Manufacturing in America – Contributing to Our Economy, Employment, and Innovation

Manufacturing is the backbone of the U.S. economy. From the cars we drive to the electronics we use daily, almost everything we rely on is made in factories across the country. The connected nature of manufacturing creates jobs, supports local economies, and strengthens the nation’s security, helping the U.S. remain a leader in innovation and economic dominance. The Manufacturing Extension Partnership (MEP) plays a key role in ensuring that small and medium-sized manufacturers are a driving force in America’s economic growth.

Big impact on the U.S. economy

Manufacturing plays a huge role in the U.S. economy. In the third quarter of 2024, manufacturers added $2.93 trillion to the economy, up from $2.91 trillion in the previous quarter. Manufacturing made up 10% of the U.S. gross domestic product during that period. If it were its own country, the U.S. manufacturing sector would be the seventh-largest economy in the world.

Additionally, manufacturing has a strong ripple effect on the economy. For every dollar spent on manufacturing, it creates $2.69 in total economic activity. This is one of the largest impacts of any sector. Trade has recovered since the pandemic, with U.S. exports of manufactured goods reaching a record $1.6 trillion in 2023. Manufacturing also supports a large supply chain, creating demand for raw materials, logistics, and services that help other industries grow.

Millions of good jobs

In January 2025, more than 13 million people worked for more than 244,000 manufacturers in the U.S., according to the National Association of Manufacturers (NAM). This is higher than pre-pandemic levels. These jobs pay well, averaging more than $102,000 a year, provide benefits like health insurance, and give hard-working Americans across our country the ability to provide for their families.

Most U.S. manufacturing companies are surprisingly small. More than 93% have fewer than 100 employees, and nearly 75% have fewer than 20. What’s not surprising is that smaller manufacturers often don’t have the financial resources to access private-sector services like consulting, advanced technology, or specialized workforce training. MEP Centers help fill this gap by providing affordable, local support to help manufacturers build a skilled workforce, leading to long-term job stability and economic security for American workers.

Driving innovation and advancing technology

For centuries, the American manufacturing industry has been shaped by creative thinkers who pushed the boundaries to develop new technologies. Innovations like Eli Whitney’s cotton gin and Henry Ford’s automobile assembly line helped the industry grow. U.S. manufacturing became a global leader thanks to inventions such as Patrick Hanratty’s computer-aided design (CAD) software and George Devol’s industrial robot. American computer scientist Lynn Conway’s work helped speed up the development of computer chips, and Chuck Hull’s invention of the first 3D printer in 1984 enabled further innovations.

In the 21st century, American innovation continues to improve manufacturing, making it faster, stronger, and smarter. According to the U.S. Department of Defense, manufacturing is the main driver of innovation in the U.S., responsible for 55% of all patents. The National Center for Science and Engineering Statistics notes that manufacturing companies performed $326 billion – or 54% – of all domestic research and development in 2021.

Source: https://www.nist.gov/blogs/manufacturing-innovation-blog/manufacturing-america-contributing-our-economy-employment-and