Manufacturing has been important to the United States throughout the 20th and 21st centuries–even if that history has had its ups and downs. The 50’s and 60’s are generally considered to be the heyday of US manufacturing, as they represented a peak in the importance of manufacturing to the overall US economy. That being said, however, there is a common misconception that manufacturing in the US is vanishing–and that is simply not true. Let’s take a closer look at the situation as it stands today:
By the numbers: the importance of modern day manufacturing in the US
A recent report by the National Association of Manufacturers points to a plethora of data that supports an optimistic outlook towards US manufacturing. For example, according to the most recent data, Manufacturing generates over 2 trillion dollars every year, and employs over 12 million people. The report goes on to point out that, even taken by itself, manufacturing in the United States is worth more than all but 9 of the world’s countries. Perhaps, most importantly, however, the report states that US manufacturing has experienced enormous growth over the past couple of decades due to increased efficiency and productivity.
A new era for manufacturing
Though the immense size of the US manufacturing sector is certainly impressive, the increased productivity offers what is perhaps the most important lesson. According to economic research put out by the Federal Reserve Bank of St. Louis, the real output per hour index of the United States manufacturing sector has been skyrocketing for decades, having nearly tripled since the mid 80’s. This shows that, despite fiercer global competition and the cheap labor that is so often exploited by foreign manufacturers, the US manufacturing industry stays competitive by working efficiently.
Get SMART and increase your efficiency
ERP software is an important tool in increasing efficiency, but manufacturing management software allows businesses to manage all data and information with one unified system. Your company needs smarter manufacturing management software, make a smarter move in 2016 and contact SMe Software today!
