Eighty percent of Americans believe the United States should invest more heavily in manufacturing. Why? Because strong manufacturing capabilities are the single best predictor of a vibrant, successful and growing economy. Simply put: manufacturing matters.
Manufacturing supports an estimated 17.4 million jobs in the United States—about one in six private-sector jobs! More than 12 million Americans (about 9 percent of the total U.S. workforce) are employed directly in manufacturing. Of all industries, manufacturing has the highest multiplier effect. For every $1 spent in manufacturing, another $1.32 is added to the economy. Investments in manufacturing reverberate across many other sectors of our economy.
When it comes to world-class manufacturing, America has a number of important advantages. We have advanced research and development capabilities, widespread use and availability of technology, and vast natural resources and energy. But that’s not all. The United States has a highly skilled workforce with a strong work ethic and an unmatched network of suppliers and distributors.
These are just a few of the advantages that have made American manufacturing the envy of the world for most of the past century. And despite increased competition from emerging markets, they remain as relevant as ever today. But as recent years have shown, simply having these advantages is not enough.
You’ve probably heard that it’s 20 percent more expensive to manufacture in the United States compared to other countries, but the cost of labor isn’t the problem. The U.S. manufacturing industry is held back by a number of factors, such as high tax burdens, burdensome governmental regulations and aging infrastructure. We need pro-manufacturing policies that level the playing field for U.S. manufacturers.
America’s position of global leadership is not a birthright. Restoring U.S. manufacturing to a position of strength will require deliberate and sustained effort by both business and government. The people have spoken. It’s time for action.