This is an interesting article that shows the great impact manufacturing has on our economy. The source of this information is the following clickable link: The public policy blog of the American Enterprise Institute.
Manufacturing led US economy in growth
last year, and would be world’s 10th largest economy as a separate country
RANK
|
COUNTRY
|
GDP IN 2012 (TRILLIONS)
|
1
|
United States
|
$15.68
|
2
|
China
|
$8.22
|
3
|
Japan
|
$5.96
|
4
|
Germany
|
$3.40
|
5
|
France
|
$2.61
|
6
|
United Kingdom
|
$2.44
|
7
|
Brazil
|
$2.39
|
8
|
Russia
|
$2.02
|
9
|
Italy
|
$2.01
|
10
|
US Manufacturing
|
$1.86
|
11
|
India
|
$1.82
|
12
|
Canada
|
$1.81
|
The Bureau of Economic Analysis
(BEA) released data today on “Gross Domestic Product by
Industry” for 2012 with details on the contributions to the nation’s
economic output last year that originated from 20 different private-sector
industry groups and two government categories (federal and state/local). Here
are some highlights of the report:
1. Of the 22 industry groups, 19 made a positive contribution to
the real GDP growth last year of 2.2%, and three made a negative contribution
(the two government categories and the industry group: Agriculture, forestry,
fishing and hunting).
2. Among the 22 industry groups, durable manufacturing led the
US economy at 9.1%, which was by far the highest growth rate of any industry,
and overall manufacturing grew at a rate of 6.2%. Following manufacturing, the
information sector had the next highest growth rate of 5.8%.
3. Total US manufacturing output last year reached $1.866
trillion, which established a new record high for current-dollar manufacturing
output in a single year, breaking the previous record in 2011 of $1.73
trillion. In constant dollars, last year’s total manufacturing output was just
slightly below the record for factory output established in 2007, before the
recession. Durable manufacturing output, adjusted for inflation, exceeded
$1 trillion (in 2005 dollars) for the first time, and rose to a new record
high.
4. If
US manufacturing were counted as a separate economy, it would rank as the tenth
largest national economy in the world, see chart above (IMF data here for
GDP in 2012). The $1.866 trillion of output produced in America’s
factories last year was just slightly below the $2.1 trillion in GDP for the
entire economy of Italy, and ahead of the entire national output in India
($1.82 trillion) and Canada ($1.81 trillion).
5. Real value added for construction increased last year by
3.2%, following eight consecutive years of contraction, reflecting strong
growth in private residential construction in 2012. This is more evidence
that 2012 was the “year of the housing recovery.”
MP: Measured
by growth rates in economic output, the manufacturing sector of the economy
clearly remains at the forefront of the economic expansion, with especially
strong growth in the production of durable goods like automobiles, machinery,
appliances, computers and electronic products, and furniture. The manufacturing
sector grew last year almost three times faster (6.2%) than the overall economy
(2.2%), and the durable goods manufacturing grew more than four times faster (9.1%)
than the overall US economy. Of the 2.2% expansion in real GDP last year,
about one-third of that growth came from US manufacturing (see Table 2 of the
BEA report), even though manufacturing output last year represented only about
12% of total GDP.
Along with manufacturing output that reached new record highs in
current dollars in each of the last two years, and is now close to a record
high in constant dollars, the US manufacturing sector earned record profits in
each of the last two years, totaling more than $1 trillion for 2011 and 2012
combined. Flush with record-level profits, the manufacturing sector has never
been financially healthier than it is today and the future of American
manufacturing has never looked brighter. After years of negative reports about
the decline of American manufacturing, it’s time to recognize that US
manufacturing is alive and well – it’s leading the economic recovery, and
poised for even greater growth in the future. Manufacturing remains a critical
sector of the US economy, and its importance can be understood by realizing
that the output produced by America’s factories is the economic equivalent of
adding the entire economic output of Italy, India or Canada to the US economy.
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