the spotlight on technology, some assume manufacturing has fallen by the wayside. In reality, our tech-driven society would cease to function without manufacturing.
Any process that takes raw materials and creates new products, is an example of manufacturing. Manufacturers produce the microchips, cell phones, and other hundreds of gadgets we depend on daily. Manufacturing fuels economic and job growth, innovation, and the high standard of living we enjoy in the U.S.
Manufacturing is a major boon to our economy. For every $1 spent on manufacturing, $1.48 is added to the economy. This is the largest multiplier of any sector. To give you a basis for comparison, the financial services sector only returns about 50 cents to the economy for each dollar of activity. The manufacturing sector employs a sizable part of the country’s labor force — about 12 million, or 9 percent of all workers.
Manufacturing gives us the products and machines we rely on to work, play, communicate, and more. Say you decided to go golfing. To make playing 18 holes possible, a manufacturer had to produce the shaft of your clubs and cut it to the right length. Another manufacturer that makes rubber compounds had to produce the grip, and yet another company had to manufacture the club heads. Then skilled laborers would have to put all the components together. Next time you pick up your phone or put on your new shoes, take a moment to think about how many processes went into making them.
We certainly take for granted everything manufacturing does for our society. But don't take our word for it — check out this infographic on the 15 most important manufacturing facts.
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